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Monday, 24 September 2012

A Conversation with Ray Dalio: Key Takeaways

Ray Dalio, founder of Bridgewater Associates, the world’s largest macro hedge fund with AUM $120 billion provided an hour-long interview with CNBC’s Maria Bartiromo. The law of large numbers tells you that it is impossible to manage large AUMs with historical phenomenal returns. Yet, Dalio has defied this logic and has been listed as the top hedge fund by net gains since inception. The interview can be found here: http://www.youtube.com/watch?v=SFaRazMpxcM


Read more here: A Conversation with Ray Dalio: Key Takeaways

Saturday, 1 September 2012

Investment Ideas From The Top 5 Industries At A 52-Week Low

Studies have shown that beaten-down stocks may be a potential buy if an investor has the stomach for volatility and is able to withstand the slings and arrows of outrageous fortune in order to reap the benefits of long term value investing. The caveat is that stocks that have experienced a precipitous decline are often riskier than other stocks. The reason is because there is an inverse relation between volatility and price. In other words, low price stocks have higher volatility, which is why these companies often have higher default risk due to an increase in financial leverage. For instance, stocks which are trading below $1 in Nasdaq may announce a reverse stock split in order to gain compliance with listing requirements, and they are also perceived to be more risky trades. Read more here: http://seekingalpha.com/article/292143-investment-ideas-from-the-top-5-industries-at-a-52-week-low

Kinross Gold Corporation (KGC) Part 2

Continued from Part 1 Kinross Gold Corporation (KGC) Part 1 Valuations
Read more here: Kinross Gold Corporation (KGC) Part 2

Kinross Gold Corporation (KGC) Part 1

Macro thesis Gold and silver miners have witnessed a surge in prices as the market thinks that ECB and the Fed will be forced to pump prime out of their debt issues. The trend has already been set as central banks have become net buyers instead of net sellers of gold as they diversified out of dollars. PIIGS collectively own 3,000 tons of gold and Italy, which owns the most at 2,400 tons, had used gold as collateral. Therefore, this could entice China to extend its assistance to euro zone countries, via swapping gold for cash.
Read more here: Kinross Gold Corporation (KGC) Part 1

3 Up-Trending Smart Money Picks Trading the Week of Oct. 31

Common wisdom tells us that we should ride on the coattails of institutional investors such as hedge fund or mutual fund managers (aka smart money) as they have the sophisticated research and competitive edge over retail investors. Therefore this article will draw on Greenlight Capital’s investment short idea on Green Mountain Coffee Inc. (GMCR). Instead, we will focus on long ideas, notably up-trending coffee stocks. More on the investment thesis here: http://dealbook.nytimes.com/2011/10/17/an-investor-creates-a-tempest-in-a-coffee-cup/?ref=business Read more here: 3 Up-Trending Smart Money Picks Trading the Week of Oct. 31

4 Up-Trending Smart Money Picks under $10 the Week of Oct. 24

Common wisdom tells us that we should ride on the coattails of institutional investors such as hedge fund or mutual fund managers (aka smart money) as they have the sophisticated research and competitive edge over retail investors. Therefore this article will draw on Pershing Square’s investment idea on the rebound of housing market, particularly on Fortune Brands Home & Security (FBHS.N). More on the investment thesis here: http://uk.reuters.com/article/2011/10/19/us-hedgefunds-ackman-idUKTRE79H6GK20111019 Read more here: 4 Up-Trending Smart Money Picks under $10 the Week of Oct. 24