James Harden and Alpha

James Harden and Alpha

I played high school basketball in Indiana.  I won a few honors, but was broadly mediocre, and certainly not NCAA D1 material.

Groundhog Day and Overnight Returns

Groundhog Day and Overnight Returns

Over the past few years, some of the finance literature has started addressing the phenomenon, if not the apparent puzzle, of overnight returns (close-to-open) vs. intraday returns (open-to-close).

Debiasing and Alpha

Debiasing and Alpha

We manage a concentrated portfolio of investment ideas.  We, essentially, try to be objective about identifying specific instances where Mr. Market may be overreacting or underreacting to particular fundamental phenomenon. 

Peak “Peak Car” ?

Peak “Peak Car” ?

Disruption in the auto industry is a very hot topic. The embers started burning back in 2005 when Tesla dropped a powertrain into a Lotus Elise, then things started heating up in 2012 when Google drove a Prius across Nevada, without a driver; and then they started blazing in 2014 after Uber did a valuation round at $18 billion.

The Right Way

The Right Way

Following on our last post “The First Step to Regaining Credibility” we wanted to quickly highlight that the difference between the fee structure of a large, diversified, purportedly active fund and a smaller, concentrated, active fund.

The First Step to Regaining Credibility

The First Step to Regaining Credibility

As equity indices romped higher throughout most of the last ten years, the long-short hedge fund industry increasingly came under attack.  

The Futility of Market Timing

The Futility of Market Timing

We are not big fans of market timing.  Those that profess to have such a skill before the fact often always turn out not to have had much skill in hindsight.  Of those that do turn out to appear to have skill, that was actually supposed to happen. 

123 Years of the Dow

123 Years of the Dow

Presented without comment.  

Histogram.jpg

Summary stats and methodology.

Summary Table.jpg


The views and opinions expressed in this post are those of the post’s author and do not necessarily reflect the views of Albert Bridge Capital, or its affiliates. This post has been provided solely for information purposes and does not constitute an offer or solicitation of an offer or any advice or recommendation to purchase any securities or other financial instruments and may not be construed as such. The author makes no representations as to the accuracy or completeness of any information in this post or found by following any link in this post. 

Sweet Emotion?

Sweet Emotion?

The S&P is down nearly 20% since the 20thof September, turning a lovely and respectable 11.2% total return YTD into an excruciating 10.4% loss.  In Europe, the pain has been even more severe.  In the UK, the FTSE 100 is down 14.8% YTD; meanwhile the French CAC 40 is down 14.7%, and the German DAX 30 is down 21.9%.

Share Buybacks, Bad Companies, and Bear Markets

Share Buybacks, Bad Companies, and Bear Markets

The star has fallen for a few companies out there, and for those that had previous share buyback programs, there have been some of the predictable “see I told you so” articles written about them.

Keeping Calm and Carrying On

Keeping Calm and Carrying On

October unleashed a storm upon financial markets.  Here in Europe, we hadn’t had one since Brexit, but had many before then, and will surely have many more.  Bad weather is a feature of investing, and as the stewards of long-term capital, we need to balance action and inaction during these bouts of market turmoil. 

We’d Rather Not Sleep

We’d Rather Not Sleep

There is a tilt in our portfolio toward value stories where we think the consensus investor is biased against processing improving fundamentals. 

Factor Timing, Should You Try?

Factor Timing, Should You Try?

These are our two cents on whether you, or we, or anyone else can pick the perfect time to increase or decrease exposure to a portfolio of factors like value, quality, or momentum. 

The Mathematics of Maintaining Bet Size

The Mathematics of Maintaining Bet Size

As we wrote in “Half-hearted is half-minded – December 2017” we aren’t big fans of dipping our toes in the water when entering a position, nor of timidly reducing when exiting.   If we are right more often than we are wrong, it might feel better to inch in or inch out of a position, but it is a suboptimal strategy. 

The Grandfather of Behavioural Investing?

The Grandfather of Behavioural Investing?

Benjamin Graham is considered by many as a founding father of value investing. Upon a re‐read of the seminal Security Analysis, which he and David Dodd first published in 1934, one learns that many of Graham’s insights were not simply confined to balance sheets and income statements. In fact, he devoted a significant effort to such topics as psychology, overreaction, under‐reaction, and the consensus view. 

On Sexual Chocolate and Semi-Annual Reporting

On Sexual Chocolate and Semi-Annual Reporting

Following on the tweet below by President Trump, there is again a lot of discussion of the merits of quarterly reporting, potential corporate short-termism, and the impact it might have on managerial decision-making.

Island Economies and Risk

Island Economies and Risk

In describing a simplistic example of portfolio theory, some economists – such as Burton Malkiel in A Random Walk Down Wall Street – will refer to an example of a theoretical simple island economy.