Drew's Views

Insights from the CIO of Albert Bridge Capital

Markets

The Times that Try Stock-Pickers’ Souls

On first principles, there is one way to generate excess stock market returns over the long term, and it isn’t to “own winners at any price.”
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Grandpa Stocks

There are young companies out there that are exciting, growing quickly, and very clearly have the world in front of them.
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Bubblicious?

COVID-19 and related counteractive policies have had an extremely negative impact on domestic and global economies. Whether or not you believe that the policies weren’t strong enough, or if they were overzealous, we are where we are.
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On Negative Oil and Futures Prices

“Whoever controls oil controls much more than oil” said John McCain in 2008. And he was right.
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In Flew Enza

World War I began in 1914, and the US declared they would join the fight in April of 1917.
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COVID-19 and Equity Markets

My wife’s family is from Tuscany, and Italian is her first language. Four years ago, she wanted to get out ofLondon for the summer, and headed over to Italy with the kids. But instead of visiting her cousins, aunts, and uncles in Florence, she chose instead to spend 40 days in Venice.
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Regulators to the Rescue?

Market authorities across many European countries have announced plans to prohibit short-selling (to varying degrees) for the foreseeable future.
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Perspective

I started an investment club in college with $100. I had seven buddies that also saved $100, so we had $800 all-in.
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Not a Bad Decade

Closing the book on a decade of equity returns.
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Finance

On the Impact of the FAMANGs

Market headlines, globally, have been dominated by the storied performance of a select few transformational, winner-take-all business models.
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Alternative Funds

Europe vs the US: Is it all about sector exposures?

In America’s Decade, we highlighted the very similar returns provided by the MSCI Europe and S&P 500 from 1980 through 2009, and the very different returns since.
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Finance

America’s Decade

When it comes to predicting the economy, we believe that speculating when things will turn is an exercise in futility and a horrible waste of time; one which meanwhile distracts us all from the task at hand.
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Finance

Prediction, Publicity, and Paul the Octopus

Unlike many other market observers, we just don’t see the point in discussing or debating the macroeconomics driving overall markets, volatility, or sentiment.
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The Sacrilegious Diaries: Measuring the Impact of Portfolio Turnover

A few weeks ago, we discussed the potential benefits of portfolio and name turnover.
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Imagine No Inflation

Many folks have now listened to this fascinating interview of the pseudonymous Jesse Livermore by Patrick O’Shaughnessy.
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I’m Volatility?

Is risk “volatility vs. a benchmark” or is risk “the potential permanent loss of capital”?
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When You Can’t Wait For Tomorrow

We’re mulling this morning over what it is that makes stock prices, and stock-picking, work.
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Peak “Peak Car” ?

Disruption in the auto industry is a very hot topic.
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The Right Way

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.
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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.
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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.
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Visualizing the Arithmetic of Active Management

It’s been said that a picture can be worth a thousand words.
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123 Years of the Dow

Presented without comment.
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Sweet Emotion?

No matter what we pretend to ourselves, even for those of us with more than ten years of investing experience, this move is painful.
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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.
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Keeping Calm and Carrying On

October unleashed a storm upon financial markets.
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Reminiscences of a Stock Operator: The Volkswagen Chronicles, Ten Years Later

In the spring of 2008, things were already wacky at Volkswagen.
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The Mathematics of Maintaining Bet Size

We aren’t big fans of dipping our toes in the water when entering a position, nor of timidly reducing when exiting.
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On Sexual Chocolate and Semi-Annual Reporting

The presupposition that quarterly earnings and guidance somehow breeds short-termism and suboptimal business strategy,
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Build a Bear?

Imagine every adult has 10% of their savings invested in “the global stock market”,
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Data Science and Alpha

As the investment community embraces data science, we should not be blind to the reality that many of our active-management peers are
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Hunting for Alpha

But Can a Stock-Picker Really Generate Alpha, and is it Luck or Skill When it Happens?
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Career Risk, Alpha, and Contrarian Investing

At our firm, one of our main goals is, very simply, to generate excess returns from equity investing without taking commensurate risks.
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God Bless the Shorts

Elon Musk made a lot of news last week, refusing to answer “boneheaded” questions from “boring” sell-side analysts.
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Sell in May, and Go Away?

We’re not inclined to automatically buy in to perceived wisdom, and you probably aren’t either;
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Horses and Stocks

Bet With The Best, Chapter 3: Crist on Value
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Unwarrented

Evidently, the closest thing we in financial markets have to Albert Einstein or Winston Churchill, is Warren Buffett.
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Fooled by Non-Randomness

Students of decision-making and bias will all have seen the work by Cornell psychologist Tom Gilovich,
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122 year Dow Jones Histogram: Putting 2017 into context

2017 was a pretty good year for the stock market. The 19th best since the Dow Jones Average was introduced in 1896.
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The Voting Machine

It all started for me over 30 years ago.
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