October Letter - Trapeze Asset Management

[Eric50]

Always a good read.

 

Enjoy!

 

Eric

 

http://www.trapezeasset.com/trapezeasset/newsletter/TAMI_Q3_2009.pdf

[Zorrofan]

thanks for posting!

 

cheers

Zorro

[Mungerville]

I find it funny the way those guys would flaunt their returns in the Globe and Mail adds until the crisis.  And then all of a sudden, no numbers in the ads! and the ads now say something like "a recovery is underway, a recovery is underway" - as if they know. 

[Guest kawikaho]

I posted about Trapeze awhile back in a post titled something like, "Mean reversion".  I've been following these guys for quite some time.  I almost invested with them in 2007-08, but I figured after 10 years of solid out performance, there was bound to be some mean reversion.  Also, I wanted to stay in cash to avoid the housing bubble blow up.  Boy, did they ever mean revert.  They went from something like 33% CAGR for 10 years to 8-9% CAGR.  That's extremely humbling. 

 

I need to find an asset manager that:

 

1) recognizes and identifies asset bubbles

2) is able to look at macro before doing bottom up analysis

3) has some solid risk management (like cut your losses EARLY)

 

 

[Viking]

kawikaho, I do not say this to be cruel, but you may have a better chance finding the tooth fairy or santa claus (I have young kids)  ;D

[Guest Dazel]

 

"I need to find an asset manager that:

 

1) recognizes and identifies asset bubbles

2) is able to look at macro before doing bottom up analysis

3) has some solid risk management (like cut your losses EARLY)"

 

GMO- Jeremy Grantham is the best I have ever seen...Fairfax is right there as well.

 

Dazel.

 

 

 

[Guest kawikaho]

kawikaho, I do not say this to be cruel, but you may have a better chance finding the tooth fairy or santa claus (I have young kids)  ;D

 

Haha. 

 

Hi Dazel, yes, FFH is very solid.  I am waiting for (actually, hoping is more like it) a pullback before jumping back in.  I'm not much of a trader, but there is one rule I live by: sell any stock that has put in a huge move after less than a month.  And, I wish I could get in on GMO or the Quantum Fund, but I do not meet the accredited investor requirements.  I need over a million in liquidity, and I'm not there yet.