DENALI INVESTORS, LLC
|
|
- Dustin Dean
- 5 years ago
- Views:
Transcription
1 April 17, 2008 To: Re: All Limited Partners First Quarter 2008, Letter to Partners Dear Partners: Please find below material information regarding Denali Investors funds. Performance Denali Investors S&P 500 (Total Return) 2008 Q1 Performance 6.6% 9.9% 2008 Year-to-Date Performance* 6.6% 9.9% Total Return Since Inception** 8.2% 13.8% Annualized Return Since Inception** 18.6% 30.1% * Through March 31, ** Return from inception November 2007 The S&P 500 records worst start to a year in its history was the headline of a Financial Times article on February 6 th, As investors, we should be thrilled. In this environment we will find tremendous opportunity, that of a low-risk and high-reward nature. The market seems willing to offer us increasingly attractive situations, and we are willing to wait for them. In fact, there is a good chance the best is still to come. Default rates and bankruptcies are creeping, but still well below the historic average. Corporate profitability is receding, but still well above the historic average. In the US, homeowners pulled out $1 trillion from their homes each year over the past few years and simply spent it (US GDP is $14 trillion). Today, home prices are still more than double the average real price in the history of the US. If prices revert to the mean, this implies home prices must fall by half or inflation must eat away the value. Either way, the result is the same. Any reasons themselves are less interesting than the bargains they create. Like a kid in a candy store, our favorite pieces of candy may become available at big discounts, or perhaps be given away for free. Mr. Market can be a generous fellow. As we look ahead, we should remember the following: 1
2 Your best money is made in bear markets; you just don t know it at the time. The only people who pick bottoms are liars. General Comments This section provides an update on our special situation investments. Special situations include misunderstood and mispriced companies, spin-offs, restructurings, bankruptcies, distressed securities, distressed bonds, merger arbitrage, etc. The advantage of allocating capital to these special situations is two fold: 1) The risk reward ratio can be highly favorable. In many cases, a special situation unlocks preexisting value that has been embedded or ignored by the market. 2) The unlocking of value is not correlated to the stock market, but rather through company level actions and outcomes. Special Situation 1: Spin-Out From Q4 2007: In this situation, Parent Co. (PCo) will spin out Subsidiary Co. (SCo) to shareholders. PCo owns over 80% of SCo, which is already public. PCo trades at $10 per share. The value of the spun out shares is $5 per share. Hence you are getting the PCo business for $5 per share. When one does the math, it becomes apparent that a fair valuation for the PCo stub is over $8 per share, which represents 60% upside. Again, the gain results from the spin out of SCo shares, and is an unlocking of pre-existing value rather than a creation of new value. UPDATE: In the first quarter, the investment has generally been unremarkable in that the price has been mostly flat. This investment will be given more time to develop. Special Situation 2: Value Activist From Q4 2007: In this situation, the Company (Co) is trading at a price that is far below its intrinsic value. Co is at $10 per share. There are three main drivers of embedded value in this situation. 1) Given an incredibly valuable real estate portfolio, there is about $10 per share in real estate value available for sale-leaseback. 2) The company owns almost all company units and can refranchise the majority for $10 15 per share. The residual royalties for just the refranchising alone are worth about $0.50 per year, or say $5 in conservative present value. 3) Operations are substandard and have much room for improvement. The changes that will take place at the operating level are of material importance and will be led by a highly successful team (not the previous 2
3 management team). Incremental margin expansion creates additional value, but let s assume this results in $0 value if not successful to $5 if there is some value created. The combined results unlock and create value in the range of $20 35 per share. UPDATE: The proxy contest was successful, and two Board seats were won. I have been engaged in a productive dialogue with the Board and the probability shareholder friendly steps will be made this year is favorable. However, in the interim, the share price has traded down with the sector, which is less a concern and more an opportunity. Special Situation 3: Restructuring From Q4 2007: In this situation, the Company (Co) is undergoing material structural changes. Co has three main businesses and has sold two of them. Co trades at $10 per share and the company will return, via a special dividend, $7 to shareholders. After the fact, Co will still have $2.50 per share in net cash. This means you pay $0.50 for the remaining business. At $0.50, this implies a price of only 1 2x EV/EBITDA. But there is more. Not only do you get the business at only 1-2x EBITDA, you also get $12 per share in NOLs. A conservative present value calculation yields $3-4 per share. Therefore, you are getting paid $ to take the business! UPDATE: This investment has played out in text-book fashion. The special dividend returned half of the share price and the ex-dividend stock price has moved up by about 1/3 since then. I was somewhat surprised at how quickly value has been recognized. The stock is still cheap and continues to be monitored. Special Situation 4: Negative Stub Pair Trade From Q4 2007: In this situation, the Parent Co. (PCo) trades at $10 per share. PCo, however, owns $20 per share in a majority controlled and publicly traded subsidiary, SCo. If we assume PCo (ex SCo value) is worth absolutely nothing, this implies PCo stock, due to SCo value, is worth $20! In order to unlock value, management is pursuing a sale of its largest PCo segment, which has been losing money. The chairman owns a very large stake in the PCo and has recently revealed a very large stake in the SCo. My sense is that the SCo stake was taken to maintain control in the event of a spinout of SCo. The unfolding of these events will unlock the tremendous embedded value in PCo. As such, we are long PCo and short SCo in order to earn the collapsing spread. UPDATE: The PCo did sell its large, money losing division during the quarter. Once the market understands the forward metrics versus the rear-view mirror database numbers, the spread should collapse further. In addition, a tax-free spin out would be a tremendous catalyst. During the quarter, we took a net long position in PCo. 3
4 Special Situation 5: Buy One, Get Three Free In this situation, the Company trades at $10 per share and has two businesses that contribute similarly to cash flow. At the current price, 1) the first business is at half price, 2) the second business is free, and 3) liquidation value for the combined company is a double. So in a worst case scenario, one gets a double on the investment. Also, if an event, which has a material chance of occurring, actually does occur, the remaining business is then created at a negative enterprise value. To be clear, this means we would be paid (not pay) to take the business, which happens to be a consistent, profitable business at that. Special Situation 6: Heads We Win, Tails We Don t Lose In this situation, the Company traded at $10 per share. Due to a potentially troublesome merger obligation, the company traded down to bankruptcy levels. Unencumbered, the upside was five to ten-fold. The insurance of a position in the target company provided a natural and cheap hedge in the event of an unfavorable ruling. During the quarter, the deal broke and the stock has moved materially since then. In this market, a favorable deal outcome would not get full credit anyway, so there was no harming in waiting. The Company is still cheap. Investing in these special situations goes back to the core of our investment framework. This is especially relevant in the current environment, one in which many are concerned about subprime and recession. These examples should help demonstrate that Denali's results will be determined by the outcome of these individual opportunities, not the noise in the overall stock market. Ironically, it is more like gambling, and less like investing, to put money blindly into broader indexes. Again, it is not the short term performance of the stock market or the fund that matters to us. The only reason Denali was started was to provide absolute returns and beat the market over the long term. I believe these types of investments position us very well to do just that. Website Update I have posted letters and documents to the site so that you may refer to them at your discretion. To view, please visit The user id is "mister" and the password is "market". A Special Thanks to Our Investors 4
5 Denali Investors is fortunate to 1) be extremely selective in the manner we make investments, and 2) have partners with a long-term value perspective in combination with outstanding professional and personal character. The firm is lucky, and rare, in this regard. One of the most important differences is that our investor base understands that a stock at a 75% discount to intrinsic value can change to a 70% or 80% discount, simply due to short-term noise. The short-term 20% move from the entry point is understood as largely meaningless and that the eventual realization of intrinsic value is our focus. It is a true pleasure to go to work everyday on your behalf. I thank you for your trust and support. And thank you for the referrals! Next Opening Openings for both the Accredited and Offshore Fund are on a monthly basis and for the upcoming quarter are: May 1, June 1, and July 1. Existing partners of either fund can add assets in increments of $50,000 at each opening. The minimum initial investment for DIAF is $100,000. To invest in the fund one must be an accredited investor as defined by the SEC. The next opening is on the 1 st of each month. The minimum initial investment for the DIOL is $100,000. To invest in the Offshore Fund, one must be a non-us accredited offshore investor or tax-exempt account such as IRAs. The next opening is on the 1 st of each month. Please note that all new assets received are subject to the two-year lockup period. Funds received by May 1, 2008, for example, will be open for redemption on May 1, Recommended Timetable if Considering a Subscription Subscribing assets into a partnership is fairly simple, but does require some lead time. Our professional associates at Citi are very knowledgeable and can help facilitate with the finer points of the transfer and subscription process. Please allow at least a one-month window to provide ample time. 5
6 The Ratio In the last quarterly letter, we considered the issue of volatility. Appendix A of this letter contains the next part of the discussion and deals with the spectrum of risk-reward relationships. As always, should you have any questions or follow up, please feel free to contact me anytime at or kbyun@denaliinvestors.com. Respectfully, kbyun@denaliinvestors.com 6
7 Appendix A: The Ratio The existence of investment opportunities with The Ratio stands in direct contrast to the classic risk-reward model. In the previous two investor letters from Q3 and Q4 2007, we established: 1) Conclusion: Cheap stocks have lower volatility (beta) and higher expected returns and expensive stocks have higher volatility (beta) and lower expected returns. 2) Conclusion: If a stock is cheap (measured against intrinsic value), high volatility can produce low risk and high expected returns 3) Risk: A permanent loss of capital, not short term price movements or beta In the previous letter (Q4 2007), we established that risk is not beta, but rather the permanent loss of capital. When defined in this manner, the risk-reward relationship is actually negatively correlated, meaning the risk-reward relationship line moves down and to the right. Return = Reward Risk = Permanent Loss That said, let us consider scenarios that falls into three broad categories below. Category 1: Category 2: Category 3: Downside > Upside, (i.e. win $10 or lose $20 with equal probability) Downside ~ Upside, (i.e. win $10 or lose $10 with equal probability) Downside < Upside, (i.e. win $20 or lose $10 with equal probability) 7
8 Visually: 1. Risk* > Reward 2. Risk* = Reward 3. Risk* < Reward * Risk = permanent loss of capital, not volatility (beta) These three categories capture most situations (in stocks as well as in life). Put simply: Category 1: Bad Deals (Expensive) Category 2: Fair Deals (Fair) Category 3: Good Deals (Cheap) The Ratio I consider an investment attractive if there is at least a 5 to 1 ratio of upside to downside. This means that if an investment could fall 20% in price (permanently), then we would require at least 100% upside potential. If an investment could fall just 1% in price (permanently), then we would require at least 5% upside potential. Category 3 Good Deals By sticking with opportunities that have an attractive ratio within Category 3, we are putting ourselves in a great position to earn outsized returns. Efficient market followers would have you believe, incorrectly, that good deals in the stock market do not exist. If the price of already interesting opportunities fall further and the fundamentals have not changed, then the lower price provides an even more attractive opportunity. In the extreme case of Category 3, there is no downside, and there is just upside. That is a ratio that is tough to beat and these situations do not come around often. How is this possible? Well, at times the market is so pessimistic or decoupled from reality, companies will trade at valuations far below 8
9 the most conservative liquidation values. In this case, the stock might trade down in the interim, but the investor is very secure even in a terminal scenario for the company. Category 1 Bad Deals This group has more downside than upside. It is a good place to look for shorts. It is an uphill battle given one is fighting the average annual gain of the market. However, if one can apply The Ratio to grossly overvalued stocks with catalysts, then we have found an attractive potential investment. Category 2 Fair Deals Most stocks fall in Category 2. This group contains stocks that are not compelling, as they are already close to intrinsic value. This is not to say they are not great companies. They might very well be excellent companies, but being a great company does not always mean being a great investment. People invest in Category 2 for many reasons, sometimes for no other reason than they are required to by their fund s institutional mandate. Based on the discussion above, we can summarize: Conclusion: A potential investment is worth considering if it has The Ratio, which is upside to downside ratio of at least 5 to 1. The idea of The Ratio is not new and has been encoded in one form or another in the thoughts of value investors past and present: Benjamin Graham called it a Margin of Safety. Warren Buffett said Rule #1 - Don t lose money. Rule #2 - Don t forget Rule #1. Marty Whitman said Safe and cheap. Mohnish Pabrai said Heads I win, tails I don t lose much. Mark Sellers said Worry about downside, and upside will take care of itself. This is value investing s biggest open secret. It is the concept that makes investing quite simple, but not easy. 9
10 In summary, in the Q3 2007, Q4 2007, and Q letters, we have established several important conclusions: 1) Conclusion: Cheap stocks have lower volatility (beta) and higher expected returns and expensive stocks have higher volatility (beta) and lower expected returns. 2) Conclusion: If a stock is cheap (measured against intrinsic value), high volatility can produce low risk and high expected returns 3) Risk: A permanent loss of capital, not short term price movements or beta 4) Conclusion: A potential investment is worth considering if it has The Ratio, which is upside to downside ratio of at least 5 to 1. 10
DENALI INVESTORS, LLC
January 16, 2008 To: Re: All Limited Partners Fourth Quarter and Calendar Year End 2007, Letter to Partners Dear Partners: Please find below material information regarding Denali Investors funds. Performance
More informationDENALI INVESTORS, LLC
July 02, 2009 To: Re: All Limited Partners Second Quarter 2009, Letter to Partners Dear Partners: Please find below material information regarding Denali Investors funds. Performance Denali Investors S&P
More informationDENALI INVESTORS, LLC
July 21, 2013 To: Re: All Limited Partners Second Quarter 2013, Letter to Partners Dear Partners: Please find below material information regarding Denali Investors funds. PERFORMANCE Denali Investors S&P
More informationDENALI INVESTORS, LLC
January 14, 2011 To: Re: All Limited Partners Fourth Quarter 2010, Letter to Partners Dear Partners: Please find below material information regarding Denali Investors funds. PERFORMANCE Denali Investors
More informationEDITOR S CORNER. Robert Litterman Executive Editor
EDITOR S CORNER Robert Litterman Executive Editor Who Should Hedge Tail Risk? In a somewhat ironic turn of events, many investment banks began selling insurance against equity tail risk to institutional
More informationIs The Increase In Volatility Signaling A Dangerous Market Environment?
Introduction Is The Increase In Volatility Signaling A Dangerous Market Environment? November 14, 2016 by Chuck Carnevale of F.A.S.T. Graphs Over the last several weeks stock price volatility has increased
More informationSMART PLANNING FOR SMART PEOPLE. guide to investing
SMART PLANNING FOR SMART PEOPLE guide to investing 2 GUIDE TO INVESTING 3 INTRODUCTION Contents What does investing mean? 4 Understanding your needs and requirements 6 Understanding risk 8 Spreading the
More informationEvent Driven. Hedge Fund Strategies. Originally Published Q4 / 2014 Updated Q2 / Customized Hedge Fund Portfolio Soutions for Advisors
Hedge Fund Strategies Event Driven Originally Published Q4 / 2014 Page 1 Hedge Fund Strategies Event Driven 3 4 5 6 7 Introduction What are Event Driven Funds? Event Driven Sub Strategies The Advantages
More informationJoel Greenblatt: The Opportunities for Active Managers are Getting Better
Joel Greenblatt: The Opportunities for Active Managers are Getting Better April 3, 2017 by Robert Huebscher Joel Greenblatt serves as managing principal and co-chief investment officer of Gotham Asset
More informationWe have seen extreme volatility for commodity futures recently. In fact, we could make a case that volatility has been increasing steadily since the original significant moves which began in 2005-06 for
More informationDENALI INVESTORS, LLC ANNUAL MEETING 2009
DENALI INVESTORS, LLC ANNUAL MEETING 2009 DENALI INVESTORS, LLC An Uncommon Fund Modeled after the original Warren Buffett Partnerships hedge fund of the 1950 s Value-Based Special Situations Opportunistic
More informationInvesting Using Call Debit Spreads
Investing Using Call Debit Spreads Terry Walters February 2018 V11 I am a long equities investor; I am a directional trader. I use options to take long positions in equities that I believe will sell for
More information2 GUIDE TO INVESTING
GUIDE TO INVESTING At Intrinsic our approach to investment advice is based on clearly understanding your financial situation, your goals, and how much risk you are prepared to take with your money. 2 GUIDE
More informationWhat is Risk? How has the risk questionnaire been designed? Sean Sample and Lisa Sample. 2 February 2017
Sean Sample and Lisa Sample 2 February 2017 Attitude to Risk Report for: Sean Sample and Lisa Sample Prepared By: Jerry Rolls It is important to understand the level of risk you are prepared to take with
More informationInvesting Using Call Debit Spreads
Investing Using Call Debit Spreads Strategies for the equities investor and directional trader I use options to take long positions in equities that I believe will sell for more in the future than today.
More informationBONHOEFFER CAPITAL MANAGEMENT
BONHOEFFER CAPITAL MANAGEMENT Dear Partner, Welcome to the Bonhoeffer Fund, LP. As the fund manager, I want to humbly thank you for entrusting me with the responsibility of investing and growing your hard-earned
More information: FES Chief Investment Officer Report on Q Results_V_2.1
Memorandum To From : Forum Staff : BW Date : May 3 rd, 2018 Subject : FES Chief Investment Officer Report on Q1 2018 Results_V_2.1 This report of the CIO has been put together for stakeholders interested
More informationIntro to Trading Volatility
Intro to Trading Volatility Before reading, please see our Terms of Use, Privacy Policy, and Disclaimer. Overview Volatility has many characteristics that make it a unique asset class, and that have recently
More informationThe 8 biggest mistakes investors make
The 8 biggest mistakes investors make Dario Michalek Vision Capital Management We are confident that the information that follows can provide compelling reasons to look hard at your investments and propel
More informationValueWalk Interview With Chris Abraham Of CVA Investment Management
ValueWalk Interview With Chris Abraham Of CVA Investment Management ValueWalk Interview With Chris Abraham Of CVA Investment Management Rupert Hargreaves: You run a unique, value-based options strategy
More informationBy JW Warr
By JW Warr 1 WWW@AmericanNoteWarehouse.com JW@JWarr.com 512-308-3869 Have you ever found out something you already knew? For instance; what color is a YIELD sign? Most people will answer yellow. Well,
More informationInsights from Morningstar COPYRIGHTED MATERIAL
Insights from Morningstar COPYRIGHTED MATERIAL Lesson 301: The Fat-Pitch Strategy All I can tell them is pick a good one and sock it. Babe Ruth In baseball, a batter who watches three pitches go past
More informationIf you are over age 50, you get another $5,500 in catch-up contributions. Are you taking advantage of that additional amount?
Let s start this off with the obvious. I am not a certified financial planner. I am not a certified investment counselor. Anything I know about investing, I ve learned by making mistakes, not by taking
More informationInvestor Presentation April 2018
Investor Presentation April 2018 Hayden Capital, LLC 79 Madison Ave, 3 rd Floor New York, NY. 10016 Fred Liu, CFA Managing Partner Office: (646) 883-8805 Mobile: (513) 304-3313 Email: fred.liu@haydencapital.com
More informationA Different Take on Money Management
A Different Take on Money Management www.simple4xsystem.net Anyone who read one of my books or spent time in one of my trade rooms knows I put a lot of emphasis on using sound Money Management principles
More informationTailor made investment approach
WHAT DOES INVESTING MEAN? 03 GUIDE TO INVESTING - Tailor made investment approach 02 GUIDE TO INVESTING Contents WHAT DOES INVESTING MEAN? 3 UNDERSTANDING YOUR NEEDS AND REQUIREMENTS 5 UNDERSTANDING RISK
More informationMARKET COMMENTARY. Liquidations September Horizon Kinetics LLC
Liquidations 2013 Horizon Kinetics LLC This month s commentary concludes our series on predictive attributes with a discussion of liquidations. These are an extremely interesting type of investment, but
More informationBasic Tools of Finance (Chapter 27 in Mankiw & Taylor)
Basic Tools of Finance (Chapter 27 in Mankiw & Taylor) We have seen that the financial system coordinates saving and investment These are decisions made today that affect us in the future But the future
More informationHow Do You Calculate Cash Flow in Real Life for a Real Company?
How Do You Calculate Cash Flow in Real Life for a Real Company? Hello and welcome to our second lesson in our free tutorial series on how to calculate free cash flow and create a DCF analysis for Jazz
More informationsmart money, crowded trades?
by Kristofer Kwait, Managing Director, Head of Research, and John Delano, Director, Hedge Fund Strategies Group, Commonfund smart money, crowded trades? For investors building multi-manager portfolios,
More informationVIX Hedging September 30, 2015 Pravit Chintawongvanich, Head of Risk Strategy
P R O V E N E X P E R T I S E. U N B I A S E D A D V I C E. F L E X I B L E S O L U T I O N S. VIX Hedging September 3, 215 Pravit Chintawongvanich, Head of Risk Strategy Hedging objectives What is the
More information4.25 ¾ 4.19 FG March 2018 Wheat ¾ Pivotal new Contract Low 4.02 ½ 5 day chart. Down from last week same day Daily chart... Down Weekly
s 9:50 pm Chicago time 12/11/17 December 12, 2017 March 2018 Corn 3.56 3.52 ¾ FG --------------3.48 ¼ Pivotal new Contract Low 3.43 ¾ 5 day chart. Down from last week same day Daily chart. Down Weekly
More informationFinding outperforming managers
Finding outperforming managers Randolph B. Cohen MIT Sloan School of Management 1 Money Management Skeptics hold that: Managers can t pick stocks and therefore don t beat the market It s impossible to
More informationWhy You Should Invest in Stocks COPYRIGHTED MATERIAL
Why You Should Invest in Stocks COPYRIGHTED MATERIAL Lesson 101: Stocks Versus Other Investments Some regard private enterprise as if it were a predatory tiger to be shot. Others look upon it as a cow
More informationWorkbook 2. Banking Basics
Workbook 2 Banking Basics Copyright 2017 ABC Life Literacy Canada First published in 2011 by ABC Life Literacy Canada All rights reserved. ABC Life Literacy Canada gratefully thanks Founding Sponsor TD
More informationSearching For Values (and Yield) Among Distressed Debt Issuers
June 21, 2012 Thank you for reading Green Thought$. It is our privilege to provide you with our insight on current financial market events and our outlook on topics relevant to you. Searching For Values
More informationHedge Funds: Past, present and future By Rene M Stulz, Journal of Economic Perspectives, Spring 2007
Hedge Funds: Past, present and future By Rene M Stulz, Journal of Economic Perspectives, Spring 2007 Hedge funds are unregulated pools of money managed with a great deal of flexibility. Thus, hedge fund
More informationStudent Guide: RWC Simulation Lab. Free Market Educational Services: RWC Curriculum
Free Market Educational Services: RWC Curriculum Student Guide: RWC Simulation Lab Table of Contents Getting Started... 4 Preferred Browsers... 4 Register for an Account:... 4 Course Key:... 4 The Student
More informationSAMURAI SCROOGE: IMPORTANT CONCEPTS
SAMURAI SCROOGE: IMPORTANT CONCEPTS CONTENTS 1. Trend vs. swing trading 2. Mechanical vs. discretionary trading 3. News 4. Drawdowns 5. Money management 6. Letting the system do the work 7. Trade journal
More information2012 US HIGH YIELD MARKET OUTLOOK
Q1: What are the impacts of the prolonged interest rate environment, fiscal budget tightening and possible QE3 to the US High Yield Market? So, it's really impossible to look at each of those variables
More informationGuide to Options Trading
Guide to Options Trading Easy Strategies that will Put You in the Money Fast By Jacob Mintz, Chief Analyst, Cabot Options Trader As a subscriber to Cabot Options Trader, I hope you will benefit from my
More informationThe Long-Term Investing Myth
The Long-Term Investing Myth January 3, 2017 by Lance Roberts of Real Investment Advice During my morning routine of caffeine supported information injections, I ran across several articles that just contained
More informationReal Estate Private Equity Case Study 3 Opportunistic Pre-Sold Apartment Development: Waterfall Returns Schedule, Part 1: Tier 1 IRRs and Cash Flows
Real Estate Private Equity Case Study 3 Opportunistic Pre-Sold Apartment Development: Waterfall Returns Schedule, Part 1: Tier 1 IRRs and Cash Flows Welcome to the next lesson in this Real Estate Private
More informationHOW TO IMPROVE YOUR TRADING RESULTS STRAIGHT AWAY
GUIDE ON HOW TO IMPROVE YOUR TRADING RESULTS STRAIGHT AWAY Learn an extremely important, yet simple tweak that can dramatically improve your performance IMPROVE YOUR RESULTS TODAY FOTISTRADINGACADEMY.COM
More informationChapter 6: The Art of Strategy Design In Practice
Chapter 6: The Art of Strategy Design In Practice Let's walk through the process of creating a strategy discussing the steps along the way. I think we should be able to develop a strategy using the up
More informationValueWalk Interview With Ravee Mehta Of Nishkama Capital LLC
ValueWalk Interview With Ravee Mehta Of Nishkama Capital LLC ValueWalk Interview With Ravee Mehta Of Nishkama Capital LLC ValueWalk: You re the author of The Emotionally Intelligent Investor: How self-awareness,
More informationInvesting With Synthetic Bonds
Investing With Synthetic Bonds Creating and managing forward conversion arbitrage and collared stock positions I use options to take long positions in equities that I believe will sell for more in the
More informationPenny Stock Guide. Copyright 2017 StocksUnder1.org, All Rights Reserved.
Penny Stock Guide Disclaimer The information provided is not to be considered as a recommendation to buy certain stocks and is provided solely as an information resource to help traders make their own
More informationECO155L19.doc 1 OKAY SO WHAT WE WANT TO DO IS WE WANT TO DISTINGUISH BETWEEN NOMINAL AND REAL GROSS DOMESTIC PRODUCT. WE SORT OF
ECO155L19.doc 1 OKAY SO WHAT WE WANT TO DO IS WE WANT TO DISTINGUISH BETWEEN NOMINAL AND REAL GROSS DOMESTIC PRODUCT. WE SORT OF GOT A LITTLE BIT OF A MATHEMATICAL CALCULATION TO GO THROUGH HERE. THESE
More informationCrestmont Research. Rowing vs. The Roller Coaster By Ed Easterling January 26, 2007 All Rights Reserved
Crestmont Research Rowing vs. The Roller Coaster By Ed Easterling January 26, 2007 All Rights Reserved Why are so many of the most knowledgeable institutions and individuals shifting away from investment
More informationPRINCE HENRY NAVIGATOR I LLC
PRINCE HENRY NAVIGATOR I LLC 7226 Aynsley Lane Phone: (703)790-3655 McLean, Virginia 22102 Fax: (703) 790-3656 Cell: (917) 509-2161 Via email: Dear : Disclaimer This letter is an attempt to lay out what
More informationGuide to Expert Options Trading Advanced Strategies that will Put You in the Money Fast. By Jacob Mintz, Chief Analyst, Cabot Options Trader Pro
Guide to Expert Options Trading Advanced Strategies that will Put You in the Money Fast By Jacob Mintz, Chief Analyst, Cabot Options Trader Pro As a subscriber to Cabot Options Trader Pro, I hope you will
More informationThings That Matter for Investors II
II By: Robert Klosterman, CEO & Chief Investment Officer E arlier this year investors had many concerns about the economy, investment markets, US politics and global geo-political environments. Oil prices
More informationHow Risky is the Stock Market
How Risky is the Stock Market An Analysis of Short-term versus Long-term investing Elena Agachi and Lammertjan Dam CIBIF-001 18 januari 2018 1871 1877 1883 1889 1895 1901 1907 1913 1919 1925 1937 1943
More informationValuation Interpretation and Uses: How to Use Valuation to Outline a Buy-Side Stock Pitch
Valuation Interpretation and Uses: How to Use Valuation to Outline a Buy-Side Stock Pitch Hello and welcome to our next lesson in this final valuation summary module. This time around, we're going to begin
More informationHow does a trader get hurt with this strategy?
This is a two part question. Can you define what volatility is and the best strategy you feel is available to traders today to make money in volatile times? Sure. First off, there's essentially a very
More informationExploiting the Inefficiencies of Leveraged ETFs
Exploiting the Inefficiencies of Leveraged ETFs [Editor s Note: Here at WCI we try to keep things as simple as possible, most of the time. Not today though. Today we re going to be discussing leveraged
More informationMANAGING INVESTMENTS IN AN EVER-CHANGING WORLD
MANAGING INVESTMENTS IN AN EVER-CHANGING WORLD When the facts change, change your mindset OMRI THOMAS MANAGER OF THE NEDGROUP INVESTMENTS OPPORTUNITY FUND The world we live in today is changing at a sometimes
More information2013 Hedge Fund. Compensation Report SAMPLE REPORT
2013 Hedge Fund Hedge Fund Compensation Report Compensation Report JobSearchDigest.com SAMPLE REPORT HedgeFundCompensationReport.com Introduction It is our pleasure to share with you, for the sixth time,
More informationAs Good as Gold. April 24, Be fearful when others are greedy and greedy when others are fearful. Warren Buffett
As Good as Gold April 24, 2013 Be fearful when others are greedy and greedy when others are fearful. Warren Buffett Whenever one of our investments experiences a significant price correction, we regard
More informationChristiano 362, Winter 2006 Lecture #3: More on Exchange Rates More on the idea that exchange rates move around a lot.
Christiano 362, Winter 2006 Lecture #3: More on Exchange Rates More on the idea that exchange rates move around a lot. 1.Theexampleattheendoflecture#2discussedalargemovementin the US-Japanese exchange
More informationCommentary March 2013
Market Price of Bond Market Price of Bond Commentary March 2013 Interest Rates: Creeping Higher Interest rates and bond yields are at multi-generational lows and are expected to trend higher over the next
More informationMy Favorite Two Corporate Finance Puzzles
My Favorite Two Corporate Finance Puzzles Harold Bierman My favorite two corporate finance puzzles are: 1. The dividend puzzle. 2. The capital structure puzzle. Long ago, Fischer Black (1976) wrote the
More informationBINARY OPTIONS: A SMARTER WAY TO TRADE THE WORLD'S MARKETS NADEX.COM
BINARY OPTIONS: A SMARTER WAY TO TRADE THE WORLD'S MARKETS NADEX.COM CONTENTS To Be or Not To Be? That s a Binary Question Who Sets a Binary Option's Price? And How? Price Reflects Probability Actually,
More informationHow Do You Measure Which Retirement Income Strategy Is Best?
How Do You Measure Which Retirement Income Strategy Is Best? April 19, 2016 by Michael Kitces Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those
More informationThe Easiest Way To Make Money In Real Estate
The Easiest Way To Make Money In Real Estate Introduction Here we go You re interested in making money in real estate. That s why you re reading this report. I know your goal You want a better return than
More informationMonthly Treasurers Tasks
As a club treasurer, you ll have certain tasks you ll be performing each month to keep your clubs financial records. In tonights presentation, we ll cover the basics of how you should perform these. Monthly
More informationSTOP RENTING AND OWN A HOME FOR LESS THAN YOU ARE PAYING IN RENT WITH VERY LITTLE MONEY DOWN
STOP RENTING AND OWN A HOME FOR LESS THAN YOU ARE PAYING IN RENT WITH VERY LITTLE MONEY DOWN 1. This free report will show you the tax benefits of owning your own home as well as: 2. How to get pre-approved
More informationAN HISTORICAL PERSPECTIVE OF THE CURRENT BALANCE OF POWER BETWEEN SHAREHOLDERS AND BOARDS OF DIRECTORS
AN HISTORICAL PERSPECTIVE OF THE CURRENT BALANCE OF POWER BETWEEN SHAREHOLDERS AND BOARDS OF DIRECTORS Before we turn to a discussion of the appropriate balance of power between boards of directors and
More informationHistory of 401(k) Plans. What makes a 401(k) different?
History of 401(k) Plans In 1978, Congress decided that Americans needed a bit of encouragement to save more money for retirement. They thought that if they gave people a way to save for retirement while
More informationResponses to Otelco Shareholder Comments
Responses to Otelco Shareholder Comments As indicated in the report of Otelco shareholder views offered in the survey conducted last month, 1 the comments and questions that you offered for the company
More informationWhy Decades-Old Quantitative Strategies Still Work Today
Why Decades-Old Quantitative Strategies Still Work Today June 2, 2015 by John Reese Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor
More informationCHAPTER 6: ANSWERS TO CONCEPTS IN REVIEW
CHAPTER 6: ANSWERS TO CONCEPTS IN REVIEW 6.1 A common stock is an equity investment that represents ownership in a corporate form of business. Each share represents a fractional ownership interest in the
More informationConsiderations for a Hospital-Based ACO. Insurance Premium Construction: Tim Smith, ASA, MAAA, MS
Insurance Premium Construction: Considerations for a Hospital-Based ACO Tim Smith, ASA, MAAA, MS I once saw a billboard advertising a new insurance product co-branded by the local hospital system and a
More informationESOPs: Myths, Methods, and Mistakes
ESOPs: Myths, Methods, and Mistakes How it works The ins and outs of ESOPs Common misconceptions explained Tips and tricks Risks vs. rewards How to avoid common mistakes Contentsoduction 3 The Ins & Outs
More information2Point2 Capital Investor Update Q1 FY18
2Point2 Capital Investor Update Q1 FY18 Dear Investors, This is the fourth quarterly letter to our Investors. Our letters to you will inform you of our activities, provide an update on our performance
More informationFinance 527: Lecture 30, Options V2
Finance 527: Lecture 30, Options V2 [John Nofsinger]: This is the second video for options and so remember from last time a long position is-in the case of the call option-is the right to buy the underlying
More informationInvesting Using Bull Call or Bull Put Spreads
Investing Using Bull Call or Bull Put Spreads How I trade options as an equities investor and directional trader I use options to take long positions in equities that I believe will sell for more in the
More informationCHAPTER 17 OPTIONS AND CORPORATE FINANCE
CHAPTER 17 OPTIONS AND CORPORATE FINANCE Answers to Concept Questions 1. A call option confers the right, without the obligation, to buy an asset at a given price on or before a given date. A put option
More informationΑμοιβαία Κεφάλαια και Εναλλακτικές Επενδύσεις. Αμοιβαία Κεφάλαια, ETFs και Hedge Funds
Αμοιβαία Κεφάλαια και Εναλλακτικές Επενδύσεις Αμοιβαία Κεφάλαια, ETFs και Hedge Funds Alternative Investments Alternative assets refer to alternative asset classes (assets other then plain equities and
More informationInvesting Using Bull Call or Bull Put Spreads
Investing Using Bull Call or Bull Put Spreads How I trade options as an equities investor and directional trader I use options to take long positions in equities that I believe will sell for more in the
More informationEcon 1101 Spring Radek Paluszynski 5/8/2013
Econ 1101 Spring 2013 Radek Paluszynski 5/8/2013 Announcements Final exam: Tuesday, May 14 th, 6.30-8.30pm If you have exam conflict, there is a makeup final on Thursday, May 16 th, 10am-12pm Registration
More informationShort Selling Stocks For Large And Fast Profits. By Jack Carter
Short Selling Stocks For Large And Fast Profits By Jack Carter 2017 Disclaimer: No financial advice is given or implied. Publisher is not registered investment advisor or stockbroker. Information provided
More informationThe Bull Market: Past Peak Duration?
March 2017 The Bull Market: Past Peak Duration? BY: ANDREW SPENCE Background The strong performance of market benchmarks and the long duration assets they are built on has made 2016 a difficult year for
More informationGundlach s Forecast for 2016
Gundlach s Forecast for 2016 January 19, 2016 by Robert Huebscher Jeffrey Gundlach is a prescient and accurate forecaster. Last week, as he does each January, he offered his market outlook. But unlike
More informationThe Great Beta Hoax: Not an Accurate Measure of Risk After All
The Great Beta Hoax: Not an Accurate Measure of Risk After All May 21, 2015 by Chuck Carnevale of F.A.S.T. Graphs Every investor is concerned with risk at some level. Arguably investors in retirement are
More informationBetting on diversification. Any takers?
Betting on diversification. Any takers? February 26, 2018 Ten years ago, Warren Buffett made a decade-long wager on an S&P 500 index fund and emerged triumphant. But would we make a similar bet in today
More information10. Dealers: Liquid Security Markets
10. Dealers: Liquid Security Markets I said last time that the focus of the next section of the course will be on how different financial institutions make liquid markets that resolve the differences between
More informationModule 5. Attitude to risk. In this module we take a look at risk management and its importance. TradeSense US, April 2010, Edition 3
Attitude to risk Module 5 Attitude to risk In this module we take a look at risk management and its importance. TradeSense US, April 2010, Edition 3 Attitude to risk In the previous module we looked at
More informationTransparency: Audit Trail and Tailored Derivatives
Transparency: Audit Trail and Tailored Derivatives Albert S. Pete Kyle University of Maryland Opening Wall Street s Black Box: Pathways to Improved Financial Transparency Georgetown Law Center Washington,
More informationHOW to MAKE an EASY 100% RETURN in 27 DAYS
INVESTOR REPORT HOW to MAKE an EASY 100% RETURN in 27 DAYS on the WORLD S MOST VALUABLE COMPANY by TOM GENTILE Investor Report From: Tom Gentile For: Power Profit Trades Subscribers How to Make an Easy
More informationSample Chapter REAL OPTIONS ANALYSIS: THE NEW TOOL HOW IS REAL OPTIONS ANALYSIS DIFFERENT?
4 REAL OPTIONS ANALYSIS: THE NEW TOOL The discounted cash flow (DCF) method and decision tree analysis (DTA) are standard tools used by analysts and other professionals in project valuation, and they serve
More informationBeware the Enterprise Valuation Measure
SEPTEMBER 2016 By Tedd Powers, Senior Consultant, Fisher International Determining the value of a business requires an in-depth analysis of the current and future financial state of the company along with
More informationMiddle School Lesson Plan
Standards New York 8.2e Progressive reformers sought to address political and social issues at the local, state, and federal levels of government between 1890 and 1920. New Jersey 6.1.8.A.2.b Explain how
More informationNine Secrets To Stock Market Success! Valuable Tips From Market Pros
Nine Secrets To Stock Market Success! Valuable Tips From Market Pros Nine Secrets To Stock Market Success! Valuable Tips From Market Pros Have you ever wondered what makes some investors wildly successful,
More informationMeasurable value creation through an advanced approach to ERM
Measurable value creation through an advanced approach to ERM Greg Monahan, SOAR Advisory Abstract This paper presents an advanced approach to Enterprise Risk Management that significantly improves upon
More informationTrefzger, FIL 240 & FIL 404 Assignment: Debt and Equity Financing and Form of Business Organization
Trefzger, FIL 240 & FIL 404 Assignment: Debt and Equity Financing and Form of Business Organization Please read the following story that provides insights into debt (lenders) and equity (owners) financing.
More informationGundlach: I m Not Really Bullish on Bonds
Gundlach: I m Not Really Bullish on Bonds September 13, 2017 by Robert Huebscher Jeffrey Gundlach, one of the most respected bond managers in the world with over $100B in fixed-income assets under management,
More informationThe Fish Hook Pattern
The Fish Hook Pattern GOAL The Fish Hook Pattern is a trade entry method that is mentioned from time to time in Jim s Chartbook and on the Premium Alert Service. The idea behind the Fish Hook is that it
More informationTable of Contents. Get the latest version of this e-book here:
HOW TO VALUE STOCKS Three valuation methods explained Table of Contents Foreword... 3 Method 1: Price-Earnings multiple... 4 Method 2: Discounted Cash Flow (DCF) model... 7 Method 3: Return on Equity valuation...
More information