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Funds like this tend to outperform in bad to normal markets and underperform in highly bullish markets as they have more discipline around valuation. Warren Buf
by aaavl2821 9y ago
Funds like this tend to outperform in bad to normal markets and underperform in highly bullish markets as they have more discipline around valuation. Warren Buffett famously underperforms in very bullish markets as well
The pitch of funds like this is that for a few years out of 10, they'll underperform, and then massively outperform when everyone else is sucking. People invest in funds like this (note I don't know too much about his fund in particular but know many funds with similar styles) because when all the people who think they are expert investors bc they rode a bull market crash, these funds will be making lots of money
- dmoy 9y agoUnderperform sure, I get that. Negative performance, when you're getting like >15% s&p 500 growth for year after year? If that's what GGP is saying that's really bad.
- b4lancesh33t 9y agoBut it didn't outperform in 2008. At least not by much.
- kgwgk 9y agoLosing 9% instead of 37% is quite some outperformance. Let’s say you started with $100: ending with $91 is 44% more than ending with $63.
- deleted 9y ago[deleted]
- icedchai 9y agoA few years seems reasonable. However, they seem to underperform for most years out of 10. This is their best performing fund: https://www.hussmanfunds.com/strategic-total-return-fund/ https://www.hussmanfunds.com/strategic-total-return-fund/ On the other hand, this is their "growth" fund: https://www.hussmanfunds.com/strategic-growth-fund/ https://www.hussmanfunds.com/strategic-growth-fund/ Its performance is absolutely abysmal. What is Hussman's "PhD" in? Losing money?