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Hedge Fund Letter Consensus
Q4 2017

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The goal of this newsletter is simple: collect as many hedge fund letters to investors as I can get my hands on and find consensus topics of discussion.

A total of 62 letters were used for this report. .

Letters are first annotated and undergo natural language processing (NLP) to identity named entities and coreferences (among other tasks) and are then pumped into a text search engine to find consensus topics among all funds. This same text search engine is available to readers to use for possibly finding additional topics of interest. Part of the annotation includes identifying new buys/sells, and existing holdings, fund performance, cash allocation, and key opinions.

Why Hedge Fund Letters?

Hedge funds with over $100 million in investable assets in the U.S. are required to filing quarterly 13F holdings reports to the SEC. These filings provide great insight and should be a part of everyone's research. You can use WhaleWisdom.com to get detailed analysis of 13F holdings and find consensus picks.

13F Limitations: 13F filings have some limitations however. For starters 13F filings aren’t due until 45-days after the quarter close date. Letters to investors are typically more timely than this. 13F filings are limited to long positions in US equities, call/put options/convertible notes and ADRs. So no disclosure of cash positions, international holdings, shorts, real estate, distressed debt, etc. You are missing the complete picture of a fund’s true investment exposure.

Hedge Fund letters don’t necessarily include all investments either, but oftentimes big stakes are disclosed in the letter along with the fund's rationale for choosing them. Hedge Fund Letters also include opinions from the manager on the overall direction of the market and on new investments.

These are the best investors in the world. Reading their letters gives us a glimpse into their thinking and methodology. We can leverage hedge funds' vast resources and knowledge without the associated cost.

Institutional & individual investors appear to be “all-in” (fully invested with little cash-on-hand)

There are clear signs of excess and “reaching” for return --Upslope Capital Management

Perhaps our favorite headline so far in the new year has been “As Stocks Reach New Highs, Investors Abandon Hedges” in the Wall Street Journal, on Jan. 8. Market complacency, as measured by the CBOE Volatility Index, VIX, at all-time lows, has set in. The fear of missing out, FOMO, is real, and no one wants to be left behind. No one except us it seems. - Artko

Fear of missing out (or “FOMO”) is one of the more powerful reasons for investor aggressiveness, and also one of the most dangerous.

Most valuation parameters are either the richest ever (Buffett ratio of stock market capitalization to GDP, price-to-sales ratio, the VIX, bond yields, private equity transaction multiples, real estate capitalization ratios) or among the highest in history (p/e ratios, Shiller cycle-adjusted p/e ratio). In the past, levels like these were followed by downturns. Thus a decision to invest today has to rely on the belief that “it’s different this time. --Oaktree

The world has become risk seeking instead of risk averse. It appears that many investors seem to be more worried about missing out than worried about losing their money.

This can be the only explanation for investors around the world purchasing assets with no dividends, no earnings, no interest payments, or asset value. --Vilas Capital

It is our belief that this desire to be the jack of all trades (and ultimately the master of none) is driven as much by a fear of missing out (or “FOMO” in twitter speak) than any rational thought. Being everywhere, no matter how thinly that spreads your acumen and capital, is a remedy to FOMO. FOMO, however, is not really a thing – it is an unproductive emotion with no tangible cost. Its remedy is simply to ignore it. -- Ewing Morris

FOMO

Fear of Missing Out is trending

Current State of the Bull Market

Various opinions on where the market is and where it is heading

I recognize on one hand that this is one of the highest-priced markets in US history. On the other hand, as a historian of the great equity bubbles, I also recognize that we are currently showing signs of entering the blow-off or melt-up phase of this very long bull market --Jeremy Grantham
the longer we go with remarkably muted volatility in the market, and the more capital that flows into passive funds, which reinforces low volatility, the more investors will become lulled into a false sense of security. This could be a classic case where stability is breeding instability --Turtle Creek

I view this particular bull market as being somewhat different in character than prior bull markets, driven as it has been by central bank accommodation and low interest rates. I also think that many active investors feel that they have been held hostage by a lack of options, and simply have no choice but to participate in the stock market even if they have reservations about high prices and low prospective return

My view is that the current market offers enough of the standard warning flags to make it more prone than average to either a significant correction or, if the right conditions were to align, a bear market. But this certainly doesn’t mean it has to happen soon. --Centaur Total Return

We think allocating a little more to Cash makes sense at this point in the cycle for a couple reasons. First, it is actually starting to yield something...

our call to action is still to largely stay invested, albeit we are starting with a little more Cash

--KKR

Since the economic recovery hasn’t been marked by excesses to the upside, when a recession eventually does occur, it doesn’t have to be extreme. In short, no boom, no bust.

The known catalysts for a market downturn – recession, ballooning inflation, much-higher interest rates, major central bank missteps, a governmental breakdown in Washington, and war – can’t be assigned probabilities that are more than modest. --Oaktree

The backdrop for equities remains quite constructive given low interest rates, continued monetary and now fiscal tailwinds and synchronized global economic and earnings growth. We continue to believe that the massive relative flows of capital into fixed income instruments over equities offers a sizeable potential for mean-reversion in favour of stock market

For what remains of the cycle, we see the greatest vulnerability in rate-sensitive sectors as markets seem to be under-appreciating inflation risks and the normalization of monetary policy (both through increasing interest rates and Quantitative Tightening [QT] ) and not just in the U.S. Given the slow pace of central bank tightening action this cycle and the recent Trump tax plan, it may be prudent to add six months to our timeline --Picton Mahoney

I predict US equities to deliver returns this year that are inferior to equity returns in most other markets around the world. - Absolute Return

Although low, today’s prospective returns are described as being reasonable in the context of low interest rates.

I’m convinced the easy money has been made

the one thing we can say for sure is that the current prospects for making money in U.S. equities aren’t what they were half a dozen years ago.

today’s high prices mean the odds are against a significant long-term upward move from here.

--Oaktree
the period of sluggish economic growth and low interest rates which we have experienced over the past decade may persist for some considerable time. I think this is likely for the simplest of reasons: little or nothing has been done to correct the problems which led to the Financial Crisis. - Fundsmith
the U.S. stock market continues to be very expensive and, in our view, continues to offer very unattractive long term prospective returns with above-average risk of capital impairment. -- Centaur Total Return

Single digit returns seem reasonable for U.S. equities after such a strong year. Decelerating but positive growth is still favorable for equities, though returns tend to be more muted in this environment.

-- Picton Mahoney

We continue to believe there isn’t enough of a margin of safety to warrant a fully-invested portfolio

The 40% decline in U.S. corporate tax rates will help increase the earnings of many domestic companies but much of that already looks like it is baked into current market valuations.

Now, after Bull Market Year 9, we’re beginning to see a level of excitement that reflects something more akin to risk ignorance, which has led us to a lower-than-average exposure to risk assets.

-FPA Crescent
It is currently very difficult to find an attractive investment on the US market. This is why we have been buying on other markets in the past year – in Denmark, Canada, Japan, the UK, and Korea. -- Vltava

Given such strong returns of late, we fully understand why an investor might feel that a cautionary outlook for 2018 is warranted. However, bull markets tend to end with a bang, not a whimper.

according to Peter Oppenheimer and his team at the investment bank Goldman Sachs, there is often an underappreciated penalty for selling early at the end of a bull market. Specifically, they note that an investor who sells the equity market just three months before its peak misses about the same amount (roughly seven percent on average) as an investor loses in the first three months of a bear market

Overall, though, as we peer around the corner today on what returns look like tomorrow, we can’t help but have a more conservative view. Indeed, our work around margins, multiples, and cycle duration all lead us to forecast more modest forward returns for many asset classes

--KKR
Regarding the stock market, while we all asked Santa for a few more 2017s over the next few years, simple math suggests that he won’t deliver. Whether you invest in individual securities or the Index, the same three factors drive your return: earnings growth, dividend yield and valuation. --Ruane, Cunniff & Goldfarb

Limited Upside

How much higher can the market go?

Cryptocurrencies

What do hedge funds think of bitcoin and other cryptocurrencies?

Bitcoin has turned into an Eldorado for drug dealers, tax evaders and other dodgy individuals who need to launder their dirty money, and governments all over the world are keen to put a stop to that practice. For what it is worth, I think Bitcoin will top out at levels substantially higher than today’s, but top out it will, and the downfall will be dramatic. - Absolute Return

It is tempting to dismiss cryptocurrencies as a fad. It is uncanny how the current frenzy around initial coin offerings resembles the dot com bubble of the late 90s. Back then, the price of companies became completely untethered from any conceivable intrinsic value.

If the analogy between the crypto boom and the dot com boom holds, there will be valuable cryptocurrencies in twenty years’ time. Furthermore, they will transform our economy.

My conclusion is not to dismiss this space, but actively follow its development and potential impact on both current and future investments in the Business Owner Fund. - RV Capital

When there is no income today or in anyone's reasonable time horizon, investing in those assets becomes pure speculation. This can be the only explanation for digital currencies and extremely high valuations for money losing or barely profitable enterprises. We are witnessing a bubble today that is one of the poster children of the Greater Fool Theory, whereby a speculator needs to find a more foolish person than himself to sell his assets to. --Vilas Capital

Another argument that bitcoin is a bubble is based on its seeming to be all over the news, that Uber drivers now bring up the topic and that someone’s unemployed nephew is mining cryptocurrency in his bedroom. All the earmarks of the Internet Bubble of 18 years ago. But it is a superficial resemblance. You cannot have a bubble – that is, ready to collapse as soon as more money stops being added to it – until pretty much everyone who wants to be in is in. But no one’s really in, yet.

YES, there is a cryptocurrency bubble – just not in bitcoin. There are over 1,300 cryptocurrencies or coins, many of which are poorly conceived, poorly designed, or have no proprietary value --Horizon Kinetics

as history tells us, the first wave of mass adopters (after the hobbyists and researchers) of financial innovations usually is dominated by bad exploiters.

The right way to invest in cryptocurrency space to me is to 1) study it so you fully understand and believe in such ideology; 2) size it (in % of your net worth) as if a “donation” to that ideology; and 3) buy it only at the point of maximum pessimism against that ideology. --Tao Value

At the same time, we place no intrinsic value on a cheque book; it only serves as a means to effect the transfer. We should use the same logic when thinking about blockchain technology. Its utility resides solely in the transmission of money from one entity to another.

Apparently, the number of bitcoins will be limited to 21 million, creating a market scarcity that justifies its vertiginous rise in value. We would give more weight to this argument if bitcoin were the only cryptocurrency available, whereas in reality, there are now a wide range of virtual currencies, such as Litecoin, Ethereum, Zcash, Dash, Ripple, Monero, etc. In other words, we could create an infinity of monetary units, somewhat similar to a bank sending you as many cheque books as you request. --barrage capital

in 2016 and the first half of 2017 a sizeable portion of the market commentary that I heard or read was bearish; today barely any of it is. Given the contrarian nature of sentiment relative to market performance (i.e. the more people that are bullish and have already acted upon their enthusiasm by buying stocks, the fewer marginal buyers remain to drive further gains), this is a negative development for potential future returns, reflected in the expansion in valuation multiples. - Adestella
According to research, a little over three in every ten workers in South Korea have already “invested” in some type of cryptocurrency. A Sports bra company changes its name to “The Crypto Co” and shares rise from US$10 to US$575, reaching over US$10 billion in market value, only to fall by 98% to US$11 in the next few days. Art prices reach new records and paintings are sold for hundreds of millions of dollars. the world has been swimming in liquidity for a while, with direct and indirect impacts to asset prices. And this will possibly begin to unwind. Funding costs for companies from developed countries are at a historic low. Bad businesses with access to cheap capital. Bombs ahead - IP-Participações
As of today, the Shiller PE-ratio indicates levels comparable to 1929, just before the great financial crisis, and just topped during the new economy hype. - TGV Rubicon

On Jan. 9, 2018, our favorite mistake, Kodak, a $100 million market capitalization company earlier that morning and on the verge of breaking its debt covenants and declaring a second bankruptcy, announced a creation of KodakCoin, joining the ranks of other bubble mania companies such as Overstock and Long Island Ice Tea Corp., entering the digital currency space. Its stock soared almost 300% in two days with the market completely oblivious to almost a billion dollars in debt and pension obligations, a quickly declining core business, and continuous negative cash flows. ...we didn’t have to be rocket scientists to identify the same manic investor and market behavior that eventually ended in disaster for investors in the 2000-2001 and 2007-2008 time periods.

There are elements of the market today that are reminiscent of the “dot com” bubble of the late ‘90s.

In 1999, the announcement that a company was appending a “.com” to its name was often worth hundreds of percent of appreciation. Recently, announcements that a company is launching an “initial coin offering” or otherwise creating a blockchain have led to similar outcomes.

--Maran Capital

Anyone around in 1999 and early 2000 has had a classic primer in these signs.

my favorite advice once again: Keep an eye on what the TVs at lunchtime eateries are showing. When most have talking heads yammering about Amazon, Tencent, and Bitcoin and not Patriot replays – just as late 1999 featured the latest in Pets.com – we are probably down to the last few months. Good luck.

A melt-up or end-phase of a bubble within the next 6 months to 2 years is likely, i.e., over 50%.

If there is a melt-up, then the odds of a subsequent bubble break or melt-down are very, very high, i.e., over 90%.< --Jeremy Grantham

Signs of a top?

parallels between the current market and that of 1999-2000

Tax Cut Impact

Gauging the Impact of the Republican/Trump tax-cut

the current U.S. economic recovery is one of the longest in history. The economy is doing well; it seems to be gaining strength; and it feels like the recovery can go on longer. With the unemployment rate nearing full employment, GDP growth may well go into a more dynamic period. So why stimulate? --Oaktree

we are not convinced these tax cuts are sustainable in the long term and are therefore cautious about factoring this benefit into our estimates.

- iP-PARTiCiPAÇÕES
The likely result of these policies will be growth-induced inflation, further rising commodity prices and continued short-term interest rate hikes, as already indicated by the Federal Reserve. - Atlantic Investment Mgmt
We are adding stimulus to the U.S. economy at a time when it is already performing quite well. Indeed, there is a growing risk that stronger-than-expected growth forces the Fed into action, particularly given low unemployment, increasing capital expenditures, and elevated financial asset prices. Consistent with this viewpoint, we have revised upward our forecast for both short- and long-term -- KKR

The recent tax law will put money into the pockets of corporations that pay U.S. taxes by reducing their tax rate, and it will result in the repatriation of large amounts of foreign profits that U.S. companies have been holding abroad. The results will generally be very positive for corporate profits, cash flows and perhaps capital investment

It doesn’t make sense to try to artificially prolong an already-long recovery.

GDP growth can be enhanced temporarily through a shot of fiscal adrenaline (like a tax cut), but that can’t raise it permanently.

The unanimous willingness of former “deficit hawks” to pass a bill that adds more than $1 trillion to deficits and debt is indicative of what I’ve seen described as “ideological pliability.”

I think it’s unlikely to be much of a job-creator or long-term boon for the American middle class

the tax law is likely to result over time in higher deficits, higher national debt, higher economic growth, higher inflation, higher interest rates, higher federal debt service requirements, and thus still-higher deficits and debt.

Overall, the tax law is likely a short-term positive and a long-term negative in a variety of ways.

--Oaktree

Complete Results

Performance

Performance for Quarter

Performance YTD

Cash Allocation

Activity

New

Acuity Brands
ADP.
Advanced Emissions Solutions (ADES)
AIG
Aimia Inc (AIM CN)
Amerco
Aspen Insurance Holdings
AutoZone
Barclays
Bemis Company (BMS)
Brighthouse Financial (BHF)
Cabot Oil & Gas,
Capital and Counties plc
Carter Bank and Trust
CenturyLink (CTL)
Charter Communications
Credit Acceptance
Discovery Communications (DISCA)
Ebro Foods
Ensco (ESV)
Five Point Holdings
Greenhill & Co. Inc. (GHL)
Inchcape plc
InVision AG
IQVIA Holdings
Knight Therapeutics (GUD CN)
Lear Corp. (LEA)
Nike
Now Inc.
Otelco, Inc.
Parks! America (PRKA)
Polaris Infrastructure.
Premier Exhibitions (PRXIQ)
Priceline Group
Royal Vopak
Sanderson Farms Short (SAFM)
Scheid Vineyards (SVIN)
School Specialty.
Shake Shack
Skyline Corp (SKY)
SS&C Technologies Holdings
Stitch Fix (SFIX)
Tejon Ranch (TRC)
The Joint Corp. (JYNT)
Tidewater
Time Warner (TWX)
Twitter (TWTR)
Village Supermarkets (VLGEA)
Vistra Energy Corp. (VST)
Welling Holdings Ltd
Wharf Holdings
WPP plc
Zoetis

Added to

Alphabet
BAE Systems plc
Celgene
Edwards Lifesciences
Flybe
Hang Lung Group
Hiscox
Jacobs
Limbach (LMB)
Lookers plc
MagnaChip (MX)
MEI
Pharma
MYR Group (MYRG)
Omnicom
O’Reilly
Roche Holding
Rolls-Royce
Sky Network Television
Telecom Italia
TripAdvisor
Wells Fargo
Yatra (YTRA)

Trimmed

Roche Holding
3M Co
Align Technology, Inc
Allergan
Axel Springer SE
Bank of NY Mellon
Berkshire Hathaway
Calpine Corp. (CPN)
Canon Marketing
Cisco Systems
Comcast Corp
Diageo plc ADR
Dollar Tree
Elis SA
Emerson Electric
Fukuda Denshi
Gap
Heineken Holding
Mastercard
Nestlé
Novartis
O’Reilly
PayPal
Playa (PLYA)
Royal Dutch Shell plc
Siegfried
TJX
Total
Unilever ADR
USA Technologies (USAT)
Villeroy & Boch
Waters
Wells Fargo & Company
Westfield Corp
Zurich Insurance Group

Sold Out

AGCO Corporation
Air Products.
Akzo Nobel
American Eagle Outfitters (AEO)
Atos
Autonation
Berkshire Hathaway Cl B
BM
British American Tobacco
Citigroup
Clariant
Costco
Croda
Crown Holdings (CCK)
CVS Health (CVS)
Danaher
Deutsche Post
DKK
Emcor
Fastenal
General Motors
Gilead (GILD).
Goldman Sachs
Goodyear Tire
Harman
International
Hella
Hewlett Packard Enterprise (HPE)
Hilton.
Imperial Brands
Intrawest Resorts (SNOW)
JM Smucker
Kennedy Wilson Holdings
Kia Motors
New York REIT (NYRT)
Nike
Nomad Foods.
Parker Hannifin
Philip Morris Int'l
Provident Financial plc
Proxima
Redfin (RDFN)
RMG Networks (RMGN)
S&P Global
S&T Holdings
Shire plc ADR
Summit Materials (SUM)
Teleperformance
Thermo Fisher
Thermon Group
Tiffany
TJX Companies Inc
TT Electronics
United Parcel Services (UPS)
Valeant Pharmaceuticals.
VanEck Vectors Gold Miners ETF (GDX)
Virtus Investment Partners
Zodiac

Largest Holding

Only a few funds identify their asset allocation % or mention which holding is the largest in their portfolio.

Amazon
Apollo (APO)
Berkshire Hathaway
Berkshire Hathaway, Inc.
Blackstone (BX)
Cambrian Global
Carlyle Group
CIMAREX ENERGY CO
CK Asset Holdings.
Clarus Corp
Credit Acceptance Corp
Diageo plc
EXO IM
EZCORP (EZPW)
FACEBOOK, INC.
Franklin Covey (FC)
Heineken Holding NV
Imperial Metals Corp
Marathon Petroleum Corp.
Max 21 AG
Meyerhaeuser Co.
Micron Technology (MU)
MYR Group
NEWMONT MINING
Retail Holdings NV.
Safran SA
Seritage Growth Properties
Tesla Short
THE BLACKSTONE GROUP L.P.
The St. Joe Co.
TopBuild
Total Energy Services.

All Holdings

Name
3M Co1
AARON'S INC1
Abercrombie & Fitch Co. (ANF)1
Acuity Brands1
Admiral Group1
Adobe Systems Inc1
ADP.2
Advanced Emissions Solutions (ADES)1
AerCap Holdings N.V.2
AGCO CORP1
Agnico Eagle Mines Ltd. (AEM)1
Agrofresh (AGFS)1
Aimia1
Air Canada (AC)1
AJR/Quest SHORT1
ALCOA INC.1
ALIBABA GROUP HOLDING LIMITED SHORT1
Align Technology, Inc1
ALJ Regional Holdings (ALJJ)1
Alleghany corp1
ALLEGIANT TRAVEL CO1
Allergan plc2
Alliance Data Systems Corp.3
Ally Financial Inc.2
Alphabet, Inc.10
ALTABA INC1
Amadeus1
Amaysim Australia LTD2
Amazon SHORT1
Amazon5
AMC Networks1
Amerco1
AMERICAN EXPRESS COMPANY1
AMERICAN INTERNATIONAL GROUP, INC2
AMERICAN TOWER CORP.2
ANALOG DEVICES, INC.1
Andina Corp II warrants (ANDAW)1
Anheuser-Busch InBev1
Antofagasta plc1
AON PLC2
Apollo (APO)1
APPLE INC.2
Archrock Partners1
ARCONIC1
ARRIS INTERNATIONAL PLC1
ARROW ELECTRONICS INC1
Aspen Insurance Holdings1
Associated Capital1
Atento (ATTO)1
AutoZone1
AVNET INC1
AWDR
NO1
AXALTA COATING SYSTEMS LTD1
Axel Springer SE1
A P Mollar-Maersk1
B31
BAE Systems plc1
BAIDU INC. - ADR2
Bangkok Bank PCL1
BANK OF AMERICA CORPORATION1
Bank of America TARP Warrants.1
Bank of New York Mellon Corp.2
Barclays2
Bayer1
Berkshire Hathaway, Inc.4
Biglari Holdings (BH)1
Blackstone (BX)2
BMC Stock Holdings1
BOL FP1
Boston Omaha (BOMN)1
BP1
Brighthouse Financial (BHF)2
Brookfield Asset Mgmt.3
BRP Inc. (DOO)1
BT Group1
Calloway’s Nursery2
Cambrian Global1
Canadian Natural Resources (CNQ)1
Canon Marketing1
Capital and Counties plc1
CAPITOL FEDERAL FINANCIAL1
Carlyle Group1
CarMax, Inc.1
Carter Bank and Trust1
Caterpillar (CAT)1
Cavco Industries.1
CBL & Associates Properties (CBL)1
Celgene Corporation2
CenturyLink (CTL)1
CF Industries Holdings, Inc.1
Charles Schwab Corp.3
Charter Communications2
Chartwell Retirement Residences (CSH-U).1
Chesapeake Energy Corp.1
CIMAREX ENERGY CO1
Cisco Systems Inc2
CIT GROUP1
CITIGROUP1
CK Asset Holdings.1
CK Hutchinson Holdings.1
Clarus Corp
CNE LN1
CNX Resources (CNX)1
Cognizant1
Colgate Palmolive1
Colony NorthStar, Inc.1
Comcast Corp1
Conduent1
CONSOL Energy1
Constellation Software, Inc1
Constellium1
Continental Resources
(CLR) SHORT1
CR Bard1
Credit Acceptance Corp3
Crown Holdings (CCK) SHORT1
Cubic Corp2
CVS Health1
Daimler1
Danaher1
Daseke (DSKE)1
DBS Group Holdings Ltd1
Dell Technologies (DVMT)1
Dentsply Sirona, Inc1
Destination XL (DXLG)1
Diageo plc2
Diebold Nixdorf1
Discovery Communications (DISCA)1
DISH Network1
DOLLAR TREE, INC.3
Dr Pepper Snapple1
Eagle Bulk shipping Inc.1
Eastman Chemical1
Ebro Foods1
Elis SA1
Emcor Group1
Emerson Electric1
Empire Co Ltd. (EMP.A)1
Encana Corp. (ECA)1
Endeavor Mining Corp (EDV)1
Energisa1
Ensco (ESV)1
EQUINIX, INC.2
ESTERLINE TECHNOLOGIES CORPORATION1
EXO IM1
EXPEDIA, INC.1
Express Scripts1
EXXON1
EZCORP (EZPW)3
FACEBOOK, INC.3
fastenal1
Federal Home Loan Mortgage Corp.1
Federal National Mortgage Association1
Fiat Chrysler (FCAU)1
Firstservice Corp. (FSV)1
Five Point Holdings.2
FLL1
FLYB LN1
Ford1
Forest City Realty Trust.1
Forestar Group Inc.1
Formula One1
Franco-Nevada Corp. (FNV)1
Franklin Covey (FC)2
FTI Consulting1
Fukuda Denshi1
Fusion Telecommunications Intl.1
G4S plc1
Gaia, Inc. (GAIA)2
Gap1
Gaumont SA1
GAZPROM OAO - ADR1
GENERAL ELECTRIC CO1
General Motors2
Genesis Land Development Corp1
Getbusy1
GlaxoSmithKline plc1
GMAC Capital Trust I, Inc.1
gold1
Greenhill & Co. Inc. (GHL)1
GROUPE BRUXELLES LAMBERT S.A.1
Gruppo MutuiOnline2
Hang Lung Group1
HC1 Holdings, Inc.1
Heineken Holding3
HELMERICH + PAYNE1
Henderson Land Development.1
Henkel AG & Co Kgaa1
Hiscox1
Honda1
Hostess Brands (TWNK)1
HOUGHTON MIFFLIN HARCOURT CO1
Howard Hughes1
HSBC Holdings plc1
Huntsman Corporation1
Hyundai Motor Co1
ICF International1
Imperial Metals Corp2
Inchcape plc1
Interactive Brokers (IBKR)1
INTERDIGITAL INC1
International Wire Group, Inc.1
Invision AG1
ISHARES RUSSELL 1000 SHORT1
Issuer Direct (ISDR)1
Itasca Capital.1
Itaúsa/Itaú1
Iteris, Inc. (ITI)1
Jacobs1
JARDINE STRATEGIC HOLDINGS LIMITED1
Johnson & Johnson1
Johnson Controls International PLC.1
Jones Lang LaSalle1
Kinaxis Inc. (KXS)1
Knight Therapeutics (GUD CN)1
Name
Koito1
Kopparbergs Bryggeri1
Kraft Heinz1
Kraton1
Kroger1
Kurita Water1
LabCorp1
Land Securities Group.1
Las Vegas Sands Corp.1
Lear Corp. (LEA)1
Legg Mason1
Lennar Corp2
LENTA LTD1
LEUCADIA NATIONAL CORPORATION1
Liberty Broadband Corp.-Series C1
Liberty Global PLC1
Liberty Media Corporation1
Liberty SiriusXM Group-Series C1
Life Financial Inc. (SLF)1
Limbach (LMB)1
Livestrong.com (LFGR)1
Lookers plc1
LPL FINANCIAL HOLDINGS INC.1
LUKOIL OAO1
Lundin Mining1
LyondellBasell Industries N.V.1
M. Dias Branco1
M11
Macquarie Infrastructure Corp.1
Maiden Holdings Ltd. (MHLD)1
Manulife Financial Corp (MFC)1
Marathon Petroleum Corp.1
Mastercard, Inc3
Max 11 AG1
Maxim Power Corp1
MEGGITT PLC1
MEIP1
Meritage Hospitality Group.1
Meyerhaeuser Co.1
Michelin1
Micron Technology (MU)2
Microsoft Corporation3
MMA Capital Management.2
MMC NORILSK NICKEL OJSC1
Mohawk1
Mondo TV1
Monitronics International, Inc.2
MUNICH REINSURANCE1
MYLAN NV2
MYR Group1
NASPERS LIMITED - N SHARES1
National Western Life Group Inc1
National-Oilwell Varco1
NEOPOST1
Nestle SA2
Netflix SHORT1
New Ulm Telecom.1
NEWMONT MINING1
NEX Group1
NEXEO SOLUTIONS INC.1
Nexpoint Residential Trust1
NGK Spark Plug1
NIKE Inc2
Nilorngruppen1
NOBLE ENERGY INC1
Novartis AG1
Novo Nordisk1
Now Inc.2
Nuvista Energy Ltd. (NVA)1
OCCIDENTAL PETROLEUM1
OCDO
LN1
Omnicom1
OneMain Financial (OMF)1
Onvia Inc1
ORACLE CORPORATION2
Otelco Inc.1
OWENS-ILLINOIS2
O’Reilly Automotive, Inc.2
Panvel1
PATTERSON UTI ENERGY INC1
PayPal Holdings2
Pembina Pipeline Corp. (PPL)1
Pendrell Corp.1
PN REAL ESTATE INV. TRUST SHORT1
PIA IM1
PITNEY BOWES INC SHORT1
Playa (PLYA)1
Polaris Infrastructure.1
PORSCHE AUTO HOLDING SE1
Praxair, Inc1
Priceline Group Inc6
Prosperity Bancshares1
Public Finance Authorit1
QUALCOMM INC2
Quorum Healthcare1
RACE1
Rayonier.1
Reckitt Benckiser1
Recruit Holdings1
Redknee Solutions (RKN.TO)1
Regeneron Pharmaceuticals1
RESI1
Retail Holdings NV.1
Roche Holding AG1
Rolls-Royce Holdings plc, Inc2
ROSNEFT OIL COMPANY - REG S GDR1
Ross Stores1
ROWAN COMPANIES PLC1
Royal Bank of Canada (RY)1
Royal Dutch Shell plc2
Royal Vopak1
RR/ LN1
SABRA HEALTH CARE REIT SHORT1
Safran SA2
Sainsbury1
Salvatore Ferragamo Italia1
Sanderson Farms SHORT1
Scheid Vineyards (SVIN)1
Schlumberger.1
School Specialty.1
SCOR SE1
Sears Holdings Corp.2
Seritage Growth Properties2
Shake Shack1
Siegfried1
Siemens AG1
Sitestar (SYTE)1
Sky Network Television1
SM ENERGY CO1
Sohu1
Songa Bulk AS1
SOUND HOLDINGS1
Spin Master Corp (TOY)1
SPIRIT AIRLINES INC2
SS&C Technologies Holdings1
Standard Chartered plc1
STATOIL1
Stitch Fix (SFIX)1
Stolt-Nielsen Ltd1
SURGUTNEFTEGAS1
Syncora Financial.1
Synopsys Inc. (SNPS US)1
TACOW1
Target1
TD AMERITRADE HOLDING CORP.1
TE CONNECTIVTY1
Teikoku Sen-I Co1
Tejon Ranch (TRC)1
Telus Corp. (T).1
TENCENT HOLDINGS LIMITED SHORT1
TENNECO INC1
Terago Inc.1
Tesco1
Tesla Short3
Texas Pacific Land Trust1
TEXWINCA1
The St. Joe Co.2
THERMO FISHER SCIENTIFIC INC.1
Tidewater Inc1
Time Warner (TWX)1
TITR IM1
TJX Companies, Inc1
TopBuild1
Toronto-Dominion Bank (TD)1
Total Energy Services.1
Total SA2
Tractor Supply.1
Tri Pointe Group1
Triangle Capital Corp. (TCAP)1
TripAdvisor2
Tucows Inc.2
Turning Point Brands (TPB)1
Twenty-First Century Fox, Inc.-Class A1
Twitter (TWTR)1
TWNKW1
Unilever NV4
United Overseas Bank Ltd1
UNITED TECHNOLOGIES CORPORATION1
US Geothermal (HTM)1
USA Technologies (USAT)1
VEECO INSTRUMENTS INC1
VENTAS SHORT1
Verizon Communications1
Viacom1
Villeroy & Boch1
Visa3
Vistra Energy Corp. (VST)1
VOLKSWAGEN AG SHORT1
VOW
GR SHORT1
VVI1
W.W. GRAINGER, INC SHORT1
Wal-Mart1
Walgreens1
warrants [Daseke]1
Warrior Met Coal1
Waste Connections Inc., (WCN)1
Waters Corp2
Wayfair (W)1
Wells Fargo3
Wendy’s1
Western Digital (WDC)2
WESTERN UNION1
Westfield Corp.1
Weyerhaeuser Co.1
Wharf Holdings1
Wheelock & Company1
Where Food Comes From (WFCF)1
William Lyon Homes1
WPP plc2
WW Grainger1
YAHOO! JAPAN CORPORATION SHORT1
YY Inc.1
Zurich Insurance Group2

Famous Quotes

Hedge fund managers often include famous and inspirational quotes in their letters.

Below are ones included in 4th quarter letters.

"You dropped a hundred and fifty grand on an education you could have gotten for a dollar fifty in late charges at the public library.” ~ Good Will Hunting
As Buffett said, “be fearful when others are greedy.”
As Peter Lynch once said, “Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.”
During the dry years, the people forgot about the rich years, and when the wet years returned, they lost all memory of the dry years. It was always that way. John Steinbeck East of Eden
I am the Greatest of All Time…I’m fast…I can’t possibly be beat…I’m pretty…I shook up the World! Muhammad Ali.
Mike Tyson: “Everybody has a plan ‘till they get punched in the mouth.”
Most of the mistakes in thinking are inadequacies of perception rather than mistakes of logic. Edward de Bono
‘You can observe a lot by watching’ Yogi Berra
“ You can’t always get what you want; but…you get what you need. ” THE ROLLING STONES
“A bull market is like sex. It feels best just before it ends.” – Warren Buffett
“A rising tide lifts all boats” -- John F. Kennedy
“By failing to prepare, you are preparing to fail.” –Benjamin Franklin
“Cash is like oxygen. When you don’t need it, you don’t notice it. When you do need it, it’s the only thing you need.” – Warren Buffett
“Invest in what you know. Your investor's edge is not something you get from Wall Street experts. It's something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand.” - Peter Lynch
“No matter how thin you slice it, there will always be two sides.” — Baruch Spinoza
“Only when the tide goes out do you discover who’s been swimming naked” – Warren Buffett
“Opportunity comes to the prepared mind.” –Charlie Munger
“Play your game. Play your game. Play Your Game.” - Herb Brooks
“To thine own self be true” — Shakespeare, Hamlet, Polonius Act 1, Scene 3
“Victorious warriors win first and then go to war, while defeated warriors go to war and then seek to win.” - Sun Tzu