MrB
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Posts posted by MrB
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Nate I think what you've done in terms of identifying a niche and making a name for yourself in that space is impressive. Well done.
As to your comments on marketing I agree and this recent video, which you most likely would have seen, but is well worth watching for anyone else out there.
http://www.opalesque.tv/hedge-fund-videos/bryan-k-johnson/1
He also have a few good presentations worth reading; obviously talking his book, but some great stats.
89% OF ALL HEDGE FUNDS FAIL TO REACH $100 MILLION AUM
81% OF ALL HEDGE FUNDS HAVE NO MARKETING PLAN.
http://johnsn.com/uploads/MUTINY_FUND_STRATEGIC_CONSULT.pdf
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I think there maybe two groups of folks interested in starting funds. First are what I would call lifestyle funds where a manager is not trying to get rich but investing enough to pay his salary and possibly a few part-time staff members, similar to lifestyle businesses. They use the fund to offset some of the investing costs they have, more akin to a co-op versus a fee generating firm. Second are emerging funds trying to perform well but they can generate more fees by maximize AUM. Marketing is a part of the first but the core of the second. The incentives in the first is to maximize performance but not in the second.
A major issue with investment management is information asymmetry. There is a lot of money being spent on sub market performance in part due to marketing stories. You can say that the investors are getting what they want but the manager is acting a seller of services versus a fiduciary. This is why Bogle's low-cost argument makes a lot sense for just about everybody. I would have a hard offering a product knowing that in most cases someone would do better holding index funds. Not that marketing is not needed but is the marketing the core or the product?
Packer
Speaking of asymmetry to underscore your point about Bogle; you can spend 5 minutes selecting your index fund and outperform 85% of professional fund managers right out of the block...and then go back to fishing.
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Generally speaking you can come at it as a GP or LP.
For a GP the most important thing is to understand your own personality very well and create a firm around that without ignoring business realities. Anything else will be a mistake and no amount of money will compensate; life's too short!!
For a LP the most important thing is to ensure your incentives are aligned. Anything else is just stupid.
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When you choose your heroes, make sure they're dead. Otherwise they will end up disappointing you LOL
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Here's a 2 hour audio clip of the Q & A. It includes everything except the very first question (which Charlie said happened to be the most intelligent question ever asked at the meeting, haha)
Well, I have to ask then. What was the first question? TIA.
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Great choice.
He's with Lissom
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I am working through the CB&I annual report right now. I think you are right to be skeptical about the cash balance. CBI, for example, has a very large negative working capital balance. Depending on the nature of the projects, the revenue, earnings, and ROE are all rough estimates at best. How long are the projects? What are the revenue recognition policies?
One of the reasons why they might have decent ROE is that they have very large upfront payments, which would reduce capital needs. I would expect to see this as deferred revenue on the balance sheet.
I would add that cash - deferred revenue would be my starting point to figure out whether there is excess cash.
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It always amazes me that John is almost unknown in Canada.
What is that saying about a prophet not being accepted in his hometown? :(
Ok that is unfair, John did not exactly promote himself, but I do think he was/is one of the best people to learn from.
Great guy!
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hilleryvaluecommentaries.com
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No regrets. I'm forgiven!
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BVI might be a cheaper option. I think you have to use Cayman service providers for a Cayman fund, which is not the case for the BVI. Double check though.
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What is the gross rent/sq meter?
Don't know exactly… These days it might be quite depressed… In my experience with the rent you can cover all the costs associated with owning such a luxury apartment with ease… but then not much money is left to put in your pockets! ;)
Gio
So it sounds like 0. In that case I suggest you price it the way you would a good cigar or a good bottle of scotch! ;D
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What is the gross rent/sq meter?
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So have you started buying some toys yet!
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Any ideas on how to get as many broker entitlements for research, please? There used to be a service Markets.com which allowed you to sign up for research from several brokers. Anything of a similar nature or does it come down to having a relationship with each broker?
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He's good. Probably classify him as investing in undervalued long term growth stories for the most part. There will generally be a 2nd level story to his investments, so worth looking into what he is buying.
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Thanks!
You should update it more often!
+1
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It looks like Bruce Berkowitz Has Lost It and Is No Longer Talented
in General Discussion
Posted
He should call George Armoyan
http://thechronicleherald.ca/metro/1246246-developer-george-armoyan-banned-from-city-buildings-due-to-threatening-behaviour