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Fund Manager Featured in Magazine Article


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So he's got a whole 5 years of record?  ;)

 

So he's got a whole 5 years of record?  ;)

 

Yup!  There is a best manager every year in the media.  Cheers!

 

Those kind of returns in one of the most brutal 5 years in decades are impressive. Micheal Burry had similar returns after 5 years.

 

I don't know how long one has to be a manager before he or she is officially good and not lucky but what would worry me as an investor in his fund is his Madoff-like secrecy.

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Those kind of returns in one of the most brutal 5 years in decades are impressive. Micheal Burry had similar returns after 5 years.

 

I don't know how long one has to be a manager before he or she is officially good and not lucky but what would worry me as an investor in his fund is his Madoff-like secrecy.

 

What matters most is how the record was achieved. I'm sure some people can do 10x a year on tons of leverage, but they all eventually blow up..

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Guest valueInv

Those kind of returns in one of the most brutal 5 years in decades are impressive. Micheal Burry had similar returns after 5 years.

 

I don't know how long one has to be a manager before he or she is officially good and not lucky but what would worry me as an investor in his fund is his Madoff-like secrecy.

 

What matters most is how the record was achieved. I'm sure some people can do 10x a year on tons of leverage, but they all eventually blow up..

 

Aren't there limits to how much leverage you can use in a mutual fund?

 

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His returns are due to a very good 2009 and 2010.  He did have a very small base those years.  Not that I am one to criticize about that since I have the same issue. 

June 2008 $679,000

June 2009 $1.5 million

June 2010 $4.7 million

June 2011 $15.4 million

Dec 2011 $14.6 million

 

BAC fans should like that he had over 10% of the fund in BAC at year end.  The next few years will reveal the truth.

 

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Those kind of returns in one of the most brutal 5 years in decades are impressive.

 

Brutal 5 years? The market is up 100% since the lows of 2009. Who knows if he was even invested in anything for 2007-2008.

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Those kind of returns in one of the most brutal 5 years in decades are impressive.

 

Brutal 5 years? The market is up 100% since the lows of 2009. Who knows if he was even invested in anything for 2007-2008.

 

You can look it up on SEC Edgar.  The fund's semi-annual and annual reports are all there.  At Dec 2008 the fund was 13.7% cash.  Wellpoint was largest holding (10%) and SuperValu was second (6.9%). 

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Those kind of returns in one of the most brutal 5 years in decades are impressive.

 

Brutal 5 years? The market is up 100% since the lows of 2009. Who knows if he was even invested in anything for 2007-2008.

 

You can look it up on SEC Edgar.  The fund's semi-annual and annual reports are all there.  At Dec 2008 the fund was 13.7% cash.  Wellpoint was largest holding (10%) and SuperValu was second (6.9%).

 

Also on the funds website: http://www.oceanstonefund.com/shareholder.htm

 

Skimmed over most of his annual and semi annuals, lots of turn over in his top holdings. Not a bad thing IMO, seems like very methodical buy at below IV sell at IV and move on. Will be interesting to see where he is at in another 5-10 years.

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So he's got a whole 5 years of record?  ;)

 

So he's got a whole 5 years of record?  ;)

 

Yup!  There is a best manager every year in the media.  Cheers!

 

Those kind of returns in one of the most brutal 5 years in decades are impressive. Micheal Burry had similar returns after 5 years.

 

I don't know how long one has to be a manager before he or she is officially good and not lucky but what would worry me as an investor in his fund is his Madoff-like secrecy.

 

I wasn't picking on him.  I was picking on the title of your thread!  ;D  Cheers!

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Actually he seems to be a humble guy trying to invest well by himself and avoid fame and notoriety.

 

I don't see him claiming to be the "best in the world" himself.  Quickly looking at his holdings over the years, they actually have some overlap with stocks mentioned here.

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I was looking at this fund several months ago. One of the trustees of the fund is a guy who runs this fund:

 

http://quote.morningstar.com/fund/f.aspx?t=PRGRX

 

Actually, more than one directors of Mr. Wang's fund are connected with this other fund.

 

Also, I do wonder how small funds like these can sustain themselves economically. An asset base of US$15M with 1.8% expense ratio is  only US$270K.

 

Now for PRGRX, I am wondering why they did not pull the plug.

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Guest Hester

When you his funds under management increased at following pace:

June 2008 $679,000

June 2009 $1.5 million

June 2010 $4.7 million

June 2011 $15.4 million

Dec 2011 $14.6 million

 

Did he raise more money or did he manage to turn initial 679K into 14.6mil?

 

No that is including raised funds. If he turned $679 thousand to $14.6 million in that period of time, that would be roughly a 140% annual return.

 

Fund managers with this level of success over such a short period statistically have to exist when there are so many hedge funds in operation. So I'm always reluctant to get into a tizzy when I see a great 5 year performance. I'm not saying he is successful due completely to blind luck, but I think the odds are higher that he is an (possibly far) above average investor with a string of good luck (whilst benefitting from a small capital base) rather than the next Warren Buffett.

 

EDIT: And the only reason I say that last sentence is because of the grandiose title of the thread.

 

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With an annual turnover of 132% to 420% per year this on the surface sounds more like a momentum or trading fund than a value investing fund.  Just an observation.

 

Packer

 

Not necessarily.  Take BAC. It looks like the fund had 0 shares at 9/30/11 and then it becomes an 11.4% position at 12/31/11.  BAC closed the year at $5.69.  It is now $9.85.  If he chose to take profits on his gain is that a trading fund or good timing on buying something cheap and seeing it trade back toward fair value?   

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So he's got a whole 5 years of record?  ;)

 

So he's got a whole 5 years of record?  ;)

 

Yup!  There is a best manager every year in the media.  Cheers!

 

Those kind of returns in one of the most brutal 5 years in decades are impressive. Micheal Burry had similar returns after 5 years.

 

I don't know how long one has to be a manager before he or she is officially good and not lucky but what would worry me as an investor in his fund is his Madoff-like secrecy.

 

I wasn't picking on him.  I was picking on the title of your thread!  ;D  Cheers!

 

I apologize. I went ahead and changed the thread title.

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