Why We Do What We Do
It is absolutely critical that a retail investor does one thing.
Be honest with him or herself when answering the question…..should I really be trying to compete against the pros?
Think about the facts.
A retail investor has a couple of hours each week to research investments.
Compare that to the top hedge funds which have hundreds, if not thousands of man hours across an entire team of trained professionals working 50 plus hours per week.
And these aren’t just your average people working at these top hedge funds.
These people make millions, if not tens of millions of dollars each year. That means the smartest, most motivated people on the planet are found here.
Remember the smartest kid in your school when you were growing up? These hedge funds consist only of people with that kind of brainpower.
These are the people that a retail investor is trying to compete against. And a retail investor is trying to do it in his or her spare time while these people work 12 hours a day.
Then there is the informational disadvantage.
For research material a retail investor has access to whatever can be found using Google.
Meanwhile, these top hedge funds have access not just to every analyst report ever written on a company. They can also hire a team of the foremost experts on any particular industry just to research a single investment idea.
A retail investor has no access to management. These top hedge funds not only can get top management on the phone within minutes but tend to own enough shares that they can actual influence company decisions.
In fact, these top hedge funds often own enough shares in the companies they invest in that they garner seats on the Board of Directors.
The reality is that this isn’t a fair fight.
You wouldn’t bet a golf pro $10,000 that you could beat them. A golf pro gets to practice with a full time golf instructor and gets to play competitive golf every day.
So why then would you risk $10,000 trying to beat the best investment managers in the business?
You shouldn’t. Instead of trying to compete against them, you should be trying to partner with them.
Therein lies the problem. The very best hedge funds require minimum investments of a million dollars plus, these funds are open only to the 1%, not the rest of us.
That is where The Superinvestor Bulletin comes in. We can level the playing field.
We can give you access to exactly what the very best hedge funds are investing in so that instead of competing with them you can profit from them.
The Superinvestor Bulletin – More Than Levelling The Playing Field
Just because you can’t invest directly in the top hedge funds doesn’t mean that you can’t invest alongside them.
What we do here at Superinvestor Bulletin is track everything that the very best hedge fund managers are buying and selling. We mean everything.
To be clear, we don’t track every hedge fund. Just the very best ones. The funds that have managers who have long track records of outperformance. Managers who make few mistakes and find the best investment ideas.
And we don’t just provide a data dump of every investment these top hedge funds make and force you to sift through them.
We examine each and every investment and then bring forward only the best of those investments. We don’t just provide the name of the investment, we also provide a comprehensive report explaining why the opportunity is attractive.
We tend to focus on ideas with the following traits:
– More than one of the top managers on our list have bought the stock
– One of the managers we follow has made an investment an unusually large position (shows a high degree of conviction)
– We don’t take homerun swings, balance sheet quality is of primary concern
– We pay extra attention to companies with large insider ownership or insider buying
– We pay close attention to activist positions taken by these managers which could act as a value realizing catalyst
– Strong cash flows and dividends are preferred
The Benefits Of Our Approach – Less Risk, More Return
Every investment idea that we bring forward has made it through the exhaustive due diligence process of at least one of the very best investment managers in the world.
These top managers tend to be very risk averse. If an investment makes it through their screening process there is a greatly reduced likelihood that it is a bad investment.
By limiting oneself to only investments that have been vetted by one of these top managers provides a tremendous reduction in the risk you are taking as an investor.
By building an entire portfolio of investment ideas generated by these top managers you are building a portfolio with a much lower risk profile.
But our approach isn’t just about lowering risk. It is also about maximizing return.
Because these guys don’t just avoid risk, they find ideas with unusual upside.
On top of that, we don’t just expect to match the returns of these top hedge funds, we expect to beat them because:
-We don’t pay the 2 and 20 management and performance fees that investors in these funds have to pay
-By being patient we can often get significantly better entry prices on these stocks that the top hedge fund managers did
-We are taking only what we think are the very best and by position size are the highest conviction ideas of these managers
Our approach is about “the best of the best”. The best ideas from the very best managers.
We do all the hard work. We dig out the ideas and explain why they are attractive opportunities.
You get to decide if you agree.