Value-oriented hedge funds are great to piggyback for various reasons:
- they are typically long-term buy and hold investors. They don't like to sell a stock until its reached what they feel is the "intrinsic value" of the company.
- They do enormous due diligence and research. Much more than I can conceivably do.
- They tend to be focus-investors, not afraid to take big stakes in a company.
- They tend to average down on dips with the theory that if the stock price is going lower, than the company's shares are simply better values at that point.
Below are five of my favorite value-oriented hedge funds. In two future posts I plan on posting my favorite non-hedge fund value investors.
If you want to automatically get an email every time Stockpickr updates a value fund's portfolio then follow this technique:
- click on any of the links below to view the portfolio of the particular fund
- you can "bookmark" a fund by rating it with 4 stars on the top left of the portfolio
That’s it. Now, whenever that fund is updated, you'll immediately get an email. Furthermore, if discussions start on that fund's portfolio page, you'll be notified. I hope this becomes a useful tool for you.
My Five favorite Value-oriented hedge funds
Private Capital - super investor Bruce Sherman has probably invested in more companies that Buffett ended up buying than anyone else.
Gotham Capital - Joel Greenblatt is the author of my favorite investment book, "You Can Be a Stock Market Genius".
Baupost Group - Seth Klarman is the author of Margin of Safety, currently selling for $900 on EBAY.
Greenlight Capital, interesting anecdote is that portfolio manager David Einhorn was in the top 10 at this year's World Series of Poker.
Okumus Capital - I became a fan after reading the Okumus interview in the book "Stock Market Wizards" by Jack Schwager.
