New this week, more on China! Last week, we shared a long-term bullish view on China from veteran China-hand, Andy Rothman of Matthews Asia funds. This week, we are linking to an opposing view – some research from contrarian value investor, Bill Smead. Smead is Portfolio Manager of the Smead Value fund, and is a contrarian in more ways than one. First of all, his nearly eight year old, actively managed fund has been beating the market not trailing it for the last five years, clocking in 21.4 % annualized returns versus the S&P 500’s 17.3%. Secondly, it’s one of the few active managers gaining assets not losing them. Just a few years ago Smead Value had a couple of hundred million under management – it now has $1.8 billion. Finally, and the reason for this research from him, Smead and his team were early naysayers on China and deliberately chose to “avoid companies with major exposure to China.”
The summer fund raising season for Public Television continues this week so we are revisiting some shows that provide a different perspective and a greater understanding of trends affecting our financial lives. Who better than a student of central bank history? Liaquat Ahamed, the Pulitzer Prize winning author of Lords of Finance, discusses the differences and similarities between central bank policies today and those leading up to the Great Depression. Watch this episode here.