This week we have a rare interview with Bruce Berkowitz of The Fairholme Fund. Launched at the height of the tech bubble in late 1999, The Fairholme Fund has been the top performer in Morningstar’s Large Value category since inception, delivering 13% annualized returns and beating its nearest competitor by a margin of 2.4% points a year. Berkowitz believes in “ignoring the crowd”. He’ll explain why nearly 80% of his portfolio is in four financial stocks shunned by most investors.
BERKOWITZ: POWERFUL FINANCIALS?
BE VERY CAREFUL WHEN CONSIDERING ALTERNATIVE INVESTMENTS
Many new and inexperienced players Many strategies are untested in different market cycles High fees compared to traditional mutual funds Experience counts Go with managements with proven track records over many years and market cycles Watch the related WEALTHTRACK episode.
JENKINS & MAGNUSEN: ALTERNATIVE INVESTMENTS
Worried about the stock and bond markets? Are alternative investments the solution? Alternatives, such as hedge funds now come in a liquid mutual fund form so they can be bought and sold daily on an exchange. They are regulated and transparent, so you know what they own – and the fees are considerably less than hedge funds. Most are available to average individual investors. These Liquid Alternative funds have taken off – their assets have increased ten fold since 2005. Lipper’s Robert Jenkins and Altegris Advisors’ Lara Magnusen discuss the risks and rewards of alternative investments.
JENKINS & MAGNUSEN: ALTERNATIVE INVESTMENTS
Worried about the stock and bond markets? Are alternative investments the solution? Alternatives, such as hedge funds now come in a liquid mutual fund form so they can be bought and sold daily on an exchange. They are regulated and transparent, so you know what they own – and the fees are considerably less than hedge funds. Most are available to average individual investors. These Liquid Alternative funds have taken off – their assets have increased ten fold since 2005. Lipper’s Robert Jenkins and Altegris Advisors’ Lara Magnusen discuss the risks and rewards of alternative investments.
Darst & Kaplan: Portfolio Changes
With the stock market trading near record highs should investors adjust their portfolios? David Darst and Jay Kaplan say yes! Darst is an independent investment consultant and Senior Advisor and member of the Global Investment Committee at Morgan Stanley. He is also the author of 11 books, including two on mastering the art of asset allocation. Kaplan is portfolio manager of several funds run by small cap pioneer, The Royce Funds, which is known for its value orientation and high quality company focus. We’ll get their personal perspectives on market valuations.