In the end, I would say one more thing: if you're interested in pursuing
outsized returns from investing in stocks, I'd stop reading things that say these types of results are not possible (or lucky) and study the guys who have achieved long term statistically signicant records like Graham, Buffett, Schloss, Greenblatt, and others.
The whole idea of investing in Alternatives is to capture
outsized returns from inefficient markets.
Furthermore these smaller, specialized funds will be appropriately sized to drive
outsized returns from more modest M&A exits.
With an emphasis on small investments in capital efficient businesses with low entry valuations and high ownership, small funds can produce attractive returns from more modest sub $ 110 million M&A exits and generate
outsized returns from one or two «homerun» exits which can return multiples of the fund's total committed capital.
That can lead to
outsized returns from the Dark Side.
Not exact matches
At an investment conference in May, Ackman explained that his long position in the pharma firm stemmed
from his belief that Valeant's aggressive acquisition style — and the
outsized returns it had so far produced — made the company akin to a younger version of Warren Buffett's Berkshire.
But a growing portion of the money flowing into hedge funds is coming
from pension funds, run by investors who are more interested in consistent
returns than
outsized ones.
Even as derivatives trading may demonstrate a certain sophistication among millennial traders, it could also reflect their
outsized stomach for risk, since they have a longer runway to earn
returns from the market.
«So while
returns may compress
from the
outsized gains we have seen over the last several years, we remain constructive on equities.
«Stocks certainly look more attractive than bonds, but the case for stocks versus other asset classes is less clear... «So while
returns may compress
from the
outsized gains we have seen over the last several years, we remain constructive on equities.
Even if we don't see
outsized price increases in commodities,
from a total
return perspective, commodity
returns will benefit
from a change to positive roll yields based on the reshaping and structuring of the fundamental market in commodities.
The
outsized return potential is then derived
from one or two «homerun» investments that enable the fund to
return multiples of total committed capital while the downside has been protected by more modest distributions
from M&A or secondary sales.
Hedge funds enjoyed a heyday for several years
from 1993 to the financial crash of 2007, earning
outsized returns of 12.7 percent annually after fees, according to Hedge Fund Research.
We can see
from Buffett's experience and hindsight, that it is impossible to earn
outsized returns over the long run without experiencing some short - term declines.
Especially in light of today's market volatility, they can help shield a portfolio
from outsized returns on both the upside and the downside.
While its recent performance has been outstanding, it's hard to know whether it will continue, since it's not clear where those
outsized returns are coming
from.
But because 4.1 % of that
outsized return was a direct consequence of the dividend yield tumbling
from 8 % to 1.2 %, the real
return for stocks was a much more modest 5.1 %.
Will that prevent
from getting the
outsized returns of others?
With the strengthening U.S. economy helping to ease trepidation over the direction of commercial real estate fundamentals, industrial investors are in the market for the
outsized returns that can come
from increased risk and alternative investments.