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A 1,570% Safer-Than-Stocks Return at an 8% Discount TodayBy
Tuesday, December 8, 2015
Investment guru Daniel Loeb has accomplished the impossible...
$10,000 invested with him at the start of his flagship fund in 1996 would have turned into roughly $167,000 at the end of the most recent quarter...
That is a return of roughly 1,570%.
Compare that with the 7%-a-year return in the stock market over that same time frame... and, well, there is no comparison.
(All of these return numbers are estimated, based on numbers in his fund's third-quarter report. They should be pretty close to accurate.)
Even better, Daniel Loeb accomplished this with less risk – less volatility – than the U.S. stock market.
(Specifically, the standard deviation of monthly returns in Loeb's fund going back to 2007 – the earliest data I have – is significantly lower than for the U.S. stock market.)
Loeb's flagship fund is a hedge fund...
Hedge funds are typically off limits to smaller individual investors. However, there is a unique way for individual investors to be able to buy into Loeb's fund... for an even better price than what big investors paid...
You see, shares of Loeb's flagship fund are listed on the London Stock Exchange. (That's a simplified explanation, but the net effect is correct.)
As I write, Loeb's London-listed shares are trading at an 8.5% discount to liquidation value. It's the biggest discount since February of 2014.
Big investors paid full price to get in... But by buying on the London Stock Exchange today, smaller investors can get in to Loeb's fund at a big discount.
The symbol for his fund on the London Stock Exchange is TPOU.L. (The "L" is for London. Your broker might have a different designation for London-traded stocks.)
Daniel Loeb has delivered the impossible... He has dramatically outperformed the market for nearly two decades. And he has done so with less risk.
Today, you can buy into Loeb's hedge fund at a discount through the London Stock Exchange. (Shares of TPOU.L are somewhat lightly traded... So if you buy, use a limit order... and make sure to do more homework other than this write-up.)
I can't do much better than to share with you a market-beating, low-risk investor... whose fund is selling at a significant discount to liquidation value...
I suggest you learn more about Daniel Loeb and TPOU.L today...
Good investing,
Steve
Further Reading:
Find Steve's recent essays right here:
The Best Way I've Seen to Start a Relationship
"It was the best way I've seen to start an important, genuine relationship – and it only took three questions..." How to Easily Inspire People to Overachieve
"I wasn't looking for parenting advice in this book. But there it was – smacking me in the face." Market NotesTHIS 'RETAILER' CONTINUES TO OUTPERFORM Today's chart highlights a special type of retailer that has been soaring above the competition...
It has been tough to find much success investing in the retail market lately. Big names like Macy's and Wal-Mart have dropped 25%-plus in the past year... and many more have suffered (with the exception of online retailer Amazon, which has rocketed 100%-plus). But one company that has flown under the radar during this period is wholesale giant Costco (COST).
Costco has succeeded because it isn't your typical retail company... it's a membership-only club. The company sells essential everyday goods in bulk and at a discount. Costco's steady growth can also be attributed to its gas stations... The wholesaler is one of the largest sellers of gasoline in the U.S.
As you can see, Costco is able to drive sales in a way that separates it from grocery stores and other traditional retailers. This business model has catapulted shares 20%-plus over the past three months... and the stock just hit a new all-time high yesterday...
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