Posted by Davy on September 28th, 2009 in Gurus, Worth Reading (links to articles, etc.)
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Peter Thiel isn’t as widely followed as some other hedge fund managers. One possible explanation may be his hedge fund, Clarium Capital, employs a macro strategies which are more complex and opaque to individual investors. Nevertheless, I have always found his views on the broader economy and global situation to be insightful.

Today’s Wall Street Journal writes that Thiel’s fund is one of the few struggling this year[$]. Apparently, he has put his money where his mouth is and stood by his view that the current economic “recovery” is a mirage. Obviously, with the powerful rally in nearly all markets, short bets are big losers.

I point this article out to readers as it coincides with a theme I will explore when I post my portfolio update at month’s end. Financial media is filled with stories about skeptical investors who missed the rally or need to get in to match their benchmarks. For months now, I have expressed doubt about the standing of the economy and markets. For months now, I have been wrong.

Nevertheless, my returns for the year have outpaced nearly all the indices, even accounting for a cash balance which has not dipped below 10% all year.

While Peter Thiel is paid to have an opinion on broader market trends and bet on those opinions, I pursue a different strategy. While I may have opinions about the broader market, I do not base my investment decisions on them and try to remain emotionally detached from whether those opinions are correct. By employing a mix of value investing and asset allocation, I strive to achieve returns with some non-correlation to the broader market.

I have discussed many of these themes in the past on my blog but readers will soon be able to see every detail of my strategies with the launch of a premium service offering unfettered access to my entire portfolio, research, and watch lists in real-time. I spent most of the weekend on getting the service ready to launch, which should happen this week. Since I will be administering it personally, the service will be limited to only fifty (50) slots for the ridiculous price of $129 annually.

More details to be announced by month’s end but until then, many happy returns, no matter where the market moves.