Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
|
As I like to tell the analysts I coach, ‘crush or be crushed.’ There’s always a particular time (and Quad) to make “calls.” It’s all about using a Quantamental #process to up their probability of being right. I like high slugging percentages, but I love consistently high batting averages. That’s definitely NOT how many people still think about analysts and PMs who play this game. Particularly in the hedge fund industry, there’s still a CNBC premium put on the “big call” someone makes on a “stock.” Pre-Reg Full Disclosure, there used to be significant alpha in that game. That’s when I started in this business. That’s partly why stock pickers had uncorrelated returns to the market. Today, there’s been a much higher INVESTOR premium placed on consistent, beta and volatility adjusted returns that not only beat the “market” over time, but don’t suffer the crashes and draw-downs that those who are levered long beta do. I’m here to help you as best I can with that. |
