Value Investing, Edge Style

Value Investing, Edge Style I often see interviews with the well-known value investors out there. Usually they get asked the same old questions, including “What do you look for in an investment?” Can any of you really remember, recite and have implemented what they said? Sure, their views are interesting, but for me, value investing is a philosophy (the fundamental nature of knowledge), not a science. This is exactly my point: we all know what the criteria is, but the special sauce is the ability to recognize when the stars align, spot something different, and only then execute with...

Don’t Fear Technology – Embrace the Machines

Don’t Fear Technology – Embrace the Machines Machines are here and live. Don’t kid yourself. Did you know that soda vending machines are being price manipulated now per the temperature outside? When it’s hot, these machines price the item higher. Well, it stands to reason that the hotter it is, the thirstier you become, the more likely you need to replace the lost fluid and let’s face it, we’ve all bought that $5 (normal price $1) bottle of water in desperation, right? We are all aware that prices are manipulated these days. The supermarket food shelves, where there are more deals on a Tuesday and...

The Incredible Shrinking Financial Industry

The Incredible Shrinking Financial Industry I was in London last week for the first time since I moved the firm over from London 18 months ago, and I saw 37 funds. In between meetings, I met with a few old colleagues. Nothing generally surprises me these days, but it really did surprise me the amount of people that I knew that were in the industry and now are in completely different areas or even doing nothing at all. How times change, and at a fast pace too. The new big change on the horizon is MiFID II. It will really highlight what the funds are paying for and where they perceive the value. This is...

Types of Mouse Traps

Types of Mouse Traps I live in the suburbs in the state of NJ and my neighbors are bears, deer and raccoons. It’s the way I like it. One of our close friends lives in an even more remote part and he is having a mouse issue. We were discussing mouse traps. Did you know there are at least 5 types on offer? We see and meet a lot of interesting people here at The Edge, but very occasionally, I do stand back in amazement at some of the interactions.  We had one potential client call in this week and asked straight off the bat: “What can I get for free?” “There ain’t no such...

Free Cookies Inside…

Free Cookies Inside… It’s an old trick, I know, but how many emails claiming free stuff inside do you open? Hopefully you’re not offended, and here is something for free indeed! This week’s newsletter is a bit different, and contains the killer findings of two recent studies that we have produced at The Edge. 15-Year Spinoff Performance Study with Deloitte “The whole is greater than the sum of its parts.” – Aristotle In direct contravention of this timeless quote, we find that the sum of parts is greater than the whole. We find that a Spinoff of a...

The Death of The Sell-Side Analyst

The Death of The Sell-Side Analyst So, what’s it all about? There is a huge change in Europe coming. Are you ready? Ready for what? The murky area of accountability in our industry is about to become a whole lot clearer. Amongst other things, it will have a huge impact on investment research. It will not only have an impact on Europe, but globally too. Very few firms are talking about it right now but if you are an investment manager anywhere in the world, you should be thinking about positioning yourself. MiFID II, an upcoming piece of legislation from EU regulators that takes effect from...