tag:blogger.com,1999:blog-816559531110064247.post3689100231188930755..comments2024-03-08T01:03:44.522-08:00Comments on Humble Student of the Markets: A simple style rotation modelCam Hui, CFAhttp://www.blogger.com/profile/09672203690656029787noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-816559531110064247.post-59587728204435638302010-01-26T20:19:09.416-08:002010-01-26T20:19:09.416-08:00Nice of you to borrow a quote that I borrowed from...Nice of you to borrow a quote that I borrowed from someone on the net and weave it into a style rotation post.<br />It takes a lot of conviction to push and stay with the "value ratio" button for four months, even for the average fund manager. The majority of retail swing traders would "wail and bail" from that chart, and the growth stock picking manager who chooses the "growth ratio" often bears the fruit before it is ripe. <br />It must be a constant struggle to keep composure and follow a model!<br /><br />Sometimes fundamentals and economic information can be seen for what can be gleaned through "true" data though. Early value pickers (Berkowitz/Tepper/Klarman) can succeed reading expensive technical trade publications and paying employees who attempt to see conditions on site, similar to what Chanos is attempting via China.<br />I've seen Japanese banks, small cap natural gas, oil refiner plays, and a host of others discussed by managers as attempts at early value trades the past week or so. <br />The next macro song to begin being played for us is a global version that just hasn't crystallized enough yet. Whether it's a currency, foreign debt crisis, cap and trade, gold, commercial real estate, U.S. or China, they will still leave a lot of losers wishing they had rearranged their correlations with their assumptive asset class models.keithpiccirillohttps://www.blogger.com/profile/16713240199705068281noreply@blogger.com