Alternative Thinking: Superstar Investors

December 06, 2016
  • Contributors:

    Dan Villalon, Jordan Brooks, Paras Bakrania
  • Topic:

    Portfolio Management, Factor Investing

Many famous investors are outspoken about their investment philosophies, and carefully apply them to a select number of securities. In this Alternative Thinking, we seek to apply their wisdom systematically; to ask whether their philosophies applied broadly might still generate “alpha”.

Our analysis suggests there are many ways to achieve long-run investment success. The takeaway for investors is to identify structural edges and commit to seeing them through inevitable periods of underperformance. As each of our superstars shows, “merely good” edges over time may compound to great long-term performance.

The UK Supplement presents additional results for two renowned U.K.-based funds, Neil Woodford’s Invesco Perpetual U.K. High Income Fund and Terry Smith’s Fundsmith Equity Fund.

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  • The views and opinions expressed herein are those of the author and do not necessarily reflect the views of AQR Capital Management, LLC, its affiliates or its employees.
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