Invest With The House: Hacking The Top Hedge Funds by Meb Faber

Invest With The House gives a fascinating insight into top investors, as seen through their holdings. The profiles and linked articles provide a good overview of each investor’s strategy, but you also get a glimpse of the enthusiasm they have for their work.

Book notes

“A patient and disciplined approach to investing and being cautious are the cornerstones of any successful investor”

Klarman was tutored by Max Heine and Michael Price at Mutual Shares Corporation where he worked for two years

One of Baupost’s investments was $230 million worth of claims from Madoff investors bought for $74 million. The investment more than doubled after a favorable court ruling.

Glenn Greenberg had roughly 70% of his invested total tied up in his top five holdings

“[Tom] Russo searches for well-run, family controlled companies that he can buy for as little as half of what he feels they are actually worth based on their future prospects.”
“Companies have to have the capacity to suffer when they want to expand”

“What I like is solving the puzzles. I think that what you are dealing with here is incomplete information. You’ve got little bits of things. You have facts. You have analysis. You have numbers. You have people’s motivations. And you try to put this together into a puzzle or decode the puzzle in a way that allows you to have a way better than average opportunity to do well if you solve the puzzle correctly, and that’s the best part of the business.” —David Einhorn

“Beware of crowded trades in hot companies”

Look for areas of fear and panic

Seek out asymmetric investments where the potential return is three times the risk of loss

Investors worth following:

  • David Tepper
  • Charles Mackall Jr
  • Seth Klarman
  • Glenn Greenberg
  • Ravenel Boykin Curry
  • Tom Russo
  • Daivid Einhorn
  • Robert Raiff
  • Christopher Hohn
  • Eddie Lampert
  • Bruce Berkowitz

Buy Invest With The House on Amazon (affiliate link)