Latest Memo from Howard Marks - What Really Matters?
What matters most? Asymmetry.

  • In sum, asymmetry shows up in a manager’s ability to do very well when things go his way and not too bad when they don’t.
  • A great adage says, “Never confuse brains and a bull market.” Managers with the skill needed to produce asymmetry are special because they’re able to fashion good gains from sources other than market advances.
  • When you think about it, the active investment business is, at its heart, completely about asymmetry. If a manager’s performance doesn’t exceed what can be explained by market returns and his relative risk posture – which stems from his choice of market sector, tactics, and level of aggressiveness – he simply hasn’t earned his fees.

(Source: Oaktree Insights)

Image upload
Source: Forbes

Dave Ahern's avatar
More good stuff to read. Thanks for sharing 🙏
Todor Kostov's avatar
@ifb_podcast Sure. Always a pleasure!
StockOpine's avatar
Thank you for sharing @kostofff!
Joshua Simka's avatar
Has Marks expressed any opinions publicly on Cathie Wood? (Is he one to comment/opine on managers?)
Joshua Simka's avatar
@kostofff Thank you! Intriguing! Looks in this case like she called him out first

She goes on to cite Jeff Gundlach, Ray Dalio and me, and maybe Stan Druckenmiller, as being concerned about a deflationary bust. (To be honest, my only comment possibly relevant to that assertion was to say that technological gains can be a deflationary factor – not that the overall result would be deflation.)
Todor Kostov's avatar
@tomato Exactly! Mr Marks is such a humble and incredible guy.
Todor Kostov's avatar

Folowing up on his memo, Howard Marks was a guest in the 'Lunch with the FT' this week:

Dave Ahern's avatar
@kostofff sweet, 🙏