- As CNN Money reported at the time: "In a letter to investors, Robertson, Tiger's 67-year-old chief, wrote 'As you have heard me say on many occasions, the key to Tiger's success over the years has been a steady commitment to buying the best stocks and shorting the worst. In a rational environment, this strategy functions well. But in an irrational market, where earnings and price considerations take a back seat to mouse clicks and momentum, such logic, as we have learned, does not count for much.' And so, a 20-year run of 20+% annual hedge fund returns came to a close."
- We include six asset classes, each of which is only lightly correlated with mainstream stocks and bonds, and each of which is positively correlated with changes in U.S. inflation rates and inflation expectations: TIPs, commodities, and REITs, and the diversifying asset classes of high yield, emerging market local-currency bonds, and emerging market equities.
- The October 2015 Research Affiliates Fundamentals "Investing versus Flipping" discusses the historical relative valuation of U.S. equities and EM equities in greater detail.
- Our methodology and assumptions are explained on our Asset Allocation site.
- This is represented by an equally weighted basket of both traditional and stealth inflation-fighting asset classes, including high yield, commodities, REITs, EM local debt, and EM equities. More information is available on our Asset Allocation site.
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Rob Arnott, Chief Executive Officer, Research Affiliates, LLC