Mebane Faber Continues to Prove That He's a Savvy Investor
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The latest edition of Forbes magazine contained another spot-on article by Meb Faber, Chief Investment Officer of Cambria Investment Management, Inc. ("CIMI"). Under the heading of full disclosure, I'm an investor and principal in CIMI.
Mebane notes that the new SEC form 13F requires all hedge funds with over $100 million under management to disclose their stock positions.
Wow, now we can all chase guys like Apaloosa Management's David Tapper, Greenlight Capital's David Einhorn, and the Baupost Group's Seth Klaman. What does that mean to the regular guy investor? Mebane explains that quite nicely. Tracking the "stars" can lead to some great ideas, even if you're not hedge fund rich!
Mebane also points out that a recent academic paper on Social Science Research Network, "Imitation is the Sincerest Form of Flattery" showed that simply by following in the wake of Warren Buffet's stock picks from 1976-2006, you would've outperformed the market by 11% per year! Do the math!
The "stars" are picking up ESV (an offshore driller), no doubt because of the hammering all offshore drilling companies in the wake of the BP disaster in the Gulf of Mexico.
Read more about Mebane's ideas on page 88 of the August 30, 2010 Forbes magazine.
Don't say I didn't tell you so. www.cambriainvestments.com.
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