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Invest With The House: Hacking The Top Hedge Funds
Picking stocks is hard—and competitive. The most talented investors in the world play this game, and if you try to compete against them, it’s like playing against the house in a casino. Luck can be your friend for a while, but eventually the house wins. But what if you could lay down your bets with the house instead of against it? In the stock market, the most successful large investors—particularly hedge fund managers—represent the house. These managers like to refer to their top investments as their “best ideas.” In this book, you will learn how to farm the best ideas of the world’s top hedge fund managers. You will learn who they are, how to track their funds and stock picks, and how to use that information to help guide your own portfolio. In essence, you will learn how to play more like the house in a casino and less like the sucker relying on dumb luck.
312 pages, Kindle Edition
Published January 7, 2016
109 people are currently reading
260 people want to read
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Displaying 1 - 15 of 15 reviews
January 9, 2016
Solid book as usual from Meb Faber.
Does a good job showing the usefulness of following 13-F filings by profiling how the clone portfolios of some of the best hedge fund managers in the business would have done. Also goes into some of the important considerations you need to make when choosing which managers to follow.
I've read this a few times in various forms by now (read the chapters as he sent them out on the Idea Farm as well as the final book) and they are just a good and informative read.
Does a good job showing the usefulness of following 13-F filings by profiling how the clone portfolios of some of the best hedge fund managers in the business would have done. Also goes into some of the important considerations you need to make when choosing which managers to follow.
I've read this a few times in various forms by now (read the chapters as he sent them out on the Idea Farm as well as the final book) and they are just a good and informative read.
February 4, 2017
Research paper wrapped as a book
You'll get everything you need to know about this topic by reading 10 bullet points handily outlined at the end. Everything else is optional.
Author raises a good relevant question and presents solid findings, just this writing could save a lot of time for readers if it was written like a research paper (that is essentially is) - executive summary followed by data for specific managers for those interested.
You'll get everything you need to know about this topic by reading 10 bullet points handily outlined at the end. Everything else is optional.
Author raises a good relevant question and presents solid findings, just this writing could save a lot of time for readers if it was written like a research paper (that is essentially is) - executive summary followed by data for specific managers for those interested.
July 26, 2021
The book that resonates with Mohnish Pabrai’s philosophy - anyone making trades greater than $100M, producing a consistent CAGR beating the S&P, and has a buy-and-hold strategy copy their 13Fs.
“Investing is the intersection of economics and psychology,” Klarman said. “The economics—the valuation of the business—is not that hard. The psychology—how much do you buy, do you buy it at this price, do you wait for a lower price, what do you do when it looks like the world might end —those things are harder.”
Klarman went on to say that some people are born with the nerve and intuition to be great investors: “For me, it is natural. For a lot of other people it is fighting human nature.”
- Seth Klarman 17% CAGR
“Investing is the intersection of economics and psychology,” Klarman said. “The economics—the valuation of the business—is not that hard. The psychology—how much do you buy, do you buy it at this price, do you wait for a lower price, what do you do when it looks like the world might end —those things are harder.”
Klarman went on to say that some people are born with the nerve and intuition to be great investors: “For me, it is natural. For a lot of other people it is fighting human nature.”
- Seth Klarman 17% CAGR
June 3, 2019
It's a very good book of you're interested in learn how to copy the portfolio of the best hedge funds. The book tells you how to look for information about the company they own and also gives a bit of information of more than 20 hedge funds, such as the performance vs sp500, way of investing of the managers, etc
June 13, 2022
Great book. What I love about Faber is the data and well researched conclusions. This book too does justice to his acumen in finding a pattern and offering a niche way for retail investors to track hedge funds. I am definitely going to try implement in my portfolio. Hit me up if anyone needs updates on how I am pursuing it
April 10, 2018
Nice overview of different Hedge fund managers but no more substance
This little book gives an overview of some of the best hedge fund managers and how their funds have performed over time and how anybody could imitate them. But it does not go any deeper than that.
This little book gives an overview of some of the best hedge fund managers and how their funds have performed over time and how anybody could imitate them. But it does not go any deeper than that.
May 13, 2023
Ironically, a few weeks before I read this my private investment advisor issued a letter stating how bad of an idea it is for people to follow his 13F's and cited numerous reasons given the actual holdings, what things aren't required to be shown, what valuations they were purchased at, etc
November 27, 2017
An interesting strategy to generate alpha, although it is not practical when it comes to Indian markets, at least yet.
July 12, 2018
Strictly for value investing fans. Various successful value investors are profiled
October 19, 2020
Interesting approach to generate alpha. However, once everyone knows it, does it still hold value?
August 20, 2016
Investing is a zero sum game. One persons win is another's loss. The house always wins in the end. In this book, Faber says the house is the professional managers. Faber puts forth a method of cloning the successful hedge fund managers on your own. To invest with a hedge fund you need to be a qualified investor ($5 million net worth, $2 million of investble assets), out of reach for a good many of us.
Using the hedge funds' quarterly 13-F filings you can get their top ten holdings and purchase on your own. You avoid the 2% management fee and the 20% gains fee paid to the fund. Though the information is 45-89 days old, it shouldn't make a significant difference, says Faber, as these funds hold for the long term. Faber constructs clone funds of numerous hedge funds and back-tests them to year 2000, and all significantly outperformed the S&P 500 benchmark. Of course, past results are not a guarantee of future performance.
Interesting book but a bit tedious.
Using the hedge funds' quarterly 13-F filings you can get their top ten holdings and purchase on your own. You avoid the 2% management fee and the 20% gains fee paid to the fund. Though the information is 45-89 days old, it shouldn't make a significant difference, says Faber, as these funds hold for the long term. Faber constructs clone funds of numerous hedge funds and back-tests them to year 2000, and all significantly outperformed the S&P 500 benchmark. Of course, past results are not a guarantee of future performance.
Interesting book but a bit tedious.
April 26, 2016
The book is quite well intentioned but comes across as a collection of 13F filings, albeit analyzed with clone portfolios and stock lists, with the investor's biography. No where is the stock selection rationale which would have added great value to the book. Read this IF you wish to backtest strategies or see popular stocks in the USA market, otherewise can give this a miss
September 28, 2016
It is a list of a hedge funds. General idea is good but nothing new James Altucher in Forever Portfolio in 2008 expressed the same idea on much more interesting way and his picks made a huge gains by today. Personally book was wasting of time for me.
May 5, 2025
Pretty much just Faber talking about a couple of long-term equity hedge funds.
July 2, 2017
In a nutshell, gather the top 10 stocks in the top 10 fund managers portfolio and make your own one.
Clone Portfolio is what it is called!
Interesting read if you follow US Stock markets.
Clone Portfolio is what it is called!
Interesting read if you follow US Stock markets.
Displaying 1 - 15 of 15 reviews