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Loews Corp's Value Investing CEO Jim Tisch Thinks Hedge Fund Managers Are Envious of Him

June 06, 2013 | About:
Canadian Value

Canadian Value

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Loews Corp (L) owns 90% of insurer CNA Financial (CNA) which has a large float of cash to invest. Because of that Loews CEO Tisch is regularly looking for opportunities to invest in various hedge funds.

According to Tisch he is very leery of investing with the larger hedge funds that have $10 billion or more to manage. His reason for being leery is that size kills returns. Generating outsized returns on $10 billion is very difficult.

Tisch also notes that the hedge fund managers that he speaks to are jealous of him because his capital is permanent. Where a hedge fund manager can have his business destroyed through redemptions after just a quarter or two of underperformance, Tisch can wait and play out his hand.

Below is a lengthy interview with this member of a true value investing family:

  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

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About the author:

Canadian Value
http://valueinvestorcanada.blogspot.com/

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