John Hussman

John Hussman

Last Update: 2014-11-10

Number of Stocks: 201
Number of New Stocks: 36

Total Value: $1,170 Mil
Q/Q Turnover: 24%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

John Hussman' s Profile & Performance

Profile

Dr. Hussman is the president and principal shareholder of Hussman Strategic Advisors, the investment advisory firm that manages the Hussman Funds. He is also the President of the Hussman Investment Trust. Dr. Hussman manages Hussman Strategic Growth Fund, which invests primarily in U.S. stocks, and Hussman Strategic Total Return Fund, which invests primarily in U.S. Treasury and government agency securities.

From the fund inception in July 2000 to Oct. 31, 2008 , his Hussman Strategic Growth Fund averaged 9.9% a year, and has a cumulative gain of 118%, while the S&P500 lost more than 23%. For the 12 months ended Oct. 31, 2008 , his fund lost 0.3%, while the S&P500 lost more than 40%.

Prior to managing the Hussman Funds, Dr. Hussman was a professor of economics and international finance at the University of Michigan . His academic research centers on market efficiency and information economics. Dr. Hussman holds a Ph.D. in economics from Stanford University (1992), and two degrees from Northwestern University : a Masters degree in education and social policy (1985) and a bachelors degree in economics (1983, Phi Beta Kappa).

Web Page:http://hussmanfunds.com/

Investing Philosophy

Dr. Hussman looks at two dimensions of information to adjust his willingness to take risk. The first is valuation. F avorable valuation means that stock prices appear reasonable in view of the stream of earnings, dividends, revenues and cash flows expected in the future. The second dimension is the quality of market action . Market action considers the behavior of a wide range of securities and industry groups, in an attempt to assess the economic outlook of investors and their willingness to accept market risk.

These two dimensions of information make up four basic "Market Climates" associated with various combinations of valuation and market action. For stocks, in order of most favorable to least favorable, these Climates are: favorable valuation / favorable market action, unfavorable valuation / favorable market action, favorable valuation / unfavorable market action, and unfavorable valuation / unfavorable market action.

In the most favorable Climates, Dr. Hussman will typically hold an aggressive allocation to market risk, while in the least favorable Climates, he will typically attempt to remove the impact of market fluctuations from the portfolio through hedging (Strategic Growth Fund) or reduction in the average maturity of bond holdings (Strategic Total Return Fund). The most defensive position is a fully hedged position in which the entire value of long positions is hedged.

Dr. Hussman writes a weekly commentary which provides deep insight about current stock market valuations and actions. We strongly encourage our users to read them. As of Nov. 23, he thinks that the market is at favorable valuation level but unfavorable market actions. He is 65% hedged with his equity portfolio.

Total Holding History

Performance of Hussman Strategic Growth Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
2013-6.6231.55-38.2
2012-12.6215.4-28.0
20111.642.08-0.4
3-Year Cumulative-17.1 (-6%/year)55 (15.7%/year)-72.1 (-21.7%/year)
2010-3.6215.06-18.7
20094.6326.46-21.8
5-Year Cumulative-16.4 (-3.5%/year)125.5 (17.7%/year)-141.9 (-21.2%/year)
2008-9.02-3728.0
20074.165.61-1.5
20063.5115.79-12.3
20055.714.910.8
20045.1612-6.8
10-Year Cumulative-8.8 (-0.9%/year)104.1 (7.4%/year)-112.9 (-8.3%/year)
200321.0828.7-7.6
200214.02-22.136.1
200114.67-11.926.6
200016.4-9.125.5

Top Ranked Articles

Market Valuations and Expected Returns as of April 2012
Stock market had one of the best first quarter in many years. The factors that had driven down the market seem to have gone away to investors. All three of Down, S&P 500 and Nasdaq index are sitting above their multi-year highs. As always, we want to remind you again that higher past returns always means lower future returns and higher risks. Now it is time for our monthly review of the general market valuation and the expected returns again. Read more...
Market Valuations and Expected Returns – Feb. 5, 2014
The U.S. stock market had an excellent 2013. The performance of all three major U.S. stock indexes was the best since the financial crisis in 2008. The S&P 500 and the Dow Jones Industrial Average continually hit historical highs. Yet the real reason for the bull market is nothing less than QE. Though some investors think the fundamentals of the U.S. economy continued to improve, for most Wall Street analysts, the Fed’s $85 billion monthly debt purchase plan is the real driving force behind the bull market. Read more...
Cheap Stocks Keep Getting Cheaper: Fundamentals and Warning Signs
Last year, several large, well-known companies became cheap enough to attract numerous big value investors. The big question surrounding many of these companies was whether they would overcome their problems, or were in permanent decline. Now several of the companies that seemed cheap then have gotten even cheaper. Read more...
How Should We Look at John Hussman's Performance Numbers?
Economist and fund manager Dr. John Hussman is drawing a lot of criticism these days for the poor performance of his funds. It seems to be fair and the reason is simple and straightforward: He is having some rough years and his performance numbers look bad. These are the annualized performance numbers of the Hussman Strategic Growth Fund as of Dec. 31, 2012: Read more...
Beware of the Dreaded Anchoring Bias (Citigroup Inc. as an Example) Beware of the Dreaded Anchoring Bias
Now that financial Armageddon is apparently off the table and markets have begun to stabilize a bit, is it time for investors to get back to good old fashioned stock picking? In other words, going forward will bottom up analysis of individual securities again be more important than the top down, macroeconomic view? Of course any definitive answer to those questions would be nothing more than speculation. However, if is it the case that company specific fundamentals are more likely to drive share prices now that the volatility has subsided, investors would be smart to revisit a couple of biases that could lead to poor returns. Accordingly, over the next few posts I will examine some of these biases and how they often play out among stock market participants.  Read more...
» More John Hussman Articles

Commentaries and Stories

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Garmin Is Somewhat Expensive At These Levels
In this article, let's take a look at Garmin Ltd. (GRMN), a $10.32 billion market cap company that provides navigation, communications and information devices for the aviation, marine, general recreation, automotive, wireless and OEM markets. More...

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CH Robinson Worldwide Has Plenty of Room to Grow
In this article, let's take a look at CH Robinson Worldwide Inc. (CHRW), a $10.64 billion market cap company that is a global provider of multimodal transportation and logistics solutions and has a network of more than 230 offices in North America, South America, Europe and Asia. More...

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T Rowe Price's Top Stakes for the Third Quarter
In recent days hedge funds have been filing form 13-F, which is a quarterly report of equity holdings by filed institutional investment managers with at least $100 million in equity assets under management, as required by the United States Securities and Exchange Commission (SEC). In this article, let´s concentrate in one particular hedge fund and try to see the principal holdings in its portfolio. I will look into T Rowe Price Associates Inc. More...

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Market Valuations and Expected Returns – December 4, 2014 John Hussman,Warren Buffett - Market Valuations And Expected Returns – December 4, 2014
In January 2014, the stock market benchmark S&P 500 lost 3.36% after an excellent 2013. The enthusiasm came back as the market gained 4.31% over February. In March, it was essentially flat. In April, it was about even for the whole month. In May, the market gained 2.1% and in June, the S&P 500 went up 1.91%. In July, the market went down by 1.51%. However, the market gained 3.77% over August, which was the second-biggest monthly gain since 2014. Throughout October, the market benchmark S&P 500 earned 2.32% after the decline of 1.55% in September. In November, the market went up by 2.45%. More...

warren buffett, jeremy grantham, daniel loeb, robert olstein, john hussman, ron baron, shiller p/e, buffett indicator, dividends


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John Hussman Purchases 36 New Stocks in Q3 2014 John Hussman - John Hussman Purchases 36 New Stocks In Q3 2014
John Hussman (Trades, Portfolio) is the president of Hussman Strategic Advisors, an advisory firm that manages the Hussman Funds. He manages the Hussman Strategic Growth Fund and the Hussman Strategic Total Return Fund, which invests primarily in U.S. Treasury and government agency securities. More...

JOHN HUSSMAN, HUSSMAN FUNDS, CATERPILLAR, KIMBERLY-CLARK, HELMERICK & PAYNE, QUESTCOR PHARMACEUTICALS


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Caterpillar's Acquisitions and International Expansion
In this article let's take a look at Caterpillar Inc. (CAT), the world's largest producer of earthmoving equipment and a big maker of electric power generators and engines used in petroleum markets and mining equipment. More...

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Market Valuations and Expected Returns – November 11, 2014 Warren Buffett,John Hussman - Market Valuations And Expected Returns – November 11, 2014
In January 2014, the S&P 500 lost 3.36% after an excellent 2013. The enthusiasm came back as the market gained 4.31% over February. In March, it was essentially flat. In April, it was about even for the whole month. In May, the market gained 2.1% and in June, the S&P 500 went up 1.91%. In July, the market went down by 1.51%. However, the market gained 3.77% over August, which was the second-biggest monthly gain since 2014. Throughout October, the market benchmark S&P 500 earned 2.32% after the decline of 1.55% in September. More...

Market valuation


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Weekly Guru Bargains Highlights: EC, LVS, BHI, PBR, NBL
According to GuruFocus updates, these stocks have declined the most since Gurus have bought. More...

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Weekly Guru Bargains Highlights: PBR, DB, EC, BHI
According to GuruFocus updates, these stocks have declined the most since Gurus have bought them. More...

Petroleo Brasileiro, Bestinfond, Deutsche Bank, Mario Gabelli, Ecopetrol, James Barrow, Baker Hughes, John Hussman,


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On The Tendency Of Large Market Losses To Occur In Succession – John Hussman
Abrupt market losses typically reflect compressed risk premiums that are then joined by a shift toward increased risk aversion by investors. In market cycles across history, we find that the distinction between an overvalued market that continues to become more overvalued and an overvalued market is vulnerable to a crash often comes down to a subtle but measurable shift in the preference or aversion of investors toward risk – a shift that we infer from the quality of market action across a wide range of internals. Valuations give us information about the expected long-term compensation that investors can expect in return for accepting market risk. But what creates an immediate danger of air-pockets, freefalls and crashes is a shift toward risk aversion in an environment where risk premiums are inadequate. One of the best measures of investor risk preferences, in our view, is the uniformity or dispersion of market action across a wide variety of stocks, industries and security types. More...

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Air Pockets, Free Falls and Crashes – John Hussman
“Abrupt market weakness is generally the result of low risk premiums being pressed higher. There need not be any collapse in earnings for a deep market decline to occur. The stock market dropped by half in 1973-74 even while S&P 500 earnings grew by over 50%. The 1987 crash was associated with no loss in earnings. Fundamentals don't have to change overnight. There is in fact zero correlation between year-over-year changes in earnings and year-over-year changes in the S&P 500. Rather, low and expanding risk premiums are at the root of nearly every abrupt market loss. More...

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Market Valuations and Expected Returns - October 3, 2014 John Hussman,Warren Buffett - Market Valuations And Expected Returns - October 3, 2014
In January 2014, the stock market benchmark S&P 500 lost 3.36% after an excellent 2013. The enthusiasm came back as the market gained 4.31% over February. In March, it went up only 0.69%. In April, it was about even for the whole month. In May, the market gained 2.1% and in June, the S&P 500 went up 1.91%. In July, the market went down by 1.51%. However, the market gained 3.77% over August, which was the second-biggest monthly gain since 2014. Throughout September, the market declined 1.55%. More...

Market valuation


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John Hussman – The Ingredients Of A Market Crash
“The information contained in earnings, balance sheets and economic releases is only a fraction of what is known by others. The action of prices and trading volume reveals other important information that traders are willing to back with real money. This is why trend uniformity is so crucial to our Market Climate approach. Historically, when trend uniformity has been positive, stocks have generally ignored overvaluation, no matter how extreme. When the market loses that uniformity, valuations often matter suddenly and with a vengeance. This is a lesson best learned before a crash rather than after one. Valuations, trend uniformity, and yield pressures are now uniformly unfavorable, and the market faces extreme risk in this environment.” More...

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Paul Tudor Jones, John Buckingham and Jim Simons Long in Coach John Hussman,Joel Greenblatt,David Rolfe,Jeremy Gr - Paul Tudor Jones, John Buckingham And Jim Simons Long In Coach
In this article, let's take a look at Coach Inc. (COH), a $10.21 billion market cap company that designs, makes and markets fine accessories for women and men, including handbags, weekend and travel accessories, outerwear, footwear and business cases. More...

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John Hussman – The Two Pillars of Full-Cycle Investing
Despite my reputation in recent years as a “permabear,” I’ve actually had quite a variable relationship with equity risk across three decades in the financial markets, and that relationship has always depended on market and economic conditions. It’s difficult to judge stocks as “good” or “bad” investments without reference to valuations and other factors. For example, after the 1990 bear market, I had a reputation as a “lonely raging bull” and advocated a leveraged stance in equities for years, based on a combination of reasonable valuation and strong market internals. While investors worried about weak consumer confidence, I frequently noted that weak confidence is correlated with strong subsequent market returns. It’s the combination of high confidence, lopsided bullishness, overvaluation and overbought multi-year advances that opens a chasm into which the market ultimately plunges. History is remarkably consistent on this point, and it requires discipline to avoid that damage. Reducing exposure to risk in these conditions is the first pillar of full-cycle investing. More...

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Market Valuations and Expected Returns – September 4, 2014 John Hussman,Jeremy Grantham,Ron Baron,Steven Romi - Market Valuations And Expected Returns – September 4, 2014
In January 2014, the stock market benchmark S&P 500 lost 3.36% after the excellent 2013. The enthusiasm went back as the market gained 4.31% over February. In March, it went up only 0.69%. In April, it was about even for the whole month. In May, the market gained 2.10% and in June, the market benchmark S&P 500 went up 1.91%. In July, the market went down by 1.51%. However, the market gained 3.77% over August, which was the second-biggest monthly gain since 2014. More...

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John Hussman’s Second Quarter 2014 Letter to Shareholders John Hussman - John Hussman’s Second Quarter 2014 Letter To Shareholders
Dear Shareholder, More...

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The Price of Being Different John Hussman,Jean-Marie Eveillard,Warren Buffett - The Price Of Being Different
Back in April, I wrote an article discussing Howard Marks (Trades, Portfolio)’ memo Dare to Be Great II; in the memo, Mr. Marks said the following: More...

LONG BRK.B


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I Think Juniper Still Has Plenty of Room
In this article, let's take a look at Juniper Networks, Inc. (JNPR), a $10.61 billion market cap company, which provides Internet Protocol networking products and services, with an emphasis on telecom routing solutions. More...

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Broken Links: Fed Policy and the Growing Gap Between Main Street and Wall Street - John Hussman John Hussman - Broken Links: Fed Policy And The Growing Gap Between Main Street And Wall Street - John Hussman
When the majority of Americans examine the world around them, they see a stock market at record highs and modest apparent improvement in the economy, but they also have the sense that something remains terribly wrong, and they can’t quite put their finger on it. According to a recent survey by the Federal Reserve, 40% of American families report that they are “just getting by,” and 60% of families do not have sufficient savings to cover even 3 months of expenses. Even Fed Chair Janet Yellen seemed puzzled last week by the contrast between a gradually improving unemployment rate and persistently sluggish real wage growth. More...

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User Comments

Wal
ReplyWal - 7 months ago
How can you follow the investment methodology of Dr.John Hussman (Trades, Portfolio), when his fund has been loosing money for the past 5 years, and is rated 1 star only by Morningstar rating?
Am I missing something in here?
Traderatwork
ReplyTraderatwork - 9 months ago
S&P went up 100%+ in last 6 years,

Hussman fund last 5 years annual return is -3.5% EVERY YEAR!!!

Guru? Really?






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