John Hussman

John Hussman

Last Update: 02-02-2015

Number of Stocks: 188
Number of New Stocks: 39

Total Value: $1,006 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 (%)
2014-8.513.69-22.2
2013-6.6232.39-39.0
2012-12.6216-28.6
3-Year Cumulative-25.3 (-9.3%/year)74.6 (20.4%/year)-99.9 (-29.7%/year)
20111.642.11-0.5
2010-3.6215.06-18.7
5-Year Cumulative-26.9 (-6.1%/year)105.1 (15.5%/year)-132 (-21.6%/year)
20094.6326.46-21.8
2008-9.02-3728.0
20074.165.49-1.3
20063.5115.79-12.3
20055.714.910.8
10-Year Cumulative-20.7 (-2.3%/year)109.4 (7.7%/year)-130.1 (-10%/year)
20045.1610.88-5.7
200321.0828.68-7.6
200214.02-22.136.1
200114.67-11.8926.6
200016.4-9.125.5
15-Year Cumulative53.8 (2.9%/year)86.4 (4.2%/year)-32.6 (-1.3%/year)

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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Market Valuations and Expected Returns – April 2, 2015 John Hussman,Warren Buffett - Market Valuations And Expected Returns – April 2, 2015
The market was up more than 30% in 2013, the best year since the go-go years of 1990s. 2014 was another strong year for the market. The S&P 500 index was up more than 13%. Since the market recovery in 2009, the stock market has been up for 6 consecutive years. Yet in January 2015, the stock market benchmark S&P 500 lost 3.10%. In February, the market regained its strength by increasing 5.49%. Throughout March, the market went down by 1.74%. Can the market continue to grow in 2015? More...

Market valuation


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Eating Our Seed Corn: The Causes Of U.S. Economic Stagnation and the Way Forward – John Hussman
Executive summary More...

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Estimate for Patterson Companies' Intrinsic Value Equals the Market Price
In this article, let's take a look at Patterson Companies, Inc. (PDCO), a $5.16 billion market cap company, which distributes dental, veterinary, and rehabilitation supplies. More...

Patterson Companies


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What Does That Difference Mean – John Hussman John Hussman - What Does That Difference Mean – John Hussman
We continue to observe one of the most overvalued, overbought, overbullish syndromes in the historical record, combined – and this feature is central – with deterioration in market internals suggestive of a shift toward risk-averse preferences among investors. The resulting combination places current conditions among instances that we identify as a “Who’s Who of Awful times to Invest” (see last week’s comment:Plan to Exit Stocks in the Next 8 Years? Exit Now). Based on historical outcomes associated with those prior instances (which prior to the current market cycle, include only 1929, 1972, 1987, 2000 and 2007), we continue to view the stock market as vulnerable to significant downside risk both in the near-term and over the completion of the present market cycle. More...

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Plan To Exit Stocks In The Next 8 Years? Exit Now – John Hussman
Unless we observe a rather swift improvement in market internals and a further, material easing in credit spreads – neither would relieve the present overvaluation of the market, but both would defer our immediate concerns about downside risk – the present moment probably represents the best opportunity to reduce exposure to stock market risk that investors are likely to encounter in the coming 8 years. More...

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Tupperware Brands – Short-Term Dip Provides Long-Term Opportunity
Tupperware Brands (TUP) is a current selection of GuruFocus’ Undervalued Predictable Companies screen. This screen looks for undervalued companies that are highly ranked based on GuruFocus’ Predictability Rank (read more: What is Predictability Rank). We have found strong correlations between the predictability of businesses and the long-term return of stocks, as shown in the table below. More...

RETAIL,TUPPERWARE


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Latin America Should Provide Growth Opportunities
Let's take a look at DirecTV (DTV), a $43.95 billion market cap company that is engaged in providing digital television entertainment in the U.S. and Latin America. Let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment. More...

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Cisco´s Results Beat Wall Street Expectations Charles Brandes,John Hussman - Cisco´s Results Beat Wall Street Expectations
In this article, let's take a look at Cisco Systems, Inc. (CSCO), a $148.81 billion market cap company, which is a tech giant and today is a trending stock in the market. More...

EARNINGS REPORT, REVENUE, VALUATIONS


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Charles Brandes' Top Buys During Q4 Charles Brandes,John Hussman,Chuck Royce,Brian Rog - Charles Brandes' Top Buys During Q4
Charles Brandes (Trades, Portfolio) founded Brandes Investment Partners in 1974, which manages a variety of global equity and fixed-income assets for investors worldwide. More...

CHARLES BRANDES, BRANDES INVESTMENT PARTNERS


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Market Valuations and Expected Returns – February 10, 2015 John Hussman,Warren Buffett - Market Valuations And Expected Returns – February 10, 2015
The market was up more than 30% in 2013, the best year since the go-go years of the 1990s. 2014 was another strong year for the market. The S&P 500 index was up more than 13%. Since the market recovery in 2009, the stock market has been up for 6 consecutive years. Yet in January 2015, the stock market benchmark S&P 500 lost 3.10%. Can the market continue to grow in 2015? More...

VALUE INVESTING, DIVIDEND


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Expect A Decade of 1.7% Annual Returns From Conventional Asset Mix – John Hussman
Friday’s employment report showed a 257,000 increase in January non-farm payrolls. This news was followed by a spike in Treasury yields up to 1.96%, a 4% plunge in utility stocks, a 5% plunge in precious metals shares, and took the S&P 500 within a fraction of a percent of December’s record high, before a late-day retreat. These frantic market movements smack of an investment climate dominated by one-dimensional “theme” based behavior – where asset prices have been amped up on yield-seeking speculation, but where the most marginal change in the outlook can trigger a race for the hills or a pile-on, depending on whether the asset has features that are consistent with that theme. On Friday, the knee-jerk reaction was that stronger employment will prompt the Federal Reserve to raise interest rates sooner, creating a scramble to get out of yield-sensitive Treasury bonds and utilities, to buy dollars, and to sell foreign currencies and gold. Of course, in equilibrium, there must be someone on the other side of those trades, so prices moved to the extent needed to find that match. More...

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A Look at John Hussman's Recent Additions to His Portfolio John Hussman - A Look At John Hussman's Recent Additions To His Portfolio
John Hussman (Trades, Portfolio) of Hussman Strategic Advisors, Inc. is known for not holding back on sharing his opinions about the government's handling of the nation's financial state. He has openly criticized the U.S. Treasury and the Federal Reserve. He is also known for predicting the U.S. Recession in 2008-2009 and since the end of 2009, he has been calling for another financial crisis to come along due to the poor policy choices made by the government. More...

JOHN HUSSMAN, STOCKS, MEDICAL DEVICES, APPLICATION SOFTWARE, COMMUNICATION SERVICES, MEDICAL DIAGNOSTICS AND RESEARCH


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Market Action Suggests Abrupt Slowing Of Economic Activity – John Hussman
The combination of widening credit spreads, deteriorating market internals, plunging commodity prices and collapsing yields on Treasury debt continues to be most consistent with an abrupt slowing in global economic activity. Generally speaking, joint market action like this provides the earliest signal of potential economic strains, followed by the new orders and production components of regional purchasing managers indices and Fed surveys, followed by real sales, followed by real production, followed by real income, followed by new claims for unemployment, and confirmed much later by payroll employment. Stronger conclusions, particularly about the U.S. economy, will require more evidence, but from a global perspective, these pressures are already quite evident. More...

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Weekly 3-Year Low Highlights: BNS, CAT, NOV, YNDX
According to GuruFocus list of 3-year lows, Bank of Nova Scotia, Caterpillar Inc, National Oilwell Varco Inc, and Yandex NV have all reached their 3-year lows. More...

WEEKLY, 3, YEAR, LOW, HIGHLIGHTS


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John Hussman: QE and the ECB - "Authorize" Is A Slippery Word
Last week, the Swiss National Bank abandoned its attempt to tie the Swiss franc to the euro. For the past three years, the SNB has been trying to keep the franc from appreciating relative to the rest of Europe by accumulating euros and issuing francs. As the size of Switzerland’s foreign exchange holdings began to spiral out of control, Switzerland finally pulled the plug. The Swiss franc immediately soared by 49% (from 0.83 euros/franc to 1.24 euros/franc), but later stabilized to about 1 euro/franc. While numerous motives have been attributed to the Swiss National Bank, the SNB made its reasons clear: "The euro has depreciated considerably against the US dollar and this, in turn, has caused the Swiss franc to weaken against the US dollar. In these circumstances, the SNB concluded that enforcing and maintaining the minimum exchange rate for the Swiss franc against the euro is no longer justified." In effect, the SNB simply did what the German Bundesbank wishes it could do: abandon the policies of European Central Bank president Mario Draghi, and the euro printing inclinations he embraces. More...

John Hussman


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A Better Lesson Than This Time Is Different – John Hussman John Hussman - A Better Lesson Than This Time Is Different – John Hussman
In June, we completed a very challenging transition in our methods of classifying market return/risk profiles. That transition started with my 2009 insistence on stress-testing our methods against Depression-era data, resulted in ensemble methods that were stronger across history than our pre-2009 methods, but failed to sufficiently capture certain bubble-tolerant features of those methods, and was completed when we adapted by imposing variants of those features as a set of overlays – largely relating to market internals, credit spreads, and other factors that I’ve often referred to as “trend uniformity.” More...

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Weekly Guru Bargains Highlights: TOT, NOV, APC, FCX, HAL
According to GuruFocus updates, these stocks have declined the most since Gurus have bought. More...

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The Line Between Rational Speculation and Market Collapse – John Hussman
The Shiller P/E (S&P 500 divided by the 10-year average of inflation-adjusted earnings) is now 27, versus a long-term historical norm of 15 prior to the late-1990s bubble. Importantly, the profit margin embedded into the Shiller P/E is currently 6.7% versus a historical norm of just 5.4%. The implied margin is simply the denominator of the Shiller P/E divided by current S&P 500 revenues (the ratio of trailing 12-month earnings to revenues is even higher at 8.9%). As I showed in Margins, Multiples and the Iron Law of Valuation, taking this embedded margin into account significantly improves the usefulness and correlation of the Shiller P/E in explaining actual subsequent market returns. With this adjustment, the margin-adjusted Shiller P/E is now nearly 34, easily more than double its historical norm. More...

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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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User Comments

Returns
ReplyReturns - 3 months ago
John Hussman (Trades, Portfolio), I think, has a set of unique investment views.
Returns
ReplyReturns - 3 months ago
John Hussman (Trades, Portfolio) has a quite unique set of market-related and investment views, I think
Returns
ReplyReturns - 3 months ago
John Hussman (Trades, Portfolio), in my view,displays an arrogance (that is, writes freely available weekly columns that - over the last five years - has basically labelled the market expensive, using criteria that, I think, he believes is only available to him )and market-ignorance (that is, he writes as one actually believing he can forecast the market's future - despite his forecasts and investment performance being consistently grossly inadequate.

I believe that, because of the above serious personality associated inappropriateness, John Hussman (Trades, Portfolio) should not be entrusted to manage others' investment funds.

My resultant opinion is that all investors remove their funds from his management.
Wal
ReplyWal - 11 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 - 1 year 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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