John Hussman

John Hussman

Last Update: 2014-05-01

Number of Stocks: 197
Number of New Stocks: 33

Total Value: $1,334 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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Market Valuations and Expected Returns - July 2, 2014 John Hussman,Jeremy Grantham - Market Valuations And Expected Returns - July 2, 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%. The market continuously hit the record high. The close price of S&P 500 was 1973.32 on July 1, 2014. More...

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Market Valuations and Expected Returns - June 5, 2014 John Hussman,Jeremy Grantham - Market Valuations And Expected Returns - June 5, 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. And in May, the market gained 2.10%. More...

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Market Peaks Are a Process - John Hussman
“Regardless of very short-term market direction, it is urgent for investors to understand where the equity markets are positioned in the context of the full market cycle. While the most extreme overvalued, overbought, overbullish, rising-yield syndrome we define has generally appeared only at the most wicked market peaks in history, investors have ignored those conditions over the past year. We can’t be certain when the deferred consequences will emerge. But a century of market history provides strong reason to believe that any intervening gains will be wiped out in spades. More...

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John Hussman's Wine Country Conference 2014 Presentation and Q&A John Hussman - John Hussman's Wine Country Conference 2014 Presentation And Q&A
John Hussman (Trades, Portfolio)'s Wine Country Conference 2014 Presentation and Q&A More...

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John Hussman's Full Presentation from the Wine Country Conference
Hussman doesn't do many conferences; the ones that he does do are usually related to charity. More...

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Q&A with John Hussman - Wine Country Conference
In the video below Mebane Faber leads a question and answer session with John Hussman (Trades, Portfolio). More...

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Exit Strategy - John Hussman
The S&P 500 set a marginal new high on Friday, in the context of a broad rollover in momentum thus far this year that we view as likely – though of course not certain – to represent a broad cyclical peak of the sort that we observed in 2000 and 2007, as distinct from spike-peaks like 1987. Valuation measures remain extreme, with the market capitalization of nonfinancial stocks pushing 130% of GDP (relative to a pre-bubble norm of about 55%), the S&P 500 price/revenue ratio at 1.7, versus a pre-bubble norm of 0.8, and the Shiller P/E near 26 – which while lower than the 2000 extreme, exceeds every pre-bubble observation except for a few months approaching the 1929 peak. We presently estimate 10-year nominal total returns for the S&P 500 Index averaging just 2.3% annually, with zero or negative total returns on every horizon shorter than about 7 years. More...

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John Hussman - Setting the Record Straight
With advisory sentiment running at 56% bulls and fewer than 20% bears, with most historically reliablevaluation metrics about twice their pre-bubble norms (and presently associated with negative expected S&P 500 nominal total returns on every horizon of 7 years and less), with capitalization-weighted indices near record highs but smaller stocks and speculative momentum stocks diverging badly, and with a Federal Reserve clearly intent on winding down the policy of quantitative easing that has brought these distortions about, we continue to view the present market environment as among the most dangerous instances in history. More...

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It Rarely Pays to Be Pessimistic John Hussman,Warren Buffett - It Rarely Pays To Be Pessimistic
“Through all its vicissitudes and casualties, as earthshaking as they were unforeseen, it remained true that sound investment principles produced generally sound results. We must act on the assumption that they will continue to do so." More...

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These Leading Indicators Support Jeremy Grantham’s Market Call Jeremy Grantham,John Hussman - These Leading Indicators Support Jeremy Grantham’s Market Call
With the bull market being in its fifth year, the overall stock market is becoming expensive according to historic market valuations. The markets tend to follow cycles, and a bull market cannot go on forever without any setbacks. Jeremy Grantham (Trades, Portfolio) of GMO LLC, with an educated guess, thinks that the market will likely be positive over the next couple of years and have a large correction. Grantham states that it could drop by half using standard deviations and mean reversion. According to his latest newsletter, here are Grantham’s best guesses as to what will happen over the next two years: More...

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Market Valuations and Expected Returns – May 5, 2014 John Hussman,Brian Rogers - Market Valuations And Expected Returns – May 5, 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%. And in April, it was about even for the whole month. More...

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Cahm Viss Me Eef You Vahn to Live - John Hussman Weekly
“Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of good business conditions. The purchasers view the good current earnings as equivalent to ‘earning power’ and assume that prosperity is equivalent to safety.” More...

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Bearish Investor John Hussman's 5 Top New Stock Buys John Hussman - Bearish Investor John Hussman's 5 Top New Stock Buys
John Hussman (Trades, Portfolio), a market analyst and founder of the Hussman Funds, has a dire outlook for the markets, largely owing to Fed interference in them. He warned in his most recent weekly commentary: More...

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What Drives St. Jude Medical to Be More Diversified?
St. Jude Medical Inc. (STJ) is a global medical device company, which develops, manufactures and distributes cardiovascular medical devices. More...

LONG, HEALTHCARE, MEDICAL DEVICES, CARDIOVASCULAR


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The Future Is Now - John Hussman
“Even a return to median bull market valuations would be brutal for the most popular tech stocks. We’re not even talking about bear market valuations, and we’re making the leap of faith, contrary to the evidence, that the quality of current revenues is as high as those generated during the past decade. To illustrate the probable epilogue to the current bubble, we’ve calculated price targets for some of the glamour techs, based on current revenues per share, multiplied by the median price/revenue ratio over the bull market period 1991-1999. More...

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Hasbro Continues its Profitable Streak
Hasbro, Inc. (HAS) has been on the radar of many investment gurus like Paul Tudor Jones (Trades, Portfolio) and John Hussman (Trades, Portfolio) for some time now, given its position as the second largest toy manufacturer in the industry, only outranked by Mattel, Inc. (MAT). But the company’s first quarter earnings report showed that it could possibly outperform industry giant and rival Mattel in terms of growth, as Europe and Latin America registered 8% and 17% growth respectively, while Mattel saw declines in the same regions. Furthermore, quarterly earnings were driven mainly by the girls’ category, which sported a 20% increase in demand for My Little Pony, Equestria Girls, and Nerf Rebelle products. So, with More...

TOY INDUSTRY,LEISURE,MY LITTLE PONY,NERF,CAPTAIN AMERICA,MARVEL,TRANSFORMERS,SPIDERMAN


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The Federal Reserve's Two Legged Stool - John Hussman
Nice article this week from someone who knows our work well - Jonathan Laing, the senior editor at Barron’s Magazine. He emphasizes our concerns about valuation and the need to account for the effect of profit margin variation, which can "make stocks seem beguilingly cheap at market peaks," duly observes our miss in this half-cycle (though stress-testing wasn't discussed), “after deftly side-stepping the dotcom- and housing bubble-crashes," and adds "We expect some vindication of his obduracy may lie ahead.” No argument here. More...

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After a Spate of Acquisitions, It’s Time for Profits
Over the past few years, the leading media and marketing company in the U.S., Meredith Corporation (MDP), has made a point of purchasing company’s and brands that would enhance its interest in publishing, broadcasting, marketing, and interactive media. And although talks about acquiring Time Warner Inc. (TWX)’s Time magazine were unsuccessful, Meredith’s financial results and future outlook are still looking promising. While the current EPS growth rate of 6.3% is not stellar, management reiterated that the company’s acquisition load will contribute to the quarterly $302.1 million saved in operating expenses, due to a 1.4% decrease in production, distribution, and editorial costs. More...

MEDIA,MARKETING,ADVERTISEMENT,ENTERTAINMENT,BROADCASTING,PUBLISHING


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Market Valuations and Expected Returns – April 3, 2014 John Hussman,Warren Buffett - Market Valuations And Expected Returns – April 3, 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%. The market benchmark S&P 500 closed at 1890.90 on April 2, 2014, which is the new record high. Despite the market hit new highs continuously, there are signs that the economy might slow down. More...

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Should You Stay Away from Canon?
Canon Inc. (CAJ) and its subsidiaries are engaged in the manufacture and sale of office multifunction devices, plain paper copying machines, laser printers, inkjet printers, cameras and lithography equipment. More...

LONG, OFFICE, MULTIFUNCTION, DEVICES, COPYING MACHINES, LASER, PRINTERS, INKJET, CAMERAS, LITHOGRAPHY


Add Notes, Comments or Ask Questions

User Comments

Wal
ReplyWal - 2 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 - 4 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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