John Hussman

John Hussman

Last Update: 05-12-2016

Number of Stocks: 187
Number of New Stocks: 44

Total Value: $755 Mil
Q/Q Turnover: 41%

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 (%)
2015-8.41.19-9.6
2014-8.513.69-22.2
2013-6.6232.39-39.0
3-Year Cumulative-21.7 (-7.8%/year)52.3 (15.1%/year)-74 (-22.9%/year)
2012-12.6216-28.6
20111.642.11-0.5
5-Year Cumulative-30.5 (-7%/year)80.4 (12.5%/year)-110.9 (-19.5%/year)
2010-3.6215.06-18.7
20094.6326.46-21.8
2008-9.02-3728.0
20074.165.49-1.3
20063.5115.79-12.3
10-Year Cumulative-31.2 (-3.7%/year)102 (7.3%/year)-133.2 (-11%/year)
20055.714.910.8
20045.1610.88-5.7
200321.0828.68-7.6
200214.02-22.136.1
200114.67-11.8926.6
15-Year Cumulative21 (1.3%/year)107.5 (5%/year)-86.5 (-3.7%/year)
200016.4-9.125.5

Top Ranked Articles

John Hussman: Imagine The latest from John Hussman
Imagine the collapse of an extended speculative tech bubble, resulting in a broad economic recession. Imagine if the Federal Reserve had persistently slashed short-term interest rates during the downturn, to no avail, leaving rates at just 1% by the time the Standard & Poor's 500 had lost half of its value and the Nasdaq 100 collapsed by 83%. Imagine that the Fed kept rates suppressed, in the initially well-meaning hope of encouraging lending, growth and employment. Imagine that the depressed level of interest rates made investors feel starved for yield and drove them to look for safe alternatives to Treasury bills. Read more...
John Hussman: Overadaptation and Market Drawdowns The latest from John Hussman
The speculative premise here, as well as I can discern, seems to be that low short-term interest rates are “good” for the financial markets and that, in the absence of a material increase in interest rates by the Federal Reserve, speculative assets such as stocks, corporate credit and even junk debt will be naturally driven higher because they represent a desirable alternative to low-yielding, default-free liquidity. Read more...
John Hussman: Choose Your Weapon The latest view from John Hussman
Prevailing market conditions continue to hold the expected stock market return/risk profile in the most negative classification we identify. Read more...
The Coming Fed-Induced Pension Bust – John Hussman The latest view from the guru
Last week, I observed that, based on the most reliable measures we identify (those having the strongest correlation with actual subsequent 10- to 12-year investment returns across history as well as in recent cycles), “the expected return on a traditional portfolio mix is actually lower at present than at any point in history except the 1929 and 1937 market peaks. QE has effectively front loaded realized past returns while destroying the future return prospects of conventional portfolios, at least as measured from current valuations. As a result, the coming years are likely to see a major pension crisis across both corporations and municipalities because the illusory front loading of returns has encouraged profound underfunding.” Read more...
John Hussman Sells Broadcom, Cognizant Guru's largest sales during the 1st quarter
John 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. 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. These were the most heavily weighted sales during the first quarter. Read more...
» More John Hussman Articles

Commentaries and Stories

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John Hussman: Imagine The latest from John Hussman John Hussman - John Hussman: Imagine
Imagine the collapse of an extended speculative tech bubble, resulting in a broad economic recession. Imagine if the Federal Reserve had persistently slashed short-term interest rates during the downturn, to no avail, leaving rates at just 1% by the time the Standard & Poor's 500 had lost half of its value and the Nasdaq 100 collapsed by 83%. Imagine that the Fed kept rates suppressed, in the initially well-meaning hope of encouraging lending, growth and employment. Imagine that the depressed level of interest rates made investors feel starved for yield and drove them to look for safe alternatives to Treasury bills. More...

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Like Water Out of a Sponge - John Hussman The latest from market strategist John Hussman John Hussman - Like Water Out Of A Sponge - John Hussman
Last week, the 10-year Treasury yield dropped to just 1.6%. Technician Walter Murphy noted that his index of global 10-year yields also plunged to an all-time low. The overall structure of global bond yields is undoubtedly the outcome of years of aggressive monetary easing, though the break to fresh lows among European bank stocks may convey some additional information content. Of course, the compression of prospective investment returns isn’t limited to bonds. On the basis of the valuation measures best correlated withactual subsequent S&P 500 total returns across history, prospective 10-12 year S&P 500 nominal total returns have declined to just 0-2% by our estimates, with negative real expected returns on both horizons. More...

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John Hussman: Overadaptation and Market Drawdowns The latest from John Hussman John Hussman - John Hussman: Overadaptation And Market Drawdowns
The speculative premise here, as well as I can discern, seems to be that low short-term interest rates are “good” for the financial markets and that, in the absence of a material increase in interest rates by the Federal Reserve, speculative assets such as stocks, corporate credit and even junk debt will be naturally driven higher because they represent a desirable alternative to low-yielding, default-free liquidity. More...

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John Hussman: Choose Your Weapon The latest view from John Hussman John Hussman - John Hussman: Choose Your Weapon
Prevailing market conditions continue to hold the expected stock market return/risk profile in the most negative classification we identify. More...

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The Coming Fed-Induced Pension Bust – John Hussman The latest view from the guru John Hussman - The Coming Fed-Induced Pension Bust – John Hussman
Last week, I observed that, based on the most reliable measures we identify (those having the strongest correlation with actual subsequent 10- to 12-year investment returns across history as well as in recent cycles), “the expected return on a traditional portfolio mix is actually lower at present than at any point in history except the 1929 and 1937 market peaks. QE has effectively front loaded realized past returns while destroying the future return prospects of conventional portfolios, at least as measured from current valuations. As a result, the coming years are likely to see a major pension crisis across both corporations and municipalities because the illusory front loading of returns has encouraged profound underfunding.” More...

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Blowing Bubbles: QE and the Iron Laws – John Hussman The latest from John Hussman John Hussman - Blowing Bubbles: QE And The Iron Laws – John Hussman
Look across the room you’re in, and imagine there’s a $100 bill taped in the far upper corner, where the walls and ceiling meet. Imagine you’re handing over some amount of money today in return for a claim on that $100 bill 12 years from now. More...

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John Hussman Sells Broadcom, Cognizant Guru's largest sales during the 1st quarter John Hussman,Andreas Halvorsen,Eric Mindich,PRIMEC - John Hussman Sells Broadcom, Cognizant
John 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. 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. These were the most heavily weighted sales during the first quarter. More...

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Latent Risks and Critical Points – John Hussman The latest view from John Hussman John Hussman - Latent Risks And Critical Points – John Hussman
The Standard & Poor's 500 Index remains just 3.5% below its May 2015 peak yet is also at the same level it set in November 2014, 18 months ago. I continue to view market action as tracing out the arc of a major top formation, completing the third speculative financial bubble in 16 years. Downside risk remains significant, and even our short-term view has shifted back from neutral to hard-negative. Given that the behavior of single indices can be “noisy,” the following chart shows the average behavior of major global equity indices, including the U.S., European, British, Hong Kong and Japanese stock markets. This may provide a broader view of equity market pressures here. The respective level of each index on Dec. 31, 2014 is scaled to 1.0. More...

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John Hussman: 'Justified Consequences' The latest from John Hussman John Hussman - John Hussman: 'Justified Consequences'
Market conditions continue to be characterized by the likelihood of extremely poor long-term and full-cycle outcomes, with expected 10- to 12-year estimated Standard & Poor's 500 nominal total returns in the 0% to 2% range, negative expected real returns on both horizons and the continued likelihood of a 40% to 55% interim market loss over the completion of the current cycle; a decline that would represent only a typical run-of-the-mill cycle completion, based on valuation measures most tightly related with actual subsequent market returns across history. More...

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John Hussman: Lessons From the Iron Law of Equilibrium The latest from John Hussman John Hussman - John Hussman: Lessons From The Iron Law Of Equilibrium
Last week, the spread between bullish and bearish sentiment widened substantially, pushing market conditions to what I’ve often described as an “overvalued, overbought, overbullish” syndrome. More...

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John Hussman: Permanently High Plateaus Have Poor Precedents Hussman examines current valuations John Hussman - John Hussman: Permanently High Plateaus Have Poor Precedents
“Stock prices have reached what looks like a permanently high plateau.” More...

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John Hussman: Rounding the Bubble's Edge Guru encourages 'historically informed perspective' when investing John Hussman - John Hussman: Rounding The Bubble's Edge
The single most important quality that investors can have, at present, is the ability to maintain an historically informed perspective amid countless voices chanting, “This time is different,” and arguing that long-term investment returns have no relationship to the price that one pays. More...

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John Hussman: Fire Suppression Fed intervention fosters illusion that financial markets are under tight control John Hussman - John Hussman: Fire Suppression
In 1988, Yellowstone National Park went up in flames. In the worst catastrophe in the history of U.S. National Parks, nearly 800,000 acres of forest and surrounding areas were scarred by the uncontrollable blaze. The root cause of the inferno, as Mark Spitznagel recounts in his book The Dao of Capital, was fire suppression: More...

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John Hussman: Run of the Mill Outcomes Vs. Worst-Case Scenario Guru sees dismal future returns for stocks John Hussman - John Hussman: Run Of The Mill Outcomes Vs. Worst-Case Scenario
With the Standard & Poor's 500 Index at the same level it set in early November 2014, and the broad NYSE Composite Index unchanged since October 2013, the stock market continues to trace out a massive arc that is likely to be recognized, in hindsight, as the top formation of the third financial bubble in 16 years. More...

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John Hussman: Extinction Burst Hussman thinks the stock market is obscenely overvalued John Hussman - John Hussman: Extinction Burst
From a long-term investment standpoint, the stock market remains obscenely overvalued, with the most historically reliable measures we identify presently consistent with zero 10- to 12-year Standard & Poor's 500 nominal total returns and negative expected real returns on both horizons. More...

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John Hussman Sells Infosys, Cisco, Aetna A look at the guru's largest divestitures during the 4th quarter John Hussman - John Hussman Sells Infosys, Cisco, Aetna
John Hussman (Trades, Portfolio) 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. The following were his largest sales during the fourth quarter. More...

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Bearishness Is Strictly for Informed Optimists The latest from John Hussman John Hussman - Bearishness Is Strictly For Informed Optimists
From a long-term perspective, we believe that investors have a strong opportunity here to reduce equity risk near the peak of a market cycle that has reached the second-greatest overvaluation extreme in U.S. history (second only to the 2000 peak). More...

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Sands Capital Boosts Stake in Edwards Lifesciences Sands Capital buys nearly 9.6 million shares in 4th quarter Frank Sands,John Hussman,Vanguard Health Care Fund - Sands Capital Boosts Stake In Edwards Lifesciences
Frank Sands' Sands Capital Management boosted its stake in Edwards Lifesciences (NYSE:EW) in the fourth quarter by adding 9,598,997 shares. More...

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A Continued Undertone of Risk Aversion The latest from John Hussman John Hussman - A Continued Undertone Of Risk Aversion
Last week, the most historically reliable equity valuation measures we identify (having correlations of over 90% with actual subsequent 10- to 12-year Standard & Poor's 500 total returns) advanced to more than double their reliable historical norms. More...

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Home Depot Looks Appealing After 17% Dividend Hike A blue chip that saw a strong 4th quarter growth in sales plus a dividend hike Jim Simons,John Hussman,John Burbank,Jeremy Granth - Home Depot Looks Appealing After 17% Dividend Hike
Home Depot Inc (NYSE:HD) has raised its quarterly dividend to 69 cents per share or $2.76 on an annual basis from its previous 59 cents per share or $2.36 per year. More...

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