John Hussman

John Hussman

Last Update: 02-01-2016

Number of Stocks: 203
Number of New Stocks: 52

Total Value: $704 Mil
Q/Q Turnover: 38%

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: Lessons From the Iron Law of Equilibrium The latest from John Hussman
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. Read more...
John Hussman: Rounding the Bubble's Edge Guru encourages 'historically informed perspective' when investing
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. Read more...
John Hussman: Run of the Mill Outcomes Vs. Worst-Case Scenario Guru sees dismal future returns for stocks
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. Read more...
John Hussman: Extinction Burst Hussman thinks the stock market is obscenely overvalued
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. Read more...
John Hussman Sells Infosys, Cisco, Aetna A look at the guru's largest divestitures during the 4th quarter
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. Read more...
» More John Hussman Articles

Commentaries and Stories

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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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John Hussman: Speculative Half Cycles Tend to Be Completed Badly The latest from John Hussman John Hussman - John Hussman: Speculative Half Cycles Tend To Be Completed Badly
Last week, the Cleveland Fed Financial Stress Index climbed to 1.92 (measured as standard deviations from the mean); a level associated with severe financial distress, and previously observed only during the 2011 market retreat, the 2008-2009 financial crisis, and the Asian crisis of 1998. This spike has been driven by widening credit spreads and other measures of systemic market-perceived risk. In 1998, a similar spike shortly preceded the collapse of Long Term Capital Management. In 2008, the spike shortly preceded the failure of Bear Stearns and Lehman Brothers. In 2011, the spike was followed by the failure and restructuring of Greek government debt. More...

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Warning With a Capital 'W' The latest from John Hussman John Hussman - Warning With A Capital 'W'
We continue to classify the prospective equity market return/risk profile within the most negative climate we identify. More...

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When Stocks Crash And Easy Money Doesn't Help The latest from John Hussman John Hussman - When Stocks Crash And Easy Money Doesn't Help
Despite short-term interest rates being only a whisper above zero, we increasingly hear assertions that “financial conditions have tightened.” More...

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John Hussman Buys 350,000 Shares in GE Hussman invests in company with strong CEO, but declining margins John Hussman - John Hussman Buys 350,000 Shares In GE
Guru John Hussman (Trades, Portfolio) received a Ph.D. in economics from Stanford University in 1992, a master's degree in education and social policy in 1985, as well as bachelor’s degree in economics from Northwestern university. Hussman has a simple checklist of mental models that he uses when making investment decisions.  More...

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Hussman Makes More New Buys Than in Any Quarter Since 2011 Stake in General Electric is guru's most noteworthy acquisition John Hussman - Hussman Makes More New Buys Than In Any Quarter Since 2011
John Hussman (Trades, Portfolio), president and principal shareholder of Hussman Strategic Advisors, acquired 52 new stakes in the fourth quarter. That was the greatest number of new buys for Hussman in a single quarter since the third quarter of 2011. More...

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The Gas Pedal Is Useless When the Spark Plugs Are Gone The lastest from John Hussman John Hussman - The Gas Pedal Is Useless When The Spark Plugs Are Gone
Among the central lessons that investors should understand, before the completion of the current market cycle teaches it again, is this: the interpretation of nearly every piece of information – valuations, economic data, central bank action – is conditional on the status of market internals. While long-term investment returns are tightly correlated with good measures of valuation (e.g., MarketCap/GVA), investment returns over shorter portions of the market cycle are primarily driven by the willingness or aversion of investors to accept risk. Historically, the most reliable measure of investor risk-preferences is the behavior of market internals across a broad range of individual stocks, industries, sectors and security types, including debt securities of varying creditworthiness. More...

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Wicked Skew: When Extreme Losses Are Standard Outcomes The latest view from John Hussman John Hussman - Wicked Skew: When Extreme Losses Are Standard Outcomes
Following the market decline of recent weeks, historically reliable valuation measures remain roughly 80% to 90% above the norms that have been reached or breached by the completion of every market cycle in history, including recent cycles as well as market cycles prior to the 1960s, when bond yields were similarly low. Treasury yields were below 3% for about 30% of the past century, but the most historically reliable equity valuation measures have been higher than present levels in only about 2% of history, primarily around the 2000 market peak. More...

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An Imminent Likelihood of Recession The latest from John Hussman John Hussman - An Imminent Likelihood Of Recession
Since October, the economic evidence has shifted from supporting a growing risk of recession, to a guarded expectation of recession, to the present conclusion that a U.S. recession is not only a risk but an imminent likelihood, awaiting confirmation that typically only emerges after a recession is actually in progress. More...

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Complex Systems, Feedback Loops and the Bubble-Crash Cycle The latest from strategist John Hussman John Hussman - Complex Systems, Feedback Loops And The Bubble-Crash Cycle
Our expectations for a global economic downturn, including a U.S. recession, have hardened considerably in the past few weeks, with a continued expectation of a retreat in equity prices on the order of 40% to 55% over the completion of the current cycle as a base case. More...

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