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

When Stocks Crash And Easy Money Doesn't Help The latest from John Hussman
Despite short-term interest rates being only a whisper above zero, we increasingly hear assertions that “financial conditions have tightened.” Read more...
John Hussman Buys 350,000 Shares in GE Hussman invests in company with strong CEO, but declining margins
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.  Read more...
Hussman Makes More New Buys Than in Any Quarter Since 2011 Stake in General Electric is guru's most noteworthy acquisition
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. Read more...
The Gas Pedal Is Useless When the Spark Plugs Are Gone The lastest from John Hussman
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. Read more...
Wicked Skew: When Extreme Losses Are Standard Outcomes The latest view from John Hussman
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. Read more...
» More John Hussman Articles

Commentaries and Stories

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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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Will Stocks Have Negative Returns for 7 Years? Nearly every valuation metric is overheating; is another lost decade possible? John Hussman - Will Stocks Have Negative Returns For 7 Years?
While stocks have gyrated in recent months, U.S. equities have performed incredibly well since the 2008 to 2009 financial crisis. Since those lows, the S&P 500 has gone on a tear, exploding over 200% in just seven years. More...

LONG, SHORT, BEAR, BULL, SHILLER, PE, VALUATION, MARKET, SPY, SP, INDEX, US, EQUITIES, GMO, GRANTHAM, HUSSMAN


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The Stock Market Will Return Nothing According to Buffett Indicator: Market Valuations and Expected Returns Jan. 2016 Monthly market commentary from GuruFocus Howard Marks,John Hussman - The Stock Market Will Return Nothing According To Buffett Indicator: Market Valuations And Expected Returns Jan. 2016
The stock market indices didn’t do much themselves in 2015. Among S&P 500 companies, slightly more companies were down than up. Energy companies, miners were the worst performers in 2015. The best performers were the high fliers such as Netflix (NASDAQ:NFLX), which was up more than 134%, and Amazon (NASDAQ:AMZN), up 117%. More...

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The Next Big Short: The Third Crest of a Rolling Tsunami - John Hussman The latest Wall Street views from John Hussman John Hussman - The Next Big Short: The Third Crest Of A Rolling Tsunami - John Hussman
Along with every extreme episode of financial market speculation is a “story,” whether it’s one of technological change, financial innovation, demographic shift, or central bank support. Each story serves the same purpose, which is to encourage and even promise investors that risk is not really risk. As a result, typical levels of cyclical overvaluation aren’t enough to deter further speculation. At the peak of every speculative bubble, there are always those who have persistently embraced the story that gave the bubble its impetus in the first place. As a result, the recent past always belongs to them, if only temporarily. Still, the future inevitably belongs to somebody else. By the completion of the market cycle, no less than half (and often all) of the preceding speculative advance is typically wiped out. More...

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On the Completion of the Current Market Cycle and Beyond - John Hussman Equity market is in late stage of 3rd financial bubble in 15 years John Hussman - On The Completion Of The Current Market Cycle And Beyond - John Hussman
As we look forward to 2016, to following through on our investment discipline over the completion of the current market cycle and beyond, a few recent market comments will serve as a detailed review of our present market and economic outlook: More...

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Reversing the Speculative Effect of QE Overnight The latest from John Hussman John Hussman - Reversing The Speculative Effect Of QE Overnight
In recent quarters, I’ve been adamant that the immediate first step of the Federal Reserve in normalizing monetary policy should have been to reduce the size of its balance sheet. The Fed’s failure to prioritize that first step, in the apparent desire to maintain an aggrandized role in the U.S. financial markets, has significantly increased the risk of a collapse from the speculative extremes the Fed has created in recent years. Given the increasing risk aversion evident in market internals, we doubt that even a reversal of last week’s rate hike would materially reduce that prospect. More...

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Deja Vu: The Fed's Real 'Policy Error' Was to Encourage Years of Speculation The latest from guru John Hussman John Hussman - Deja Vu: The Fed's Real 'Policy Error' Was To Encourage Years Of Speculation
Over the past several years, yield-seeking investors, starved for any “pickup” in yield over Treasury securities, have piled into the junk debt and leveraged loan markets. Just as equity valuations have been driven to the second most extreme point in history (and the single most extreme point in history for the median stock, where valuations are well-beyond 2000 levels), risk premiums on speculative debt were compressed to razor-thin levels. By 2014, the spread between junk bond yields and Treasury yields had fallen to less than 2.4%. Since then, years of expected “risk premiums” have been erased by capital losses, and defaults haven’t even spiked yet (they do so with a lag). More...

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From Risk to Guarded Expectation of Recession John Hussman shares his insights John Hussman - From Risk To Guarded Expectation Of Recession
On the basis of valuation measures most closely correlated with actual subsequent 10- to 12-year Standard & Poor's 500 total returns in market cycles over more than a century, a ranking of the most overvalued extremes in U.S. history, in order of severity, includes: 2000, 2015, 1929, 2007, 1937, 1907, 1968, and 1972. More...

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Rarefied Air: Valuations and Subsequent Market Returns The latest from John Hussman John Hussman - Rarefied Air: Valuations And Subsequent Market Returns
The atmosphere is getting thin up here, and every ounce counts triple when you're climbing in rarefied air. While near-term market dynamics are more likely to be affected by Friday’s employment report than any other factor, our broad view remains that stocks are in the late-stage top formation of the second-most extreme episode of equity market overvaluation in U.S. history, second only to the 2000 peak and already beyond the 1929, 1937, 1972 and 2007 episodes, not to mention lesser extremes across history. More...

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Dispersion Dynamics - John Hussman The latest from the guru and manager of Hussman Funds John Hussman - Dispersion Dynamics - John Hussman
Two types of dispersion are increasingly apparent in market dynamics here. The first type of dispersion is between leading measures of economic activity and lagging ones. The second is dispersion in market internals, particularly observable in a continued narrowing of leadership to a handful of “winner-take-all” stocks, while broader measures of market action across individual stocks, industries, sectors, and credit spreads show persistent divergence that suggests increasing risk-aversion among investors. More...

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The Bubble Is Right in Front of Our Faces – John Hussman Guru discusses equity market John Hussman - The Bubble Is Right In Front Of Our Faces – John Hussman
Cutting immediately to the chase, the U.S. equity market is in a late-stage top formation of the third speculative bubble in 15 years. On the basis of measures best correlated with actual subsequent Standard & Poor's 500 total returns across history, equity valuations remain obscene. A loss in the S&P 500 in the range of 40% to 55% over the completion of this cycle seems likely – an outcome that would be wholly run of the mill, given present market conditions, and would not even bring reliable measures of valuation materially below their longer-term historical norms. More...

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Psychological Whiplash – John Hussman Latest economic news has convinced investors December interest rate hike is probable John Hussman - Psychological Whiplash – John Hussman
Investors have experienced a great deal of whiplash in recent months. After a rapid but relatively contained retreat in August and September, the stock market has rebounded to within 2% of its May record high. Only weeks ago, investors were concerned about economic deterioration. As of Friday, strength in nonfarm payrolls has suddenly convinced investors that a December rate hike by the Fed is all but certain. More...

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John Hussman Invests in Dick's Sporting Goods Guru parts with nearly three dozen stakes in third quarter John Hussman - John Hussman Invests In Dick's Sporting Goods
John Hussman (Trades, Portfolio), president and principal shareholder of Hussman Strategic Advisors, has something of an advantage over most of his fellow gurus. A former professor of economics and international finance, his academic research centered on market efficiency and information economics, knowledge that is useful when making investment decisions. More...

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The Last Gasp Saloon - John Hussman The latest commentary from the guru John Hussman - The Last Gasp Saloon - John Hussman
I’ve often emphasized that market peaks are not an event, but a process. One of the elements of that process, as I observed approaching the 2000 and 2007 peaks, and again during the extended range-bound period of recent quarters, is that deterioration in broad market internals — particularly following an extended period of overvalued, overbought, overbullish conditions — is a sign of increasing risk-aversion that typically precedes more extensive losses in the capitalization-weighted averages. More...

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User Comments

Returns
ReplyReturns - 1 year ago
John Hussman (Trades, Portfolio), I think, has a set of unique investment views.
Returns
ReplyReturns - 1 year ago
John Hussman (Trades, Portfolio) has a quite unique set of market-related and investment views, I think
Returns
ReplyReturns - 1 year 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 - 1 year 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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