HIE (Miller/Howard Highome Equity Fund) Predictability Rank

View and export this data going back to . Start your Free Trial

What is Miller/Howard Highome Equity Fund Predictability Rank?

Not Rated

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Miller/Howard Highome Equity Fund Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	1.1%	3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-Star (non-predictable)	Average among all
% Out of All 2403 Stocks	3.3%	2.9%	3.7%	3.3%	3.3%	3.7%	3.3%	76.3%	100%
% that are in Loss (10y)	3%	10%	8%	9%	11%	18%	16%	45%	37%
Average Gain (10y)	364.6%	330.9%	278.0%	235.1%	243.5%	227.8%	154.8%	100.0%	138.1%
Median Gain (10y)	238.5%	193.5%	171.0%	159.0%	132.5%	113.5%	87.0%	13.0%	39.0%
Maximum Gainer	2228.0%	2547.0%	2452.0%	2852.0%	2432.0%	1892.0%	1807.0%	11483.0%	11483.0%
Maximum Loser	-82.0%	-53.0%	-67.0%	-100.0%	-83.0%	-100.0%	-78.0%	-100.0%	-100.0%
Annualized Average Gain	15.4%	14.6%	13.2%	12.0%	12.2%	11.7%	9.1%	6.7%	8.4%
Annualized Median Gain	12.1%	10.6%	9.8%	9.3%	8.2%	7.3%	6.0%	1.1%	3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Miller/Howard Highome Equity Fund Predictability Rank Related Terms

Thank you for viewing the detailed overview of Miller/Howard Highome Equity Fund's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Miller/Howard Highome Equity Fund Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Miller/Howard High Income Equity Fund (NYSE:HIE) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

45 Pine Grove Avenue, Suite 301, Kingston, NY, USA, 12401

Website

https://www.hiefund.com

Miller/Howard High Income Equity Fund is a closed-end, diversified management investment company. The fund's primary investment objective is to seek a high level of current income with a secondary objective of capital appreciation. It invests under normal market conditions, a majority of its total assets in dividend or distribution paying equity securities of U.S. companies and non-U.S. companies traded on U.S. exchanges. Its portfolio of investments consists of securities of different sectors such as Natural Gas Transmission, Real Estate Investment Trusts, Petroleum Refining, Oil and Gas Extraction, Electric Services and others.

Executives

Saba Capital Management, L.p.	10 percent owner	405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174
Boaz Weinstein	10 percent owner	405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174
Paul Charles Kazarian	director	C/O SABA CAPITAL MANAGEMENT, L.P., 405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174
James E Hillman	director	10 DIXON AVENUE, WOODSTOCK NY 12498
Eva M Horowitz	officer: Secretary	45 PINE GROVE AVENUE, SUITE 301, KINGSTON NY 12401
Sacco Mayra	director	10 DIXON AVE, WOODSTOCK NY 12498
Catherine Mari Johnston	director, officer: President	10 DIXON AVE, WOODSTOCK NY 12498
Dana Troxell	officer: President	C/O MILLER/HOWARD HIGH EQUITY INCOME FND, P.O. BOX 549, WOODSTOCK NY 12498
Lowell Miller	officer: Chief Executive Officer	PO BOX 549, WOODSTOCK NY 12498
Roger Conrad	director	3516 HALCYON DRIVE, ALEXANDRIA VA 22305
Charles I Leone	director	C/O US WIRELESS DATA INC, 805 THIRD AVENUE, NEW YORK NY 10022
Paul Brook	officer: Chief Compliance Officer	MILLER/HOWARD HIGH EQUITY INCOME FUND, P.O. BOX 549, WOODSTOCK NY 12498
Helen Hamada	officer: Chief Financial Officer	PO BOX 549, WOODSTOCK NY 12498
Annemarie Gilly	officer: Chief Operating Officer	PO BOX 549, WOODSTOCK NY 12498
Leslie John E Iii	officer: Vice President	MILLER/HOWARD HIGH EQUITY INCOME FUND, P.O. BOX 549, WOODSTOCK NY 12498