Ken Fisher is Humbled

By on November 29, 2008

The N. Y. Post reports that Ken Fisher, big money manager and chagrined bull, has lost $13 billion in assets under management to currently oversee a mere $30 billion. This actually doesn’t seem too bad since the market’s drop would account for most of that. Fisher has made a lot of bonehead calls over the past year, including a bullish call on housing stocks in February before they completely imploded. Despite his recent failings, Fisher’s long term track record is actually above average when compared to other “gurus.”

Source:

http://www.nypost.com/seven/11282008/business/fisher_flounders_141277.htm
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2 Comments

  1. Anonymous

    December 6, 2008 at 6:46 pm

    The reporting in the Post Article is a bit weak. “Stellar results”. How about some facts:

    YTD 2008 Fisher is lagging his benchmark, the MSCI World Index, by almost 2%. YTD he is down roughly 45-50%. That equates to a loss of approximately $23 Billion

    2006: Fisher lagged his benchmark by 4.4%
    2005: Fisher lagged his benchmark by 2.0%
    2004: Fisher lagged his benchmark by 6.4%
    2003: Fisher beat his benchmark by 0.7%
    2002: Fisher lagged his benchmark by 4.2%

    Even with a slight beat in 2007, how do these facts reconcile with “stellar”?

    Fact: When Fisher glibly talks about being a legend and still being wrong 30% of the time, he forgets a couple of salient points. 1) according to independent analysis, he hasn’t been correct on a market call in almost two years; 2) for the 70-30 point in the article to have any meaning, one has to apply the amount of dollars at risk when the correct and the incorrect decisions were made. In Fisher’s history, his correct calls were made when he managed only several million to about a billion dollars. His poor and horrible “30%” decisions were made when he was managing 10-40+ billion dollars. If you do the math, he has, net, had stellar BAD results.

    Opinion: Quite a legend, perhaps in his mind.

    Opinion: this quasi-legal fraud must be put out of business.

  2. stocksystm

    December 6, 2008 at 7:04 pm

    Thanks for the facts and the opinions, which are good ones.

    Other “legends,” including Bill Miller, happen to perform well with relatively small amounts of money (mainly through luck), but eventually lose huge after they become popular with the investing masses.

    The net effect, as you point out, is a gigantic negative.

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