We recognize that investing in equities is a flawed, imperfect science at best. We start out with a very simple premise; we don’t like to invest in companies that management is not willing to invest significant amounts of their own money in. There have been many academic studies including our own which support that this is a good first screen.
The efficient market hypothesis assumes that all information about a company is already reflected in its price and therefore investors are best served by investing in low cost index funds. Eugene Fama, of the University of Chicago, defined its essence: that the price of a financial asset reflects all available information that is relevant to its value. Accordingly, research is basically worthless and no one beats the market for long periods of time. The efficient market hypothesis theory has had a great impact on investor beliefs ushering in the era of index funds and their sponsors like Vanguard. I agree that much information is already reflected in the price. But there is a possibility that some information is not public and hence not reflected in the price. That is the essence of “the insider fund”, Sax Angle Partners.
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*All Investments involve risk, including the loss of principal. This is neither a solicitation or offer to sell any security. Past performance is not necessarily indicative of future results. An offer can only be made through the Fund’s Private Offering Documents.