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Mario Joseph Gabelli is one smart stock picker. In many ways his research and style mimics the methods of Munger and Buffett. Here is a Link to a recent exchange he had on the 25iq website:
Although Gabelli just might be the more better known, and just might be wealthier, he is not the original MJG. Since I’m 8 years older, if seniority rules dominate, I am.
More seriously, Gabelli demonstrated superior stock picking talents over a decade ago. His mutual funds generated positive Alphas in those decade old days. More recently, that apparent advantage has eroded.
Like so many other fund managers, that Alpha erosion might be caused by the changing investment environment. A decade ago, Gabelli and his cohorts were investing against opponents like you and me. Today, they are challenging each other since north of 70% of all trades are now between institutional investors. These talented and resourceful investment teams neutralize one another.
Is Gabelli worth his paycheck? My personal answer is “No”. Just like it would be if the question was asked about Big League ballplayers. But the marketplace has given another answer. So, I’ll just take a deep breath and move ahead.
Huh? Where you do get that? Did you not read it? Looks to be copy/paste from various Gab reports and interviews.
Interesting to contemplate the end of stockpicking due to 'changing investment environment'.
>> Gabelli demonstrated superior stock picking talents over a decade ago. His mutual funds generated positive Alphas in those decade old days. More recently, that apparent advantage has eroded.
Looks more mixed than that to me: If you go back exactly a decade with GABEX, he matches SP500 and beats his LB category, with lower risk, and also beats, say, TWEIX, which everyone writes about and includes in their value/risk list. He loses to PRBLX and Yackts. If you go back 3y and 5y he loses to Ahlsten and SP500 and category but beats Yackts and TWEIX. Of course one really wanted to be in RPV and/or RPG during that time more than anything.
As for his worth and paycheck, he pays himself so much it seems hard to justify anything, when you can always go with Ahlsten and some others. (I've cast my lot largely w DSENX now.)
I do read every reference that I post on MFO. You are absolutely correct that I should not have written "recent exchange". Instead, I should have reported it as a "recent 25iq release". Sorry for the error.
I owned the Gabelli Small Cap Growth fund for a long period. About 5 years ago, I concluded that he lost some of his market mojo and mostly replaced it with an Index product. I surely agree with you that market interactions are "mixed" and full explanations are complex and multidimensional.
Over time, MJG has not lost his market smarts, and I believe he remains loyal to his methods and styles. The competition has improved. The pitching staff that he is batting against is both stronger and has a deeper bench.
Comments
Regards,
Ted
https://www.google.com/#q=Mario+Gabelli:+Stock-Picking+Treasure+or+Relic?+wsj
Mario Joseph Gabelli is one smart stock picker. In many ways his research and style mimics the methods of Munger and Buffett. Here is a Link to a recent exchange he had on the 25iq website:
http://25iq.com/2015/06/13/a-dozen-things-ive-learned-from-mario-gabelli-about-investing-and-business-2/
Although Gabelli just might be the more better known, and just might be wealthier, he is not the original MJG. Since I’m 8 years older, if seniority rules dominate, I am.
More seriously, Gabelli demonstrated superior stock picking talents over a decade ago. His mutual funds generated positive Alphas in those decade old days. More recently, that apparent advantage has eroded.
Like so many other fund managers, that Alpha erosion might be caused by the changing investment environment. A decade ago, Gabelli and his cohorts were investing against opponents like you and me. Today, they are challenging each other since north of 70% of all trades are now between institutional investors. These talented and resourceful investment teams neutralize one another.
Is Gabelli worth his paycheck? My personal answer is “No”. Just like it would be if the question was asked about Big League ballplayers. But the marketplace has given another answer. So, I’ll just take a deep breath and move ahead.
Best Wishes.
Huh? Where you do get that? Did you not read it? Looks to be copy/paste from various Gab reports and interviews.
Interesting to contemplate the end of stockpicking due to 'changing investment environment'.
>> Gabelli demonstrated superior stock picking talents over a decade ago. His mutual funds generated positive Alphas in those decade old days. More recently, that apparent advantage has eroded.
Looks more mixed than that to me:
If you go back exactly a decade with GABEX, he matches SP500 and beats his LB category, with lower risk, and also beats, say, TWEIX, which everyone writes about and includes in their value/risk list. He loses to PRBLX and Yackts.
If you go back 3y and 5y he loses to Ahlsten and SP500 and category but beats Yackts and TWEIX.
Of course one really wanted to be in RPV and/or RPG during that time more than anything.
As for his worth and paycheck, he pays himself so much it seems hard to justify anything, when you can always go with Ahlsten and some others. (I've cast my lot largely w DSENX now.)
I do read every reference that I post on MFO. You are absolutely correct that I should not have written "recent exchange". Instead, I should have reported it as a "recent 25iq release". Sorry for the error.
I owned the Gabelli Small Cap Growth fund for a long period. About 5 years ago, I concluded that he lost some of his market mojo and mostly replaced it with an Index product. I surely agree with you that market interactions are "mixed" and full explanations are complex and multidimensional.
Over time, MJG has not lost his market smarts, and I believe he remains loyal to his methods and styles. The competition has improved. The pitching staff that he is batting against is both stronger and has a deeper bench.
Thanks for your comments.
Best Wishes.
There are note at the bottom that give all the Gabelli sources over time.