FYI: It’s tough to be a contrarian during the longest bull market in history. Ask Eric Cinnamond.
When Cinnamond was running the Aston/River Road Independent Value fund in 2016, he had more than 80% of assets in cash because he felt most stocks were overvalued. Financial publications took notice, with Barron’s asking that year “How Much Cash Is Too Much?” and a Wall Street Journal article in 2014 noting, in Cinnamond’s own words, that his “Stock Fund’s Cash Stake Looks ‘Stupid.’ ”
With the market’s run-up continuing, he got so frustrated he eventually asked that the fund return its capital to shareholders and liquidate. It had more than $400 million in assets in its last financial report on April 30, 2016.
Now Cinnamond has launched his own fund—Palm Valley Capital (ticker: PVCMX)—and he’s still concerned that stocks are overvalued. With stocks priced for perfection, he thinks investors are largely ignoring a key risk today to their rosy outlook—inflation.
Regards,
Ted
https://www.barrons.com/articles/stealth-inflation-will-hurt-markets-says-one-contrarian-fund-manager-51563706801?mod=md_mf_newsM* Snapshot PVCMX:
https://www.morningstar.com/funds/xnas/pvcmx/quote
