Aperture Investors
Peter Kraus is the CEO of Aperture Investors, which delivered atypical results last year.
Kraus breaks down why he doesn t expect that level of outperformance from his team in 2021.
He also warns of a 10%-15% correction ahead and shares his thoughts on GameStop, SPACs, and bitcoin.
Peter Kraus was the co-head of Goldman Sachs investment management division for over two decades and the CEO of AllianceBernstein for more than eight years, but he s seeing some atypical performance results for the first time.
All five strategies offered by his boutique asset manager Aperture Investors, which Kraus set up in September 2018, outperformed their respective benchmarks. The $396.1 million Aperture Discover Equity fund, a small-cap fund run by Brad McGill, beat 99% of its category peers to deliver a 58.9% return last year, according to Morningstar data.
This speculation could have significant knock-on effects. These are all what I would describe as typical signs of excess and definitely things that make us take a cautious view on the overall market, Russell said. What s difficult to really put across is the fact that this excess is pretty much contained into large, but specific, pockets of the market.
Though the overall index could fall, it doesn t necessarily mean everything will go down in value, Russell said.
Russell is still investing in traditional businesses, such as retail, energy and financial companies, while avoiding momentum stocks, the FAANGs, as well as any business where investors are being asked to pay high multiples for future profits.
Warren Buffett s preferred market gauge hit a record high of 195%, signaling a crash could be coming. The "Buffett indicator" compares the value of the stock
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In an exclusive interview with Insider, Ray Dalio said he expects a period of weak returns in stocks.
He said low interest rates are fueling a bubble that will eventually burst.
Major Wall Street banks are bullish on the direction of equity markets, however.
With the Federal Reserve pinning down interest rates, return-hungry investors have turned to stocks for the income bonds would have provided in a different era. But with all of this appreciation in stocks, little upside potential remains, according to legendary investor Ray Dalio.
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February 10, 2021 4:49 AM newsfeedback@fool.com (Maurie Backman)
Posted:
Updated:
February 11, 2021 10:55 AM
If you’ve been keeping tabs on the stock market, it’s hard to overlook the fact that we’re in a bubble. Stocks are generally overvalued right now, which means eventually, we’re apt to see that bubble burst.
But that may not happen for a bit of time, so it’s important to know what to do while we’re still in bubble territory. Here are a few key moves worth making right now.
Image source: Getty Images.
1. Keep buying stocks
That’s right you don’t have to let inflated stock prices keep you from buying. What you do need to do, however, is choose the right companies specifically, those with the potential to hold steady once that bubble pops. Focus on companies with a clear competitive edge and businesses that continue to innovate.