Bares The Small-Cap Advantage

How Top Endowments and Foundations Turn Small Stocks into Big Returns
1. Auflage 2016
ISBN: 978-0-470-93968-0
Verlag: John Wiley & Sons
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 208 Seiten, E-Book

Reihe: Wiley Finance Editions

A world-renowned money manager shares winning strategies forsmall-stock investing
Since forming Bares Capital Management, Inc. in 2000, BrianBares has shown that above average returns can be generated throughthe careful selection of small company common stocks. Additionally,he's shown how concentrating capital in a handful of ideas improvesthe potential for outperformance by increasing the depth ofknowledge of each position and allowing each security to have amore meaningful impact on the portfolio. In The Small-CapAdvantage: How Top Endowments and Foundations Turn Small StocksInto Big Returns, Bares describes how endowment-model investorsand aspiring managers can gain meaningful exposure to small stockswhile sidestepping many of the obstacles that have historicallyprevented institutional investment in the asset class. The bookalso
* Details the historical outperformance of small-cap stocks
* Contrasts the various strategies employed by managers in thespace
* Explains how aspiring managers can structure a firm to boostperformance and attract institutional capital
* Describes how endowment-model institutions can evaluate andengage outside managers for their small-cap allocations
* Summarizes important topics such as liquidity and the researchprocess
Bigger is not better. The Small-Cap Advantage revealsthat small stocks have historically performed better than largeones, and that lack of competition in small-cap stocks providesdiligent managers with a singular opportunity to outperform.

Autoren/Hrsg.

Bares, Brian

Inhaltsverzeichnis

Introduction.
Acknowledgments.
Chapter 1 The Small-Cap Advantage.
Two Sources of Outperformance.
Small-Cap Definitions.
The Outperformance of Small-Cap Stocks.
Outperformance within the Small-Cap Space.
Chapter Summary.
Chapter 2 Small-Cap Disadvantages.
Research.
Trading.
The Small-Cap Graveyard and Reverse Survivorship Bias.
Capping Assets.
Chapter Summary.
Chapter 3 Small-Cap Investment Philosophy andProcess.
Institutional Approach.
Passive and Enhanced Indexing in Small-Cap Stocks.
Active Management in Small-Cap Stocks.
Chapter Summary.
Chapter 4 Small-Cap Manager Organization.
Creating Value for the Manager.
Launching a Small-Cap Firm.
Investment Team.
Chapter Summary.
Chapter 5 The Fundraising Process.
General Marketing Strategy.
Institutional Clients.
Foundations and Endowments.
Consulting Firms.
Pension Plans.
High Net-Worth Individuals.
Wrap Fee and other Sub-Advisory Relationships.
Databases.
Third-Party Marketers.
The Chicken-and-Egg Problem.
Chapter Summary.
Chapter 6 Fees, Agency Issues, and Other PerformanceDrags.
Common Performance Drags.
Frictional Costs in Small Caps.
Institution-Manager Agency Issues.
Agency Issues in Trading.
Benchmark Tyranny.
Commingled and Separate Accounts.
Chapter Summary.
Chapter 7 Small-Cap Managers and the Endowment Model.
The Endowment-Model Approach to Small Caps.
Finding an Edge.
Funding Smaller Managers.
Funding Emerging Managers.
Finding Emerging Managers.
Chapter Summary.
Chapter 8 Evaluating Small-Cap Managers.
Institutional Due Diligence Teams.
Assessing Manager Risk.
Assessing Investment Philosophy.
Analyzing a Manager's Process.
Evaluating Firm Principals.
Assessing Manager Operations.
Contributions and Withdrawals.
Chapter Summary.
Final Thoughts.
Notes.
About the Author.
Index.

Über Autor(innen)

Brian T. Bares, CFA, is a research analyst with Bares CapitalManagement, Inc. He founded the firm in 2000 with the belief thatconcentrated portfolios of inefficiently priced small companiescould lead to high relative compounding. His firm manages theinstitutional portfolios of small-cap and micro-cap common stocksin long-only, replicated separate accounts. Mr. Bares began hiscareer by working his way up from the bottom. From compliance andoperations, to trading and portfolio management, he garneredexperience in nearly all aspects of running a boutique small-capmanagement company before starting his own company. He graduatedfrom the University of Nebraska with a degree in mathematics. Hisinvestment philosophy and strategy have been profiled in ValueInvestor Insight and the Manual of Ideas: Portfolio Manager'sReview. Mr. Bares holds the Chartered Financial Analyst designationand is a member of the CFA Society of Austin. He resides in Austin,Texas, with his wife and two sons.