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Performance through 5/2/2014

Analyses since inception (12/20/2001) 53

Batting average 792

Analyses mean excess return (relative to the S&P 500) 10%

Analyses median excess return (relative to the S&P 500) 12%

Background

Chris Hackett founded Greenwich Investment Research in 2001 with one goal: to produce the best value-based research available. Prior to this, Chris worked as a research associate for Professor Thomas Eisenmann at Harvard Business School, co-authoring cases on Qwest Communications and Net Market Makers. Earlier in his career, Chris worked for Access Industries, an investment company which acquired Russian businesses; return on investment was extraordinary. Access became the second largest aluminum producer in Russia and the sixth largest in the world. Chris earned a B.A. from Albion College in 1982 and an M.B.A. from Harvard Business School in 1990.

Sample Analyses

  1.  Published on 8/10/2008, our SPDR Gold Trust (GLD) analysis combined three elements:
  • A data-driven explanation of the extraordinary macro events which reached criticality during the second half of 2008.
  • An easily executable, liquid investment recommendation.
  • A framework for understanding subsequent macro challenges, i.e., the extraordinary leverage in the U.S. economy.

Hackett’s Special Situation Report: SPDR Gold Trust

The following table summarizes how an investment in GLD performed from report publication (8/10/2008) until we recommended exiting the position (10/22/2010):

Great Value Resource

  1.  Clearwater Paper Corp. is a straightforward special situation: value with a catalyst buried in the footnotes of the company’s financial statements. The report is necessarily brief: we wrote the report during early July 2009 with the suspicion that when the company filed its second quarter 10-Q, the value would be prominently displayed on its balance sheet and income statement (this turned-outto be the case).Hackett’s Special Situation Report: Clearwater Paper Corp.
  2.  Published on 9/12/2011, Nakanishi, Inc. is a Joel Greenblatt special, i.e., a high return business available at a low multiple (8x trailing earnings, 2.6x trailing EBITDA). It was our third Japanese recommendation (the prior two were Japanese Yen 3/19/2007 and Circle K Sunkus 4/40/2011).

Absolute Values: Nakanishi, Inc.

Subsequently, we produced analyses on two more Japanese bargains: Fuji Machine Mfg. Co. Ltd. (6134 on the Nagoya Stock Exchange) and NGK Spark Plug Co. LTD. (5334 on the Tokyo Stock Exchange).

  1.  On 3/5/2012 we published a Thoughtful Skeptic coveringAVX Corp. (AVX, $2.3 billion market capitalization) and Asahi Diamond Industrial Co. Ltd. (6140 on the Tokyo Stock Exchange, $765 million market capitalization). ThoughAVX screened cheap, we disqualified it on governance issues. In the case of Asahi Diamond, we had a great deal of difficulty getting management to answer our questions. We eventually did get all of our questions answered, but it required so much effort that we passed on the investment.The Thoughtful Skeptic: AVX, Asahi
  2.  Published on 7/14/2011, our Citi Trends, Inc. analysis and subsequent investment was a mistake. After publication, we interviewed the retired merchant who built the business and realized the business was much less interesting than we had originally thought. We shared this information with clients in our 2011 year-end letter and notified clients in our 5/15/2012 Thoughtful Skepticthat we planned to sell our CTRN shares.

Absolute Values: Citi Trends, Inc.

See Full PDF here: GIR-Performance

By: hacketts.com