The Late Stages Of A Bear Market – The Big Long

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The Late Stages Of A Bear Market – The Big Long

The Late Stages Of A Bear Market – The Big Long by Dave Iben, Kopernik Global Investors

The Big Short is a movie that is currently in theaters and is nominated for five Academy Awards, including best picture. Based on Michael Lewis’ well written book about the actions, travails, agony, and eventual triumphs of a group of eccentric, independent and contrarian-minded investors who bet on the “inconceivable”, yet, in reality, inevitable collapse of the mortgage market. In two hours and ten minutes, the picture does a decent job of portraying the pain that is inflicted upon investors who are too early. The collapse of the hugely overextended, and arguably corrupt, mortgage market took over three years to unfold. Once it did, Wall Street ignored it at first, and refused to reflect reality into the price of securities. It had to be excruciating for these maverick investors. As Howard Marks notes, “successful investing requires the ability to look wrong for a while.” He mentions David Swensen’s (of Yale) ‘terrific phrase’: “Uncomfortably idiosyncratic.”

Trident Fund LP July 2022 Performance Update