Global Return August 2018 Commentary: Thinking Differently

Global Return August 2018 Commentary: Thinking Differently

Global Return Asset Management commentary for the month ended August 31, 2018; discussing Yahoo’s business model.

Dear Friends,

For the month of August, we generated a net return of 2.09%.1 We ended the month with 18% of assets in cash and had a net market exposure of 29%.

Corsair Took A Hit From Small-Cap Underperformance In Q3; Says Evergrande Not The Next Lehman Brothers

Corsair CapitalCorsair Capital was down by about 3.5% net for the third quarter, bringing its year-to-date return to 13.3% net. Corsair Select lost 9.1% net, bringing its year-to-date performance to 15.3% net. The HFRI – EHI was down 0.5% for the third quarter but is up 11.5% year to date, while the S&P 500 returned 0.6% Read More

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Q2 hedge fund letters, conference, scoops etc

Below is a new section we’re calling...

Think Differently

The purpose of this section is to bring a different perspective to the everyday conversations happening around the investment industry. My goal is to offer you a different, and hopefully sometimes comical, perspective on investing. So here goes…

Global Return Asset Management

Identifying Outsized Opportunity

In 1995, the dawn of a new era was born – that’s when the world was introduced to “online search.”

Within this burgeoning industry, Yahoo quickly became the big cheese. The company was attracting a then-unfathomable 100 million daily page views, its revenue was doubling, and within two years of going public – which it did a mere one year after being founded – its stock had climbed 600%.

And yet, Yahoo's business model was simple: attract users to its portal and pump content so they would stay within their walled garden of entertainment. To generate revenue, third-party marketers paid the company to post those bright-flashing banner ads that were impossible to avoid.

Global Return Asset Management

With its easy business model and the eye-popping returns, competition soon followed and they all emulated Yahoo’s playbook. Except for one.

This lone outcast was the 18th startup to enter the crowded field of online search. And its business model was the exact opposite of every other company – it wanted to attract users to its portal and then re-route them to other websites as quickly as possible. With its unusual business model and late start, investment analysts thought the outsider didn’t understand this industry.

Global Return Asset Management

As more companies entered the space, Silicon Valley began steaming with competition. And what do industry heavyweights do when that happens? They buy competitors. So, Yahoo approached this black-sheep-company and offered to buy it. But with a $5 billion-dollar price tag, Yahoo balked and walked.

By now you've probably guessed that little competitor is named Google.

Now fast forward 18 years to 2016. That’s the year Yahoo was acquired by Verizon for less than $5 billion dollars. Simultaneously, Google had a market cap over $500 billion dollars.

So, what’s the point?

Google’s business model was radically different and everything the company did was outside the norm. Yet this is precisely why the company succeeded and continues to succeed – because it’s outside the normal distribution where you find outsized results from people who are Thinking Differently.

How are we at Global Return Thinking Differently about the technology we use and our potential investments? Call to find out!

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Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
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