Just reading the latest Hussman annual report for his funds (as opposed to his weekly market comments, which I frequently post quotes from).
"From the inception of Strategic Growth Fund on July 24, 2000 through June 30, 2012, the Fund achieved an average annual total return of 5.55%, compared with an average annual total return of 1.29% for the S&P 500 Index.I've mentioned before that Hussman has great macro commentary, but I really do not like his stock selection.
2012, Strategic Growth Fund had net assets of $4,936,808,483, and held 116 stocks in a wide variety of industries. The largest sector holdings as a percentage of net assets were health care (33.1%), consumer discretionary (24.1%), consumer staples (17.5%), and information technology (17.3%). The smallest sector weights were in energy (3.4%), telecommunications (1.4%), financials (1.0%), and materials (0.8%).
Holdings with losses in excess of $20 million during this same period were BMC Software, Research in Motion, Dell, Best Buy, Endo Health Solutions, Illumina, SunPower, and First Solar."
His equity losses were in hopeless, failing businesses. What is he still doing in Best Buy and photovoltaic solar companies? Why doesn't he write a weekly letter about what he sees in Dell?
I'd also like to see weekly letters about why he is massively overweight health care (especially pharma) and massively underweight energy. He has more allocated to Coke and Pepsi in the strategic growth fund than to the entire energy sector!
He writes a lot about macro issues like market valuation, profit margins, etc - and I think he is write about those issues and invests appropriately (through decisions to hedge or not hedge). He never writes about business models, company valuation, or the attractiveness of different sectors - and I see that lack of thought showing up in the makeup of the equity portfolio.