Outside the Box

The Absolute Return Letter - July 2006

John Mauldin

July 31, 2006

My good friends and London associates, Absolute Return Partners, have recently released their monthly letter. The letter consists of two essays with the first by ARP President Niels Jensen and the second by partner Jan Vilhelmsen. Given that the equity sell-off around the world has been far more dramatic than in the US, I thought it might be useful to get a view from "over the pond."

Niels comments on the correlation between commodities and stocks and takes a look at what history can teach us from years past. In light of all of the talk, this is a contrarian's view opposed to the "it's different this time" camp (like we haven't heard that one before). On the other hand, Jan explores a sector of hedge funds that, by definition, do not live up to their name. He concisely summarizes this discovery by stating, "If you pay the high fees that hedge fund managers demand, you would at least expect to get something that you cannot easily create yourself."

With most observers ranting and raving about the "new economy," I trust that you will enjoy this article that bets against the consensus by siding with history and the data. Enjoy the read and continue to think "Outside the Box."

John Mauldin, Editor
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The Absolute Return Letter - July 2006

By Niels Jensen and Jan Vilhelmsen, Absolute Return Partners, LLP

So Much Nonsense

So much nonsense has been written recently, following the dramatic sell-off in equities that we thought we would take a quick look in the rear mirror and see what history may be able to teach us in terms of what to expect of both stock, bond and commodity prices over the next year or…

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