I had a couple of interesting comments come in today; one from a money manager saying his own own account is the toughest one for him to manage, he says he is an emotional guy, but I'm assuming not as emotional as Frank Costanza.Another reader noted that some managers farm out the management of their own portfolios. I'm not sure how prevalent that is; I do manage money for one hedge fund manager, but other than talking to him one time on the phone I don't know the particulars of why I manage any accounts for him (someone else at the firm is his point of contact and apparently he has not complained about anything).
My wife teases me about being an emotionless robot where stocks are concerned, actually about everything. It is clear to me that the potential to be more emotional about my own money exists so I specifically tilt to yield and currency holdings and own less volatility than I might think is appropriate for a 40 year old client.
5 comments:
Roger should probably outsource his money management as well. Considering he likely owns 1.8% of just about every asset class with no correlations, he would probably do much better in a balanced fund without all the fuss and expenses.
IMH-C is a screaming buy.
RW and I were posting about IMH last week. I used to hold it when it was making money, but now their EPS is -$1.06.
Here are a couple of stories out today on the stock; and they are not positive. One is from the company itself:
NEW YORK, March 14 (Reuters) - Impac Mortgage Holdings Inc. (IMH) said on Wednesday the percentage of delinquent loans in its long-term mortgage portfolio doubled to 6.12 percent last year and warned of a possible cash crunch.
Industry observers said the news showed that problems with the riskiest loans in the mortgage industry have spread to borrowers with better credit histories. Impac's main business is extending loans to borrowers who don't qualify for loans backed by government agencies but who have better credit than subprime customers.
Impac, which has limited exposure to subprime loans, said problems in that risky mortgage sector are spreading to its business.
"This may result in a reduction of our mortgage originations and acquisitions and reduce or eliminate the liquidity currently available to us to fund our operations," Impac said in its annual filing with the Securities and Exchange Commission.
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Avoid risky trusts in chase for high yield: analyst 11:07 a.m. 03/14/2007 By MarketWatch
BOSTON (MarketWatch) -- Josh Peters, editor of the Morningstar Dividend Investor newsletter, warned income-oriented consumers away from the high-yield lure of U.S. and Canadian royalty trusts, noting that the income stream is too speculative for investors looking for strength and consistency.
Peters also issued a blanket warning against subprime lenders, at least until the industry's troubles can be adequately estimated.
In a radio interview with Chuck Jaffe, MarketWatch senior columnist, Peters recommended investors avoid Dominion Resources Black Warrior Trust (DOM), Cross Timbers Royalty Trust (CRT) and Impac Mortgage Holdings (IMH), and suggested selling Precision Drilling Trust (PDS).
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Mar 14, 2007 (M2 PRESSWIRE via COMTEX)
Impac Mortgage Holdings Inc. said on Wednesday the percentage of delinquent loans in its long-term mortgage portfolio doubled to 6.12 percent last year and warned of a possible cash crunch.
Industry observers said the news showed that problems with the riskiest loans in the mortgage industry have spread to borrowers with better credit histories. Impac's main business is extending loans to borrowers who don't qualify for loans backed by government agencies but who have better credit than subprime customers.
Impac, which has limited exposure to subprime loans, said problems in that risky mortgage sector are spreading to its business.
"This may result in a reduction of our mortgage originations and acquisitions and reduce or eliminate the liquidity currently available to us to fund our operations," Impac said in its annual filing with the Securities and Exchange Commission.
At the end of 2006, Irvine, California-based Impac said it owned $1.36 billion in loans that were 60 days delinquent, up from $733.3 million at the end of 2005.
If a borrower does not make payments after 60 days, Impac said it starts the foreclosure process.
It said it has enough cash to fund its operations, though current levels will only support limited asset growth, the SEC filing said.
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So then I would not consider IMH to be either a "screaming buy" or any kind of buy right now or down the road you might be screaming "SERENITY NOW! SERENITY NOW!
Of course some gamblers will roll the dice by buying and holding the stock for a few days in the hope that it will go up a buck and then sell, but this blog is about investing, and most of the viewers here are investors. (sorry about the long post)
so help me, i get that same emotionless rap here, lol. It is justified though.
If the toughest account for a money manager to manage is his own, that speaks volumes about the lack of respect he shows his clients, who trust him/her with their lifetime savings.
I'd drop that individual in a New York minute.
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