Jeff Auxier

Charles

Mr. Auxier runs Auxier Focus Investor AUXFX.

Link to his latest quarterly report:

http://auxierasset.com/2012/12/31/auxier-report-year-end-2012/

Since 1999, this guy knows how to control risk and still beat the market:



Down side and draw down deviations 7.4% and 8.6%, respectively, through end of last year.

He also initiated an institutional share class last year with a bit better ER of 1.1 for $250K min versus 1.25 for investor class. Auxier AUM is currently $270M, up from $147M when David first profiled AUXFX a couple years back, now archived.

From Mr. Auxier's latest commentary:

The power of compounding is so phenomenal that a long-term investor should strive to avoid losses that interrupt the process. We did not believe the Federal Reserve would instigate an $85 billion a month bond buying campaign, dubbed “unlimited QE,” that’s focused on the unemployment level. Allocating roughly a trillion dollars at today’s record-high bond prices makes no sense. Excessive borrowing to buy wildly overpriced assets are common causes of capital destruction. Misallocation based on extremely easy credit has contributed materially to the two major market declines in the past 12 years. This past year the mindless rush for yield drove investors into the danger zone once again. “Stretching for yield” without understanding the source or true risk for yield contributed to the financial crisis in 2008. This year, across the globe, total central bank stimulus could exceed $8 trillion. This is unprecedented, can’t be ignored, and provides a powerful but artificial tailwind for equities.

Prospective investors in the Fund often ask why we steadfastly avoid such high-profile tech stocks as Apple and Facebook that dominate coverage on CNBC and other financial media. Our answer is that we prefer to own comparatively mundane businesses like Unilever and Tesco PLC that actually have benefited from technology’s inexorable march toward lower unit prices and profit margins.

And from David's original profile:

Management’s Stake in the Fund: rather more than $2,000,000. Mr. Auxier reports investing his entire personal retirement into the fund and has committed to never selling a single share while he still manages the fund. The company reports that “everymember of the Auxier team has significant percentages of their personal net worth invested in the Auxier Focus Fund.”

scott

"The power of compounding is so phenomenal that a long-term investor should strive to avoid losses that interrupt the process. We did not believe the Federal Reserve would instigate an $85 billion a month bond buying campaign, dubbed “unlimited QE,” that’s focused on the unemployment level. Allocating roughly a trillion dollars at today’s record-high bond prices makes no sense. Excessive borrowing to buy wildly overpriced assets are common causes of capital destruction. Misallocation based on extremely easy credit has contributed materially to the two major market declines in the past 12 years. This past year the mindless rush for yield drove investors into the danger zone once again. “Stretching for yield” without understanding the source or true risk for yield contributed to the financial crisis in 2008. This year, across the globe, total central bank stimulus could exceed $8 trillion. This is unprecedented, can’t be ignored, and provides a powerful but artificial tailwind for equities."

Exactly. Very impressive performance and compelling fund, as well.