Thank You
To Our Readers,
We will be taking next week off for Thanksgiving. And so, in the spirit of the holiday, we wanted to express our sincere thanks to all of you. We are grateful for your continued support, feedback, and engagement over these last 12 months. It is our belief that through rigorous research, intellectual honesty, constructive debate, and humility, great ideas can and will be uncovered, and our community of readers represents this belief in action.
We also wanted to take this opportunity to share our most read research articles from the year and send a quick Verdad business update.
Verdad’s Most Read Research Articles from the Past Year:
Every year at this time, we share the links to our most popular research pieces from the last 12 months.
Our most read piece of the year was “Private Equity: Still Overrated and Overvalued?” reflecting on what’s changed in private equity over the past four years.
Our second most read piece was “Bubble Stock Meltdown.” In this piece from January 2022, we argued that highly valued growth stocks had a long way further to fall.
Our third most read piece was "The Size Factor" in which we showed that small-cap stocks are trading at the steepest discount to large caps in 50 years.
Our fourth most read piece was "Picking Funds and Indices" which reviewed the literature on manager selection.
And, finally, our fifth most read piece, published in April, was “Risk-Reward in a Hiking Cycle” which looked at the relative performance of different asset classes in a hiking cycle and made the case for continuing to invest in fixed income.
Verdad Business Updates:
Since last fall, we have had several exciting new developments. Below are a few highlights:
We raised $230M for our Opportunity Fund II, which will deploy capital into micro-cap deep-value stocks in North America when high-yield spreads rise above 600bps.
We celebrated the three-year anniversary of the launch of our high-yield credit strategy, which is now up to almost $300M in assets.
We reached the one-year anniversary of the launch of Deephaven, a counter-cyclical strategy designed to profit from macro-economic volatility.
We invested significantly in the business. We moved into new office space in Boston, we built out a cloud-based data infrastructure on Snowflake, and we performed a detailed trade cost analysis with Abel Noser to benchmark our execution costs in small-cap stocks.
We hired a new investment analyst: please join us in welcoming Noah Kreutter to the Verdad team.
Thank you again from all of us at Verdad. We look forward to another year of research and discussion!
Yours,
Dan Rasmussen