In order to meet our most important goal -- delivering outstanding long-term performance to our clients -- our investment process embraces lessons culled from diverse sources such as science, nature, literature, sports, academic research and behavioral finance. Security markets are vibrant and complex systems, and we believe that investment management strategies must adapt and evolve to ensure continued success. We would like to share what we've learned with you.
The goal of the Thought Leader Forum is to introduce our clients to prominent non-traditional thinkers who have had a significant influence on our investment process. We believe that one of our critical competitive advantages is embracing mental models that lie beyond the traditional world of finance and investing. Come ignite your mind by exploring the transcripts of past forums.
Visit the websiteOur book club, On the Same Page, is one of the ways we share our philosophy of learning agility with our clients. The program not only enhances our individual knowledge, it also helps us to develop a common language and understanding. Books are selected from various fields to ensure a multidisciplinary curriculum. Our process is different than that of other investment firms and our commitment to constant learning and improvement is a key feature of that difference. More than just a book club, On the Same Page is an integral part of LMCM’s unique investment philosophy.
We are currently reading: The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies by Scott E. Page.
2007 titles include: The Halo Effect... and Eight Other Business Delusions That Deceive Managers by Phil Rosenzweig, Another Day in the Frontal Lobe by Katrina S. Firlik and The Origin of Wealth by Eric D. Beinhocker.
“Management should allocate capital effectively and treat shareholders fairly.”
Bill Miller, our co-founder and Chief Investment Officer, published this succinct directive in an article he wrote for Directors and Boards in 1991. Since then, our investment team has continued to engage companies, publish articles, and use its influence to promote these standards. Our Corporate Governance Group, added to the investment team in 2006, is dedicated to developing and promoting those efforts.
Building on the firm's legacy of thought leadership and advocacy for good corporate governance, our Corporate Governance Group shares observations and ideas about a variety of corporate governance issues in On Governance.
Our Chief Investment Strategist, Michael Mauboussin, offers his findings on concepts that we believe savvy investors should be considering today.
The Failure of Arbitrage
Leverage, Liquidity, and the Persistence of Inefficiency
May 14, 2008 - 
Read
ROIC Patterns and Shareholder Returns
Sorting Fundamentals and Expectations
January 18, 2008 - 
Listen Read
Fat Tails and Nonlinearity
Diversity Breakdowns and Invisible Vulnerability
December 20, 2007 - Listen Read
Death, Taxes, and Reversion to the Mean
ROIC Patterns: Luck, Persistence, and What to Do About It
December 14, 2007 - Listen Read
Was Harry Potter Inevitable?
Cumulative Advantage, Counterfactuals and the Halo Effect
September 7, 2007 - Listen Read
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Founded in 1984, The Santa Fe Institute is one of the world’s leading scientific research laboratories which conducts multi-disciplinary research in complex systems theory.
This independent, non-profit organization has been an important partner in helping us refine our investment philosophy.