Mutual-fund manager David Miller, manager of the MBXIX fund, has been successfully beating his fund’s market benchmark for the last three to five years. He claims that this is because “most investors don’t know how to play defense”. Miller uses a strategy of both short and long positions across multiple asset classes to reduce risk and increase profits, below are four tips that he gives to investors to help them during the current market.
1. Don’t be long only
2. Follow the insiders
3. Follow the buybacks
4. Invest in oligopolies
So, have a mix of long and short positions, follow where money is flowing inside the company in terms of insider buying/selling and stock buybacks, and find companies that have a solid proportion of a market space with low competition. These tips will help you find companies and investments that will yield solid returns.