Results 1 to 15 of 15
  1. #1
    Im bored AF Backspin's Avatar
    Join Date
    Oct 2019
    Last Online
    @
    Posts
    5,295

    Value Investing Icon Jumps Off Manhattan Skyrscraper To His Death

    Desperate analysts languishing on the bottom rung of finance's long career ladder aren't the only ones committing suicide anymore.

    Charles de Vaulx, a renowned value investor and co-founder of International Value Advisors, "died suddenly Monday afternoon, leaving the asset management industry in shock. It was an apparent suicide, according to the New York Police Department, who confirmed to the press that de Vaulx jumped from the 10th floor of a Manhattan skyscraper to his death. The apparent suicide comes just days after he finished winding down his investment firm.

    As Barrons adds, "de Vaulx, 59, had built a long career as a risk-aware global investor who never deviated from his deep-value approach, even when it meant keeping as much as 40% of his funds in cash because he couldn’t find attractive investments during a 13-year stretch in which the markets favored faster-growing companies. De Vaulx’s conviction set him apart in the industry, even among other battle-tested contrarians." He was also a father of two.




    Charles de Vaulx
    For de Vaulx and thousands of other dedicated value investors, the last decade or so, where the Federal Reserve has perverted the price discovery process by flooding the financial system with liquidity, has been led to an extended drought for their businesses. Though value enjoyed a brief resurgence earlier this year, momentum growth funds and cryptocurrencies have produced world-beating returns while dividend-producing value stocks have seen valuations stagnate at levels well below their momentum rivals as investors place a premium on projections in a low-yield universe.

    And while even value-investing titan Warren Buffet has been forced to adapt by embracing Apple and other tech stocks, de Vaulx - a disciple of legendary French value manager Jean-Marie Eveillard at SocGen and then First Eagle, before he went on to launch IVA in 2008 - was a value purist until the literal end. He served as chairman and CIO of IVA until it closed up shop earlier this month.
    "Others were willing to compromise and try some new approaches to adapt," said Gregg Wolper, senior analyst at Morningstar Manager Research. "De Vaulx didn’t think that was appropriate, and stuck to the deep value approach. His investors appreciated it because there weren’t many other places to find that."
    And the end finally came earlier this year when International Value Advisers announced in March that it planned to liquidate its two US mutual funds. The liquidation was finalized last week. The firm added that "all associated accounts and funds will be similarly liquidated," Morning Star, which broke the news of Vaulx's suicide, reported.
    "It is with heavy hearts that we announce the passing of our Chairman and CIO, Charles de Vaulx," reads a statement on IVA's website. The firm had more than $20 billion in assets under management at its peak, but had shrunk to just $863 million as of the end of last year.

    But for all the years of peer-beating performance at First Eagle and then IVA, de Vaulx's investors apparently weren't thrilled when he took a step back as the shocking accumulation of debt in the post-crisis era deeply bothered him, making it near-impossible for him to pick stocks using his traditional methods.
    Very much a bottoms-up investor who did deep research into companies and would passionately make the case for them, de Valux was also attuned to broader macroeconomic forces. And the high levels of debt around the world—both government and individual—troubled de Vaulx. That along with high valuations contributed to his desire to hang on to cash, even as markets charged ahead. “The reason he stuck with it wasn’t because he was stubborn but because he felt it was the best way to invest to protect his shareholders from losses and it was his duty to preserve capital,” Wolper added.

    That conviction earned him respect in the industry. "Charles was a thoughtful, talented, disciplined, and risk-averse investor, who brought an intensity to his craft,” said Larry Pitkowsky, a fellow value manager at GoodHaven Capital Management. “And he was also a generous friend to many in the investment business."
    One source close to de Vaulx told the New York Post that his death was like "a Shakespearean tragedy." The Post also reported that de Vaulx had reportedly been depressed by the redemptions at his firm, especially when longtime clients pulled money.
    Last edited by Backspin; 29-04-2021 at 12:53 AM.

  2. #2
    Im bored AF Backspin's Avatar
    Join Date
    Oct 2019
    Last Online
    @
    Posts
    5,295
    Comment from the article

    It sounds like this was a lot more than a means to make money and a need to be right, but a principle to live by. They took away his ability to function with principal which was bedrock to him and he didn't want to adjust to that world, the inverted world. I'm sure he will get healing in the other realms.


    “You will be required to do wrong no matter where you go. It is the basic condition of life, to be required to violate your own identity.”-Philip K Dick

  3. #3
    Im bored AF Backspin's Avatar
    Join Date
    Oct 2019
    Last Online
    @
    Posts
    5,295
    Another comment

    The overwhelming majority of Wall Street people are mediocrities that need to bailed out by the government when the music stops playing. After the bailouts, no clawbacks, just a new feast. Merrill Lynch lost more money in 2008 that it ever made as a public company. A guy I heard of had millions in Lehman stock and lost his million dollar a year job selling shitty packaged mortgages to the unsuspecting world which caused economic collapse. Before he lost his job, he knocked down his house to put up a bigger mansion. After getting fired, he kept on with the mansion building figuring his millions in Lehman stock were worth something, but they weren't. The only person to go to jail for 2008 was Bernie Madoff. Eliot Spitzer destroyed much of the talent on Wall Street had and replaced it with lawyers at every firm. And Jon Corzine never went to jail for MF Global. It is a fraternity of douchebags. And de Vaulx was part of it. His mistake was not to work for a firm like Citadel that gets bailed out. No pity for a millionaire living in his 5th avenue high rise.


    Reality is, many Wall Street pros take Ritalin and other drugs to get an advantage over the average Joe. If there was no suicide note, which sounds likely, the dude was probably just off his meds.

  4. #4
    A Cockless Wonder
    Looper's Avatar
    Join Date
    Jun 2007
    Last Online
    Yesterday @ 09:35 PM
    Posts
    13,203
    Jesus, I would never have the bails to jump off a building.

    Heights give me the complete shits.

    Respect.

    If and when I decide to off myself it will be something much more peaceful probably involving drinking 2 bottles of the finest liqueurs available to humanity.

    Both of which will be Cuarenta-y-tres

  5. #5
    Im bored AF Backspin's Avatar
    Join Date
    Oct 2019
    Last Online
    @
    Posts
    5,295
    Quote Originally Posted by Looper View Post
    Jesus, I would never have the bails to jump off a building.

    Heights give me the complete shits.

    Respect.

    If and when I decide to off myself it will be something much more peaceful probably involving drinking 2 bottles of the finest liqueurs available to humanity.

    Both of which will be Cuarenta-y-tres

    Me too. Why go in such a painful way. He felt that pain in the last second.

    Take a BBQ into a small room and find a comfortable chair with some fine liqueur.

  6. #6
    Member

    Join Date
    Jan 2020
    Last Online
    Today @ 11:34 PM
    Posts
    220
    After his years running a fund, I imagine he accumulated some significant wealth of his own. Instead of ending his life, wish he would have considered starting a new one, perhaps in Thailand where he'd be in good company.

  7. #7
    Im bored AF Backspin's Avatar
    Join Date
    Oct 2019
    Last Online
    @
    Posts
    5,295
    Quote Originally Posted by TTraveler View Post
    After his years running a fund, I imagine he accumulated some significant wealth of his own. Instead of ending his life, wish he would have considered starting a new one, perhaps in Thailand where he'd be in good company.
    Some of these ppl are workaholics and have no hobbies or anything on the side. There is no side. Their mind and spirit is 100% invested in their industry. I know ppl like this.

    Why not waste some of your money and have some fun before you die ? I'd fly to Thailand and go on a binge.

  8. #8
    fully fledged Mutt-packer TheRealKW's Avatar
    Join Date
    Aug 2019
    Last Online
    Today @ 09:43 PM
    Posts
    7,938
    Quote Originally Posted by Backspin View Post
    Reality is, many Wall Street pros take Ritalin and other drugs to get an advantage over the average Joe. If there was no suicide note, which sounds likely, the dude was probably just off his meds.
    Your reality is universes away from others.

  9. #9
    Excommunicated baldrick's Avatar
    Join Date
    Apr 2006
    Last Online
    Today @ 11:33 PM
    Posts
    23,422
    Quote Originally Posted by TTraveler View Post
    wish he would have considered starting a new one
    or starting thousands of new ones by creating education opportunities for those less fortunate

  10. #10
    Im bored AF Backspin's Avatar
    Join Date
    Oct 2019
    Last Online
    @
    Posts
    5,295
    Quote Originally Posted by TheRealKW View Post
    Your reality is universes away from others.
    As noted in the first reply , that was one of the top rated comments from the article. It wasn't my comment.

    I agree with the first comment which has some compassion for the guy.
    Last edited by Backspin; 29-04-2021 at 06:12 AM.

  11. #11
    Chinese spy
    sabang's Avatar
    Join Date
    Feb 2006
    Last Online
    Today @ 11:33 PM
    Location
    BackinOz
    Posts
    33,594
    Well, I can certainly see why a Value investor might commit suicide these days. Every traditional investment and economic paradigm has been turned on it's head.

  12. #12
    Im bored AF Backspin's Avatar
    Join Date
    Oct 2019
    Last Online
    @
    Posts
    5,295
    Quote Originally Posted by sabang View Post
    Well, I can certainly see why a Value investor might commit suicide these days. Every traditional investment and economic paradigm has been turned on it's head.
    Yep. Thanks to the Federal reserve. Starving and killing value.

  13. #13
    Im bored AF Backspin's Avatar
    Join Date
    Oct 2019
    Last Online
    @
    Posts
    5,295
    The guy went from 20 billion under management to under a billion. A 95% decline. That's called getting a big F for your lifes work.

    First world problems bruh. He could have been some poor Filipino rice farmer , who drinks and plays cards all day. Tough life that must be.

  14. #14
    Thailand Expat
    Shutree's Avatar
    Join Date
    Feb 2017
    Last Online
    Today @ 07:04 PM
    Location
    One heartbeat away from eternity
    Posts
    1,539
    Quote Originally Posted by baldrick View Post
    or starting thousands of new ones by creating education opportunities for those less fortunate
    Yes, even if it turns out that his liabilities far exceeded his assets he could have found something worthwhile to do wth the rest of his life. He was probably very comfortable for most of is life, now he could have given something back, obviously a smart guy he could have applied himself usefully. Unless, of course, he thought there were criminal charges to come.

  15. #15
    Thailand Expat
    Bogon's Avatar
    Join Date
    Mar 2010
    Last Online
    Today @ 09:52 PM
    Posts
    5,335
    Quote Originally Posted by sabang View Post
    Well, I can certainly see why a Value investor might commit suicide these days.
    Yep. Nowadays you can buy an NFT for millions, invest in a MEME stock (MVIS, GME, AMC, etc), or chance it all on magic coins that go up or down in multiples of 10% depending on what a certain man who makes electric cars tweets.

    Quote Originally Posted by Backspin View Post
    Yep. Thanks to the Federal reserve. Starving and killing value.
    He was trading in deep value stocks, which is a different kettle of fish.

    Basically, he was buying into companies that were trading at least 1/3 of its value in assets (not earnings) or around 60% down on its PE ratio.

    Very difficult to put an intrinsic value on a company, the wins are massive if you get it correct, but you fall very hard if it fails.
    Black diamonds? I shit 'em.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •