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Back to topThe Smart Money Method: How to pick stocks like a hedge fund pro (Paperback)
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Description
In The Smart Money Method, the stock-picking techniques used by top industry professionals are laid bare for investors. This is the inside track on how top hedge funds pick stocks and build portfolios to make outsize returns.
Stephen Clapham is a retired hedge fund partner who now trains stock analysts at some of the world’s largest and most successful institutional investors. He explains step-by-step his research process for picking stocks and testing their market-beating potential.
His methodology provides the tools and techniques to research new stock ideas, as well as maintain and eventually sell an investment.
From testing your thesis and making investment decisions, to managing your portfolio and deciding when to buy and sell, The Smart Money Method covers everything you need to know to avoid common pitfalls and invest with confidence.
Unique insight is presented in several specific areas, including how to:
• Find stock ideas
• Assess the quality of any business
• Judge management’s ability
• Identify shady accounting and avoid dying companies
• Value any business to find bargain shares
• Navigate the consequences of COVID-19
And throughout, there are real-life investing examples and war stories from a 25-year career in stock markets.
The message is clear – you can beat the market. To do so, you need to learn and apply the insider secrets contained within this book.
About the Author
Stephen (Steve) Clapham is the founder of Behind the Balance Sheet, a leading investment research and investor training consultancy. He spent 20 years as an equity analyst at different investment banks, covering various sectors, and was consistently rated in the top 10 in his sector. He moved to the buy-side in 2005 and was a partner and head of research at two multi-billion dollar hedge funds.
Steve trained as an accountant and lives in London. He is regularly featured in the press, including the Financial Times, Sunday Times and City AM as well as on the Today programme on BBC Radio 4 and Real Vision, talking about accounting issues at quoted companies.
Praise For…
The Smart Money Method provides a treasure trove of ideas and insights for serious investors. Processes that have been honed by author Stephen Clapham over a 30-year career as a top equity analyst provide valuable lessons into where investors can most profitably channel their research efforts, the most effective methods to use, and the many nuances that need consideration. Peppered with wry anecdotes and some candid views on the industry, Mr Clapham's book also provides an illuminating gaze into the City and hedge funds.
The Smart Money Method's stated aim is to make its readers better at investing. While the book is light on the kind of how-to instructions that may serve a beginner, where it scores is in the abundance and richness of good ideas in its pages. So, buy it, read it and become a better investor. --Investors Chronicle
Clapham's excellent book offers a practitioner s perspective on fundamental analysis, demonstrating how top hedge funds use forensic accounting techniques to separate high quality, undervalued opportunities from value traps. --Tobias Carlisle, Manager of the Acquirers Fund (NYSE:ZIG) and author of The Acquirers Multiple.
Crisp and incisive. A must-read for anyone interested in picking stocks and understanding markets. --Oliver Shah, Business Editor, Sunday Times and author of Damaged Goods
An extremely good read for anyone wanting to master the art of stock picking. The author has had an uncanny knack of spotting winners and losers throughout his long career. --Peter Harrison, CEO, Schroders
A book crammed with a lifetime's professional experience with practical advice you won't find elsewhere. If you are picking stocks and you want to save time and money the best place to start is by buying this book. --Russell Napier, author, Anatomy of The Bear
An essential read. Leverage Stephen's wealth of experience and become a better investor. --Jon Moulton, Founder and Managing Partner, Better Capital
A superb book by one of the acknowledged experts in the field. Clear, compelling and beautifully structured, this should be required reading for anyone who wishes to understand what makes a great investment or a lousy one. Every young investor should read this and take careful note of Steve Clapham's experience from a lifetime of investing. --Quintin Price, former Head of Equities and Credit, Blackrock
When talking to Stephen I have always been reminded of what was said about the football player Terry Sheringham he ran the first five yards in his head. Stephen is like this a deep involvement with companies and markets over a long period of time has given him the ability to see the hidden motive, the start of the trend, the next likely development while others are still puzzling over what has been said. --Dominic O'Connell, Business Editor, BBC Radio 4's Today
I met Stephen in the 1990s, when he was an analyst covering the transport sector. Since then we have stayed in touch and I have always been impressed by Stephen's diligence and thirst to understand the dynamics of a company and its market. The Smart Money Method is a good read for everyone interested in investments, but will be of particular value to graduate investment trainees and non-professional investors, who are looking for more colour (and many interesting anecdotes) on how professionals make investment and divestment decisions. --Sir Brian Souter, Co-Founder, Stagecoach and Chairman, Souter Investments
Stephen Clapham's fast-paced The Smart Money Method has at least one idea on every page that fundamental investors will want to highlight in yellow and then add to their analytic toolbox. --Hewitt Heiserman, author, It's Earnings That Count
A very comprehensive book on the world of research and analysis. Steve doesn't just guide you through analysis but also tutors you in how to 'think' like a professional, successful analyst. Moreover, the book integrates other all-important facets of investment such as approaches to communication with decision-makers and clients, and portfolio maintenance. This is no surprise to me since I first met Stephen 25 years ago when he was already a highly rated analyst and I was a client, and since then he has had a successful career in hedge fund management. Therefore, the approaches which hedge funds use but rarely discuss can be gleaned from this authoritative book. Packed with practical step-by-step advice it is chatty in tone when it needs to be to get important messages across, and thus is wonderfully easy to read. --Ajay Gambhir, former manager, RWC Samsara
I knew Steve as a sell-side analyst in the past and his analysis leaves no stone unturned. This book outlining his research process is a great introduction for young analysts and will teach many experienced ones a thing or two. Recommended.--Martin Gilbert, Founder, Aberdeen Asset Management and Chairman, Revolut
Stephen is an extremely professional analyst with a long track record. I found his book easy to read and very helpful in terms of how to identify suitable companies to invest in. --John Allan, Chairman, Tesco plc and Barratt Developments and Vice President,CBI
Every ambitious founder, hoping to reach the stock market, should read this book to learn what to expect. --Brent Hoberman, Co-Founder and Executive Chairman, Founders Factory, Founders Forum, firstminute capital