HUSSMAN INVESTMENT TRUST
DUE DILIGENCE INFORMATION
What is Dr. Hussman’s investment background?
Dr. Hussman holds a Ph.D. in economics from Stanford University (1992), and two
degrees from Northwestern University: a Masters degree in education and social
policy (1985) and a bachelors degree in economics (1983, Phi Beta Kappa). Dr.
Hussman is the president and principal shareholder of Hussman Econometrics
Advisors, the investment advisory firm that manages the Hussman Funds. He is also
the President of the Hussman Investment Trust.
Prior to managing the Hussman Funds, Dr. Hussman was a professor of economics
and international finance at the University of Michigan. His academic research
centers on market efficiency and information economics. Of particular interest is the
potential for the market to be inefficient even when traders hold “rational
expectations”, and the ability of price movements to convey the private information
held by disparately informed traders even in the presence of “noise.”
Dr. Hussman has been active in the financial markets since 1981. In the mid-1980’s,
he worked as an options mathematician for Peters & Company at the Chicago Board
of Trade. In 1988, he began publishing the Hussman Econometrics newsletter. He
has been active in portfolio management since 1993.
Why are the Funds termed “Strategic”?
The essential objective of the Hussman Funds is to take those investment risks that
we expect to be rewarded, on average, and to avoid, hedge or diversify away those
risks not associated with a satisfactory expected return. The approach is strategic in
the sense that we do not believe that any specific type of investment risk (such as
market risk) is always worthwhile. Depending on the specific market environment, the
Funds may employ hedging techniques to minimize the impact of fluctuations in the
overall stock or bond markets, and may also take positions in individual securities
that differ substantially from their weights in aggregate stock or bond ma