Capital Returns: Investing Through The Capital Cycle – Book Review

Capital Returns – Edward Chancelor / Marathon Asset Mgt. by Value & Opportunity

Capital Returns: Investing Through The Capital Cycle: A Money Manager’s Reports 2002-15 by Edward Chancellor

“Capital Returns” is an edited collection of investor letters from UK based Marathon Asset Management. Before reading the book, I actually didn’t know much about Marathon.

On their website, they summarize their strategy as follows:

At the heart of Marathon’s investment philosophy is the capital cycle approach to investment.  It is based on the idea that the prospect of high returns will attract excessive capital (and hence competition), and vice versa.  In addition, an assessment of how management responds to the forces of the capital cycle and how they are incentivised...