Nearly 20 years ago, I took a class taught by legendary
investor John Griffin and guest speaker Julian Robertson. The
class was held at my alma mater -- the McIntire School of
Commerce at the University of Virginia.
I had no way of knowing it at the time, but a talented
classmate of mine would go on to write several bestselling
financial books, including
The Ivy Portfolio
His name? Mebane Faber.
His friends call him "Meb." But when it comes to the stock
market... experts around the world are calling him a
"Of the many books I've read on investment strategies over
the past decade, I put [the Ivy Portfolio] at the top of the
-- Doug Short, Advisor Perspectives
"The most useful book could be [the Ivy Portfolio] by money
manager Mebane Faber. He offers a simplified model that regular
people can adopt."
"If he keeps up what he's doing, he's going to be famous
someday... He simply has too many good ideas."
-- Stansberry Research.
Put simply, Mebane Faber is an up-and-coming star in the
financial world. And for good reason.
Thanks to a groundbreaking academic study he published last
year, Mebane has introduced the financial world to a new way of
investing -- one that has delivered market-crushing capital gains
This simple strategy, which we're calling "Total Yield," looks
at the three ways companies can actively return money to their
Companies can return wealth by:
1.) Paying dividends
2.) Buying back stock
3.) Reducing their debt load
By back-testing the Total Yield strategy from 1982 to 2011,
Mebane found that companies returning the maximum amount of
wealth through these three channels consistently beat the overall
And the strategy's recent results have been equally as
About a year ago, Mebane launched a brand-new fund based on
this Total Yield strategy. It's called the
Cambria Shareholder Yield ETF (NYSE:
. Since then, investors have poured nearly $200 million into this
And they haven't been disappointed...
-- 24 of the top 25 companies in Mebane's fund have at least
doubled (or more) the S&P's return as of last November.
-- Some of the fund's top holdings gained as much as 105%...
124%... even 224%...
in less than a year
-- Since the fund's inception last May, it's handily
outperformed the S&P.
The results speak for themselves. No wonder
recently rated Mebane's new fund the "#1 ETF launch of 2013."
His fund didn't earn that title for nothing. To see what I
mean, take a look at the table below.
It's a snapshot of all of the 25 largest portfolio holdings in
Mebane's new exchange-traded fund (
) as of late 2013. You can see that every one of these stocks
made money. Three picks were up over 100%. One was even up over
224%. His "worst" pick was even up 40% -- that beats the
S&P's stellar 31% gain last year by 9 percentage points.
And back-testing Mebane's strategy -- over three decades --
clearly shows these results aren't a fluke. As I showed you
earlier, going all the way back to 1982, academic research shows
that Mebane's strategy consistently outperforms the S&P
This strategy even outperformed the S&P in the past three
bear market years. It eked out a 0.9% gain in 2001 when the
S&P 500 lost 12%, and it outperformed the S&P by an
average of 9 percentage points per year when the market got
crushed in 2002 and 2008.
While no magic formula can protect investors from all market
turmoil, Total Yield would have helped shelter investors from the
worst of these downturns.
So what's the secret to his success?
It's simple. The reason Total Yield outperforms is because it
looks at ALL of the ways a company distributes money back to its
While dividends, share buybacks and debt reduction are all
shareholder-friendly moves on their own... Total Yield
accelerates wealth accumulation by combining all three into one
I could talk all day about Mebane Faber and this
highly-successful Total Yield strategy, but there's no better
substitute than getting the details straight from the creator
That's why we recently had one of our most experienced
analysts, Nathan Slaughter, sit down to talk to the very man who
wrote the book on this wildly successful investment strategy.
I'd like to share our
exclusive interview with Mebane Faber
with you today.
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