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The Smart Money Method

How to pick stocks like a hedge fund pro

By Stephen Clapham

Paperback £19.99 / $25.00
eBook £14.99 / $19.00
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The Smart Money Method

How to pick stocks like a hedge fund pro

By Stephen Clapham

Jacket text

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.

Reviews

Stephen has done a great job of writing a book that provides the reader with a repeatable framework in which to evaluate investment ideas. He does this without jargon and in an easy to read and enjoyable format. This is a great book for both the beginning investor as well as the investment professional looking to improve their investment skills.

Jonathan Boyar Principal, Boyar Value Group

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

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

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

Media coverage

From This is Money:

For anyone who wants to understand the work the process that goes in to analysing a company this book is invaluable.

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From MoneyWeek Podcast:

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you need to know what you’re doing; plus, the shift from growth to value; and why the next ten years will be very different from the last.

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From Opto:

His extensive experience has made him a highly sought-after hedge-fund expert, and his recently published book, The Smart Money Method: How To Pick Stocks Like A Hedge Fund Pro, gives readers a guide to understanding how smart money invests.

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From Stockopedia:

Also, Stephen Clapham continues to impress, with interesting perspectives. I must read his new book, The Smart Money Method.

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From Master Investor:

The Smart Money Method provides just what you want from a stock picking investment book. The core text provides a clear framework for finding your own investment ideas, interspersed by stories of Clapham’s time working in the investment industry which provide further insights into how professional money managers go about their business. The book is… Read more »

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From Opto:

His extensive experience in the area has made him a highly sought-after expert on the subject and his recently published book The Smart Money Method provides readers with a useful guide to understanding how smart money invests.

Read More…

From Investors Chronicle:

Phil Oakley chats with former analyst and hedge fund investor Steve Clapham about his new book The Smart Money Method and how to research companies well.

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From Hardman & Co:

The Smart Money Method explains the research methodology Steve developed initially as a sell-side analyst and in more depth as a partner and head of research at two multi-billion hedge funds. Behind the Balance Sheet is an investment research and training consultancy and Steve wrote the book to promote his online training school for private… Read more »

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From State of the Markets Podcast:

Steve is the founder of Behind the Balance Sheet. Following a 25-year career as an investment analyst, Steve decided to put that experience to good use and train the next generation (or sometimes the current generation) of investment analysts, private investors, and portfolio managers. Steve’s experience includes working on the ‘sell side’ for a number… Read more »

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From Global Capital:

Behind The Balance Sheet trains analysts and investors in forensic accounting, among other things. Clapham has also recently published a book on his work called The Smart Money Method.

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From AJ Bell Money & Markets:

This week’s podcast guest is ex-hedge fund partner Stephen Clapham who shares his wisdom on finding information to help with investment decisions.

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From Bloomberg:

Bloomberg speak with Stephen Clapham, a forensic accountant, and the founder of Behind The Balance Sheet, who explains why understanding what’s really going on with these companies is so tricky.

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From City A.M.:

Opinion piece written by Stephen Clapham, founder of Behind the Balance Sheet and author of The Smart Money Method.

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From Investors Chronicle:

There is an illuminating illustration of the time cost of research in the soon-to-be published book ‘The Smart Money Method’ written by Steve Clapham, a former top hedge fund analyst and founder of training and research firm Behind the Balance Sheet. Mr Clapham puts the hours needed to really get to know a company at… Read more »

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Contents

1: What Makes a Good Investment?
2: Finding Ideas
3: Testing the Hypothesis
4: Understanding the Industry
5: Quality
6: Analysis of Company Quality 7: Management
8: Company Financials
9: Valuation
10: Communicating the Idea
11: Maintaining the Portfolio
12: Macro-Economic Analysis 13: Looking Forward
14: COVID-19 Postscript



Published: 24/11/2020
Pages: 288
Formats: paperback - ISBN 9780857197023
ebook - ISBN 9780857197030
Media enquiries

If you’d like to get in touch with the author for interview or comment, or you’d like a review copy of this book, please contact us at pr@harriman-house.com or call +44 (0)1730 233870.

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We offer discounts for bulk purchases. Please contact specialsales@harriman-house.com for a quote.