Punch Card has delivered an impressive net annualized return of 14.5 percent since its inception on June 1, 2004, through September 30, 2011. During the same period, the S&P 500 averaged a 2.2 percent annualized return. Founder Norbert Lou, at 37 years old, achieved these results with minimal shorting, and no portfolio leverage, and maintained average cash balances of 25%.
Norbert Lou, originally from Windsor, Connecticut, attended Windsor High School, which historically ranked lower among Connecticut’s public high schools. Despite this, Norbert excelled academically, winning the school spelling bee at age 10 and taking advanced math courses at the University of Hartford while in high school. He graduated as valedictorian, garnering praise from teachers but facing indifference from peers. Norbert continued his education at Cornell University, where he pursued a major in agricultural and biological engineering while completing pre-med requirements. A pivotal internship at J.P. Morgan during his junior year solidified his interest in finance. By senior year, Norbert interviewed with major investment banks such as Morgan Stanley and secured a job offer at Bridgewater Associates, then an emerging hedge fund firm.
Punch Card Management is a hedge fund managing $588,346,236 in discretionary assets, as reported in their Form ADV dated March 2024, serving one client. Their most recent 13F filing for Q1 2024 disclosed $399,972,918 in managed 13F securities, with a top 10 holdings concentration of 100%. Punch Card Management's largest holding is Berkshire Hathaway Inc Class A, with 349 shares held.
