From our vantage point, 2016 provided more evidence of an aging bull market in complacency, during which the apprehensions of absolute-return value investors like ourselves were again elevated because of the generalized absence of fear itself. Not surprisingly, little attention was paid to valuation and tail risks, known as “Black Swans,” in an economic, financial, and geopolitical environment that might be characterized as the triumph of hope over experience…

Read entire report here: MCM 2016 Annual Report_