The Active Management Channel

3 Dramatic Reversals in the Small-Cap Market

Co-CIO Francis Gannon discusses the dramatic reversals in the small-cap asset class and how they could impact 2017.

Hangovers and Roadmaps

2016 began with a thud and ended with a bang. After one of the worst-ever starts to a year, U.S. stocks managed to rebound and ultimately finish the year with solid gains.

Asian Fixed Income Can Ride the Trump Effect

Donald Trump’s policies appear almost certain to contribute to volatility in Asian markets during 2017. For active fixed-income investors who understand the dynamics of bonds and currencies in the region, this creates opportunities.

Rare Signatures

The key to drawing useful information out of noisy data is to rely on multiple “sensors.” Alone, each sensor may capture only a small portion of the true signal, and may not be greatly useful in and of itself. The power comes when the sensors are used together in order to distinguish the common signal of interest from the surrounding noise.

Downhill Racing Meets Value Investing

During the past six years, the Federal Reserve neatly groomed, manicured and then finely polished investment slopes for all asset classes by lowering interest rates to unprecedented levels – providing a substantial accelerant that indiscriminately drove valuations of all assets higher.

On My Radar: Thought — Word — and Action

Donald J. Trump was sworn in as the 45th President of the United States. President Trump steps to center stage. Bring us jobs, bring us tax reform and bring us a grand fiscal infrastructure spend. That would be positive.

Weighing the Week Ahead: Will Policy Uncertainty Increase Stock Volatility?

We have a normal calendar for economic data. There will be important news will come from corporate earnings reports. Since this earnings season is part of an inflection point – the end of the earnings recession– it is special.

Caveat Investor? The “Fiduciary Rule” and Unintended Consequences

Who could argue with an advisor having to act in the best interest of his or her client? Well, I’m indeed going to argue that it’s at least less obvious than it first appears. Even if the rule turns out to be a net positive, I’m going to argue that there are potential large unintended consequences to worry about. This is not a screed against such a rule.

How Not to Get Fired with Smart Beta Investing

It may not be my money, but it is my job. — Charles Ellis in Investment Policy: How to Win the Loser's Game

Investing Checklist for the Trump Era

Details of Donald Trump’s economic agenda remain an enigma. Yet there are already enough clues to help investors target companies that should do well in an era of unpredictable policies from the incoming president.

4 Small-Cap Specialists on 2017

Small-caps had a great run in 2016, but what should investors expect from 2017? Four veteran small-cap portfolio managers share how key developments in 2016 are shaping their 2017 outlook and portfolio positioning.

Avoid the Slippery Rungs of the Muni Ladder

Fearing rising rates, some municipal investors have sought protection in passive laddered portfolios. The strategy’s seeming simplicity packs a lot of allure—but also hidden risks.

Trump Deficits Will Be Huge

There is much we don't know about how the Trump presidency will play out. Will the Wall get built? Who will pay for it? Will it have at least some fencing? Will repeal and replace happen at exactly the same time? Will Trump throw a ceremonial switch? Will there be a Trump National Golf Course in Sochi? It's anyone's guess.

New Year, New Policies, and Managing the New Risks

We would like to take this opportunity to extend our warmest Holiday Wishes to all of our clients and their advisers. 2016 certainly was a year for the history books – from the Brexit surprise to the November surprise; the year certainly was not one that improved the reputation of pollsters!

Fear Not: EM Bonds Can Handle Higher Rates, Trump

Higher interest rates, a stronger dollar and Donald Trump: three reasons to avoid emerging-market (EM) debt? Not necessarily. Rising rates seem to be signaling faster growth, and that’s good news for many EM bonds and currencies.