The Active Management Channel

Radioactive: Is Passive’s Dominance Over Active Set to Wane?

One of the key themes I and my strategy colleagues highlighted in our 2017 outlook was the regime change from monetary policy being the only game in town to fiscal policy taking at least one of the reins.

Weighing the Week Ahead: Have Stock Prices Lost Touch with Reality?

It is a big week for economic data and the first address to Congress from the new President. Most of the punditry is engaged in a collective head-shake about overbought conditions. Even if the data flow remains strong.

Bond Investors: Don’t Fear the Fed

In December, the US Federal Reserve (Fed) raised interest rates, as predicted, and raised expectations for more increases in 2017. At Invesco Fixed Income, we believe one of the best ways to handle a rising interest rate environment is to have a portfolio diversified across different credit-related asset classes.

CEF Market Outlook

Closed-end funds present potential opportunities to investors this year despite “rate hikes on the horizon,” CEF professionals say..

Shundrawn Thomas on the State of the ETF Industry

Shundrawn Thomas serves as Northern Trust’s executive vice president, head of funds and managed accounts group. I spoke to him about his annual president’s perspective on the ETF industry, which was just released.

The Rise of Passive and Indexed Investing, and its Effect on Market and Liquidity Risk

Dramatic growth offers significant opportunity for the index fund industry, but not without its risks. As assets move from active to passive management, what systemic danger lurks? What market disruptions might occur with a concentration of assets backed by monolithic indexes on autopilot?

The True Value of Macro Forecasting for Value Investors

Macro forecasting has been disapproved of by value investors, and for 20 years this attitude paid off. The economic climate was favorable, the stock market was in overdrive and price-to-earnings ratios were expanding. Macro did not matter – until the housing bubble and financial crisis. Value investors who had had their heads in the sand got annihilated.

Were Fama and French Right about Value and Size? An Ex-Post Test

Fama and French’s 1992 seminal research, which identified the value and size factors, was met with skepticism. Even the authors questioned the underlying economic rationale for their findings. With a quarter century of data, let’s look back and see if the skepticism was justified. Have value and small-cap outperformed?

Pending Home Sales Fall in January

Today the National Association of Realtors released the January data for their Pending Home Sales Index. According to the National Association of Realtors®, "Insufficient supply levels led to a lull in contract activity in the Midwest and West, which dragged down pending home sales in January to their lowest level in a year."

On My Radar: Fed Eyes Aggressive Rate Increases

Citing an improving economy and the possibility of more spending and lower taxes from the Trump administration, Fed officials are signaling rising rates immediately ahead.

This Natural Gas Opportunity Is Years in the Making

This week I was in beautiful Argentina with a diverse team of investors and mining executives. Together we toured various natural gas and crude oil mining projects in Tierra del Fuego, Mendoza and Santa Cruz, where we had the opportunity to speak with Governor Alicia Kirchner, elder sister to former Argentinian president Néstor Kirchner.

Trending

The term “trend” now has a broader use. Trending is a term used in reference to the buildup of posts on social media. And we find ourselves in a day and age when the leader of the free world is posting using stream of consciousness—annoyingly against a department store that no longer supports his daughter’s line of clothing or worse, tweeting against judges who disagree with his policies. This is a trend we shouldn’t miss.

Money, Money Everywhere, Not an Asset to Buy

During the next two decades, an estimated 76 million baby boomers – the bulge of the Western population born between 1946 and 1964 – will begin the process of going from growing and accumulating earnings to retiring and distributing their wealth.

Life After Beta: Are You Asking the Right Questions About Alternatives?

Investors have had mixed experiences with alternative investments lately, as the market landscape has made it hard for managers’ skills to shine. It’s time to ask some pointed questions to get the right fit.

K2 Advisors : Why We Like Activist Hedge Strategies

Given the unpredictability of today’s financial markets, many investors are looking to reduce the impact of market volatility on their portfolios. Hedge-fund strategies—a type of alternative investment strategy—may help by potentially offering additional diversification, new sources of return and reduced risk.