The Specialty Investments Channel

Myths and Misconceptions

History shows, and investment strategists tout, that small cap stocks are the best performing asset class. While small caps outperformed the runner-up, large cap stocks, over the last nearly 100 years, research has shown that the outperformance hasn’t persisted over all multi-year time periods and that the outperformance is concentrated in microcap stocks.

Five Surefire Ways to Lose a Prospect

It’s been challenging to limit this list to five surefire ways to fail to convert a prospect, but these will be a good start.

A Long/Short Bridge Between Stocks and Bonds

Frothy stocks and well bid bonds can undercut portfolio performance if rates move higher, though long/short equity strategies can support long-run returns.

Advisors Leveraging New Programs to Launch ETFs

Over three years $1.4 trillion moved into low-fee funds including ETFs, which are quickly becoming the most popular of 18 major vehicles. The complexity of launching an ETF and their operational overhead has kept many firms from launching funds. New programs now help firms launch and manage ETFs.

Managed Futures Strategies: Inside the “Black Box”

Momentum, trend-following, managed futures - are terms that can seem intimidating and opaque for many investors. But, while these types of investment strategies may be less familiar than traditional strategies, they can be quite intuitive and offer attractive diversification and return potential that is worth getting to know.

Amazon’s Lessons for Growth Investors; A New Smart-Beta Growth Strategy

Growth stocks have been outperforming their value counterparts and investors can look at Amazon as an example for why this happened. Meanwhile, new research on a smart-beta-growth strategy looks at the theoretical foundations surrounding traditional growth indices.

Positive Developments for Hedge Funds

Sentiment toward hedge funds has been negative in recent years, in large part because industry returns were poor in 2015 and the first half of 2016. Also, CalPERS and other institutions left the asset class, amid a wider debate about active management in general, and hedge funds’ fees, in particular.

Masters Series Interview with Richard H. Thaler, PhD

Richard Thaler, PhD, is considered one of the founding fathers of behavioral economics, the nexus of economics and psychology—specifically how people and organizations make decisions that may have negative consequences and how they frequently repeat these mistakes. 

Live from Newport Beach. It's Smart Beta!

Our headquarters in Newport Beach is only 50 miles from the Hollywood studios, although the drive can take up to two hours in rush-hour traffic. But far more than traffic separates the studios’ world from ours.

Mixed U.S. Energy Earnings Reinforce Credit Views and Outlook for Range‑Bound Oil Prices

U.S. exploration and production (E&P) companies delivered mixed second-quarter earnings results and guidance, with evidence of operational missteps by certain Permian Basin producers. One particular large producer’s report of drilling delays, higher planned well costs and higher gas-to-oil ratios sparked broader concerns about whether Permian producers can maintain efficiencies and execute on plans to drill larger wells.

Avoid Being "Burned" by Bank Loans

When talking with potential investors, a refrain we often hear is, “I was burned by bank loans before, and now I’m not sure if I should buy them again.” Is this fear unique to the bank loan asset class?

“Death by Amazon” a Real, Though Not Indiscriminate Threat

Stocks of some innovative companies with differentiated business models may be unfairly punished along with those genuinely vulnerable to Amazon’s disruption.

Are Low Vol ETFs as Smart as They Sound?

“Smart Beta” ETFs and their low-volatility ETF progeny may deliver a lower beta against their relevant benchmarks, but they’re not immune to bouts of volatility, and their returns frequently come up short.

US Equity Downturn Fears Deserve Attention

Even amid the midsummer lull, more investors are hunkering down and preparing for a potential correction. As the S&P 500 Index continues its relentless grind higher, we think it’s worth considering proactive steps for a change in the environment.

Factor Fitness: Understanding Equity Exposures

Equity factors are increasingly used by investors to help guide their portfolio allocations. So it’s important to have a good grasp of what factors are and how they perform through an economic cycle, in order to invest effectively.