Search Results
25 results found.
Reports of Value's Death May Be Greatly Exaggerated
Rob Arnott: “There hasn’t been a better time to be a value investor at any other time in my career. I look back at the tech bubble and I never thought I would see valuations stretched the way they were then. We're back to that, and then some." We invite you to revisit “Reports of Value’s Death Have Been Greatly Exaggerated” now published in the Financial Analysts Journal.
The Fundamentals of RAE: Pitfalls of the "Alpha Mirage"
With the soaring popularity of smart beta strategies, we see lots of investors flocking to whatever strategies have the best three-, five- and 10-year performance – and performance-chasing may ultimately be value-destroying. Some popular strategies’ historical success is little more than an “alpha mirage,” attributable mainly – and in some cases, entirely – to rising relative valuations. We favor a systematic process that results in dynamic factor exposures while still delivering broadly diversified, economically representative portfolios.
Strategy Spotlight: An Update on PIMCO'S Fundamental Index-Based Product Suite
The Fundamental IndexPLUS AR strategies combine the best of what passive indexing and active management aim to deliver: broadly representative, transparent equity exposure plus the potential for meaningful equity market outperformance.
Institutionalizing Courage
by Robert Arnott of Research Affiliates,
Most investors measure wealth in terms of the value of their portfolio. We believe it is better to measure wealth in terms of the portfolios ability to support sustainable spending. This months Fundamentals explores why this approach requires courage.
The Long ViewBuilding The 3-D Shelter
by Robert Arnott of Research Affiliates,
The third quarter was harsh not only for stocks but for asset classes that provide valuable protection against inflation. Our view is that, in the long run, the combination of rising debts and deficits and aging demographics will create a 3-D hurricane affecting capital markets. In this issue of Fundamentals, we look at how investors can start erecting inflation shelters to protect themselves from the coming storm.
Whack! Today's Misaligned Manager Selection Process
by Robert Arnott of Research Affiliates,
An old golfing adage proclaims: Drive for show and putt for dough. Hiring winning active managers is fun and sparks interesting cocktail chatter. But this is an incredibly difficult and time-consuming skill to learn. We prefer alternative beta strategies, which often display the benefits of the best active managers, are far easier to research, and generally are available at a far lower cost. By no means are these strategies gimmes, but, they should help investors avoid the double bogeys of active management and traditional passive management, giving them a better chance of beating par.
Does Unreal GDP Drive Our Policy Choices?
by Robert Arnott of Research Affiliates,
Gross Domestic Product is used to measure a country's economic growth and standard of living. It measures neither. Unfortunately, the finance community and global centers of power are wedded to a measure that bears little relation to reality, because it confuses prosperity with debt-fueled spending. Washington is paralyzed by fears that any withdrawal of stimulus, whether fiscal or monetary, whether by the Administration, the Fed, or the Congress, may clobber our GDP. And they're right. But, GDP is the wrong measure.
25 results found.
