Search Results
Results 2,451–2,500
of 3,362 found.
The Case for Active Equity Management
The growth of passively managed funds adds to market inefficiency by increasing the prevalence of price indiscriminate buyers and sellers. This can create inefficiencies that active managers can exploit. Weakening global liquidity means that there will no longer be a rising tide of liquidity that lifts all boats, and dispersions in the returns offered by individual stocks are likely to increase.
If Factor Returns Are Predictable, Why Is There an Investor Return Gap?
by Jason Hsu of Research Affiliates,
In the latest piece from Research Affiliates, vice-chairman and co-founder Jason Hsu looks at how substantial evidence supports cyclicality in factor returns, making them predictable. Evidence also exists that indicates investors aren't fully benefiting from this insight due to behavioral biases. But contrarian investors practicing countercyclical timing can benefit.
Gundlach – The Scariest Indicator in the World
by Robert Huebscher,
Those Federal Reserve governors who intend to vote for an increase in rates at their December meeting need to take a close look at some of the charts Jeffrey Gundlach presented on Tuesday. One chart – which Gundlach called his “scariest” – carried a particularly ominous signal for the global economy.
Friends
by Jeffrey Saut of Raymond James,
“Friends” . . . except in this case I am not referring to the 1994 TV sitcom, but the true friends I have met over the past 45 years in this business. I thought about this theme two weeks ago as I was sitting in Bobby Van’s, across from the NYSE, listening to great stories from my friend Art Cashin and Eric Kaufman (captain of the sagacious VE Capital), and other members of Friends of Fermentation (FOF). As I listened to Arthur, I could not shake the feeling that these classic Wall Street stories need to be scribed lest they be lost forever.
No content
The previous installment in my series evaluating the performance of the market’s most prominent actively managed mutual fund families focused on Russell, one of the largest players in the world of investment consulting (where firms provide guidance to pension plans and other institutional investors, as well as to investment advisors, on picking the best active managers). Today, we’ll turn our attention to Russell’s largest competitor in the consulting field, SEI.
How to Invest in a Slowing China World
by Bryce Coward of GaveKal Capital,
The obvious question is then how one positions their portfolio in a world where China is on a structurally slowing growth trajectory. In an effort to not over-complicate things, let’s look at China from the 30,000 foot view. From this perspective we observe two things that will unfold over the next decade.
Weekly Market Summary
by Urban Carmel of The Fat Pitch,
After rising 6 weeks in a row, equities fell hard this week. SPY has returned to the bottom of its former trading range. NDX, which is leading, closed an important open gap that should now provide initial support. So far, no foul for either. A number of studies suggest an upside edge in the short term. Overall, however, risk is rising, as the market now has a potentially bearish technical pattern that it didn't have in August.
On My Radar: Poking At The Beehive
“The European Central Bank is likely to continue negative rates, extend and enlarge QE, and acquire more balance sheet assets over time. ECB policy influences other nearby non-euro jurisdictions. Essentially, all short-term interest rates of higher-credit-grade and mid-grade countries in Europe are negative, and the policy of negative rates is spreading as the rates go even lower (more negative).” – David Kotok
On Why Emerging Market Funds Are Ill Equipped to Capitalize on a Rebalancing China
by Bryce Coward of GaveKal Capital,
We’ve hashed out the arguments for a persistently slowing China in this blog many times, so we won’t go there again today. Instead, we want to focus on a different aspect of the slowing China reality: the fact that most investment products that focus on emerging markets are overweight exactly the wrong economic sectors. In the scenario of a slowing and rebalancing China, the areas of the economy that are likely to benefit the most are different from the areas that gained from the infrastructure build out since 2000.
Is the Selloff in High-Yield Bonds Warranted?
by Jon Adams, John Boritzke, Sandy Lincoln, Alan Schwartz, Lowell Yura of BMO Global Asset Management,
The commentary reviews the patterns in the high-yield market over the past few years, particularly how investors have fled the asset class in light of various expected crises, which turned out to be unwarranted. BMO GAM believes investors are once again overestimating default risks, evidenced currently by fears of a global growth scare spurring high yield outflows. Some may feel these outflows and default risks imply a recession is nigh, but the MAST team feels our economy is a long ways off from signaling such an event.
ETFs: Before You Buy, Read the Warning Label
by Peter Kraus of AllianceBernstein,
We don’t hate ETFs. In fact, we use them ourselves and are considering managing client assets in the active ETF space. When used properly, these instruments can be a useful component in a well-diversified portfolio. But ETFs aren’t perfect, and relying heavily on them without understanding their imperfections is risky.
Managing Fixed Income in a Changing Interest Rate Environment
Tired of the constant chatter about where interest rates are headed and what will happen when they finally rise? We’ve compiled the following five ideas for positioning your clients’ bond portfolios to capture opportunities and navigate risks in fixed income — regardless of where rates go.
On My Radar: Resolve To Keep Happy
“U.S. interest rates are already zero. Japanese interest rates are zero also. European interest rates are negative. All of these central banks have printed trillions of dollars in their respective currencies under various QE programs. They are at the point where they simply cannot print trillions more without risking political backlash or the collapse of confidence in their currencies.” – James Rickards
The Weather Will Change for MLPs
The advantages and competitiveness of North American shale assets will only grow over time and we expect production to resume its increase at some point. We believe the recent sell off in MLPs is due to forced selling and a typical equity market cascade and overshoot, which has created a potentially attractive opportunity for investors to allocate to the asset class. Adapting Mark Twain to the MLP market, the reports of its demise are greatly exaggerated.
The Upside Potential in Buying Some Puerto Rico’s Bonds Now
by Robert Kane of BondView,
Puerto Rico’s municipal bonds have crashed just like Greek bonds did three years ago. Puerto Rico issues hundreds of different types of bonds. They shouldn’t be viewed as a homogeneous h?oard??. They have varying degrees of credit quality and risks. Some are insured. Many have become mispriced because of the company they keep and are trading at a steep discount to face value.
4Q 2015 Outlook: Key Issues Have Not Changed Much This Year
As the final quarter of 2015 begins, we are reminded of several topics of focus from the start of the year: concerns that global central bankers are stuck with their current monetary policies because the global economy now depends on them; market acceptance that higher U.S. interest rates are inevitable, even if they rise only slightly; and favorable prospects for U.S. consumers, who benefit from a stronger labor market and lower energy prices. If the topics sound familiar now, it is because little has changed in these areas while global risks have increased for several reasons.
On My Radar: I’m Rooting For Ray
There is a great deal of research around investor behavior. For example, our brains notice when a group provides an answer that is different from ours, the disparity is unpleasant. For many, aligning with the group is more rewarding for the brain than being independent and correct.
A Bond-Free Portfolio: Why Cash Should Replace Bonds to Reduce Risk and Improve Returns
by Kendall Anderson of Anderson Griggs,
In a recent interview, Howard Marks, the great investor and co-chairman of Oaktree Capital, quoted the original Dr. Doom, Henry Kaufman, who once said “There are two kinds of people who lose money: those who know nothing and those who know everything.” Those of us who are selling investment services, whether portfolio management or investment products, have a tremendous ability to locate or create research that rationalizes our approach to building and maintaining a portfolio.
Five Bad Reasons For The Fed To Raise Rates Now And One Good Reason Not To
by Paul Kasriel of The Econtrarian,
A couple of days before the September 16-17 FOMC meeting, I happened to be listening to the NPR program, “On Point”, the subject of which was the appropriateness of a Fed policy interest rate increase at that time. Of the guests on the show, the principal advocate of Fed “lift-off” was a William Cohan, who had written an August 28 New York Times op-ed entitled “Show Some Spine, Federal Reserve”.
Third Avenue Management Defends Its Pursuit of Alpha
by Larry Swedroe,
Bloomberg TV recently invited me onto their new show, Bloomberg GO, for a short debate on active versus passive investing with David Barse, the CEO of Third Avenue Management. Barse stated his funds had been able to beat their index benchmark. Let’s go to our trusty videotape to see if Third Avenue has, in fact, been delivering alpha.
Third Quarter 2015 Economic & Capital Market Summary
On the one hand, the domestic economic story is playing out pretty much as we had thought. Economic growth is muddling along in the 2% area. The unemployment rate is low, but job growth is still limited to service sector jobs which pay lower wages. Inflation is barely rising as commodity prices continue to plunge and wage growth has been flat. The Federal Reserve is poised to raise interest rates, but has deferred making the first increase in over nine years under pressure from global economies who fear that an increase in short term interest rates will impair the fragile global growth.
Zero Yields & The Debt Ceiling
by Anthony Valeri of LPL Financial,
The Treasury issued new three-month Treasury bills (T-bills) at 0% yield at auction last week and is on pace to do so again on October 13, 2015. Zero percent T-bill yields, or even lower, are not new, but 0% prevailing at an auction is unusual and made media headlines.
Smart Beta 2.0: A Disruptive Innovation
by Steven Vannelli of GaveKal Capital,
At the beginning of every major disruptive innovation, fear, uncertainty and doubt reign supreme. Consumers are fearful of the unknown, uncertain of the benefits and doubt the durability of the innovation. But, in the end, fear, uncertainty and doubt give way to confidence, understanding and acceptance. The fund management industry is on the cusp of a major disruptive innovation.
Describing Liquid Alts Common Requirements under the Investment Company Act of 1940
Liquid alternative mutual funds have become a popular investment category, but they are not easily described by a single label. “Liquid alts” tend to exhibit risk, return, and regulatory characteristics unique to particular strategies.
Bob Zenouzi Discusses Delaware’s Dividend Income Fund
by Robert Huebscher,
In this interview, Bob Zenouzi, manager of the Delaware Dividend Income Fund (DDIAX), discusses how he strives to provide investors with a yield that is competitive with fixed income, while achieving a premium yield to equities with better downside protection.
How these 12 TPP Nations Could Forever Change Global Growth
The current members include Canada, the United States, Mexico, Peru, Chile, Japan, Vietnam, Malaysia, Brunei, Singapore, Australia and New Zealand.After nearly seven years of negotiations, the TPP promises to deliver unprecedented free and fair global trade among the 12 participant nations.
The Looming Risk in the Bond Market
by Robert Huebscher,
Lack of bond-market liquidity has been the focus of recent reporting in the financial media. But one of the first to warn about that danger was Michael Aronstein, who said last week that the risks are clearer than ever. Mutual fund investors face the greatest peril.
Does Wells Fargo Add Value for Investors?
by Larry Swedroe,
Assets in actively managed mutual funds have been a consistent source of revenue growth for Wall Street banks. But would investors have been better off in passively managed funds? I’ll answer that question for Wells Fargo and then for the group consisting of the four largest banks.
Recent Volatility Signals a Market in Transition
CEO Chuck Royce and Co-CIO Francis Gannon talk about why they believe the decline for equities in 3Q15 is part of the market transitioning back to more historically typical performance patterns, why a rate hike could be positive for small-caps and stocks as a whole, how history reveals the importance of discipline, the necessity of diversification within the small-cap asset class, and more.
Liquid Alternatives: Considerations for Portfolio Implementation
by Justin Blesy, Ashish Tiwari of PIMCO,
Since the financial crisis, investors have poured nearly half a trillion dollars into liquid alternative strategies – typically mutual funds and ETFs that deploy non-traditional strategies once reserved for large institutional investors.i These vehicles offer the potential for diversification, downside risk mitigation and attractive risk-adjusted returns with the transparency and daily liquidity many investors desire. Liquid alternatives have been a democratizing force for investors, and we believe today’s market environment arguably has only made them more attractive.
Forget “Active vs. Passive”: It’s All About Factors
We just love a good debate, and there seems to be quite a heated debate at the moment about the relative utility of passive versus active investing. Perhaps this debate is as timeless as investment management itself, but a flurry of recent studies may have finally armed passive advocates with enough ammunition to settle the argument once and for all.
Active Versus Passive – Understanding the Debate – Part 3
by Charles Batchelor of Cleary Gull,
Last season, the Green Bay Packers started the season 1-2. Some fans panicked, to put it mildly. Conspiracy theories surfaced for why Green Bay’s quarterback Aaron Rodgers didn’t seem to be playing well and most people formed an opinion on who was to blame. It was at this point, following the team’s second loss, Rodgers found himself being peppered with questions from reporters attempting to figure out what was “wrong” with him and/or the team. Rodgers’ response was, “R…E…L…A…X.”
Results 2,451–2,500
of 3,362 found.
