Posts filed under “Asset Allocation”

The Amazing Disconnect Between Hedge Fund Performance & AUM

Earlier this week, Greg Zuckerman of the Wall Street Journal pointed out one of the great mysteries of today’s investment landscape: Despite underperforming by a substantial margin, hedge funds keep attracting more investors and assets under management. It is almost as if (to borrow the headline on Zuckerman’s article), “Hedge Funds Keep Winning Despite Losing.”  He wrote:

Hedge funds aren’t just underperforming against the S&P 500 and other stock indexes. They’re also losing out to low-cost “balanced” mutual funds that hold a mix of stocks and more-conservative investments, just like many hedge funds, suggesting their poor performance can’t be blamed on a hedged approach.

Consider the data: According to HFR, a firm that created indexes to track hedge-fund performance, the average hedge fund gained a mere 3 percent in 2014 versus an 11 percent rise in the Standard & Poor’s 500 Index. That’s hardly worth paying a hedge fund outsized 2 percent management fees plus a 20 percent cut of the profits.

Continues here

 

Category: Asset Allocation, Bad Math, Hedge Funds, Investing, Psychology

John Bogle’s Investing Genius Needs An Update

Now before I commit blasphemy, a few words: I am as close to being a Boglehead as you will find, without actually being one. The bulk of my portfolio is in passive indexes. Most of the assets I manage are in a broad allocation model. This is a tribute to the wisdom and teachings of investing…Read More

Category: Apprenticed Investor, Asset Allocation, ETFs, Investing

Asset Class Returns vs. “The Average Investor”

This chart tells us three things: 1) People are obviously doing something wrong very wrong with their investment dollars; 2) Attempts at generating Alpha end up costing most investors their Beta; 3) Irrationality, emotions, and cognitive errors are the underlying cause of this poor performance.   Source: ValueWalk

Category: Asset Allocation, Investing

“I come not to praise forecasters but to bury them.”

>   My Sunday Washington Post Business Section column is out. This morning, we look at why It’s time to market forecasters to admit the errors of their ways. It is yet another look at the parade of really bad forecasts we get treated to constantly in the world of investing and finance. Here’s an excerpt…Read More

Category: Apprenticed Investor, Asset Allocation, Investing, Really, really bad calls

Last Slot Left for Seattle

Wow, that was quick! We have one or two slots left to meet with folks in Seattle during the week of January 20th (I am coming into town to interview Howard Marks at the CFA dinner). For those of you who are familiar with my investing philosophy, this is an opportunity for a more in…Read More

Category: Asset Allocation, Investing

Coming to Seattle !

  The week of January 20th, I will be in Seattle to interview Howard Marks at the CFA dinner. I will also be visiting a few clients and prospective clients in the area as well. Many of you are familiar with my investing philosophy, but this is an opportunity to have a more in depth and personal…Read More

Category: Asset Allocation, Investing

What is an Online Financial Advisor?

I thought this infographic was inforamtive. We launched our own online advisor last year called Liftoff:   Source: Paladin Research & Registry

Category: Asset Allocation, Digital Media, ETFs, Investing, Technology

The Basic Simple Truths of Investing

For investors, it’s a perfect time to go back to the basics Barry Ritholtz Washington Post, December 21, 2014     Look around you: This is the time of year when the pages of newspapers and magazines are filled with predictions and lists and all manner of money-losing nonsense. I have pushed back against much…Read More

Category: Apprenticed Investor, Asset Allocation, Cognitive Foibles, Investing

Back to Basics

>   My Sunday Washington Post Business Section column is out. This morning, we look at a few basics of investing that many investors get wrong. Here’s an excerpt from the column: “Today, I am going to suggest you take a different route: Focus on 10 basic, simple truths that many investors seemingly ignore. Some…Read More

Category: Apprenticed Investor, Asset Allocation, Investing

$100,000 Says My Portfolio Will Beat Tony Robbins’

Motivational speaker Anthony Robbins has a new book on investing, “Money: Master the Game.” It is his first book in two decades, and he has been everywhere, flogging it directly onto the best-seller list. The good news is that the book contains snippets of conversations with some of the world’s greatest investors. The bad news…Read More

Category: Apprenticed Investor, Asset Allocation