Posts filed under “Hedge Funds”

RWM Announces Institutional Asset Management

Two years ago, we launched RWM. Our mission was to provide high quality wealth planning and asset management to our clients, be a force for teaching the public the right way to invest, and point out the shortcomings of our industry. The cost structure, the excess activity, the reliance on complexity and a misleading sales pitch – all of these came under our criticism.

Most of what we were doing was geared towards the individual, but on occasion I write towards an institutional audience. Many of the cognitive errors and investing mistakes we see amongst individuals are also present at an institutional level, who after all, are individuals working within a larger organization.

Over the course of many discussions, we looked at Chasing Alpha, recognizing the value of Beta, the focus on reducing costs, or not becoming caught up in unrealistic expected returns, and of course a slew of issues regarding hedge funds (here, here, and here)  are all issues we have discussed in great detail. Many of these are more institutional than individual concerns.

We were thinking about ways to express our investing philosophy to an institutional audience, and we think we came up with a brilliant way to do that. Today we announced that Ben Carlson is joining the firm as Director of Institutional Asset Management.

You might know of Ben’s work from his perfectly named blog, A Wealth of Common Sense, or his book of the same title. But we know him from his very smart, very practical approach to helping institutions manage their monies.

When we first started speaking with Ben, it was clear that philosophically, we could not be more in sync. As an example, here is what Ben wrote today describing his approach:

  • There are tons of small and mid-sized institutional funds — foundations, endowments, pension funds, etc. — out there that are being mis-managed. They’re getting poor, and often conflicted, advice. They’re investing in things they don’t understand. The fees they’re paying are too high. Most haven’t established any legitimate guidelines or investment policy statements. And most importantly, their portfolios and investment plans aren’t taking into account each organization’s specific mission. Many consultants and advisors are more concerned with creating clever portfolios than paying attention to an institution’s goals.
  • Early on in my career I worked with a consulting firm that helped smaller and mid-sized institutions create investment plans and goals-based portfolios. This is always something that I’ve wanted to do on my own because I think it’s a space that could use a fresh look.
  • I’ve always worked on the institutional side of the business, but I’ve received a number of requests from readers over the past couple of years to help them invest their portfolios. Since starting this blog I’ve become more and more interested in helping individuals reach their financial goals.

We are taking all of Ben’s past experiences. and creating a format to allow him to deliver exactly the sort of investment advice, management and guidance that he has so eloquently discussed on Wealth of Common Sense.

I am confident that Ben is going to be a tremendous addition to our team. We will be working closely on many of the institutional offices who have reached out to us since we launched RWM in 2013. We are tremendously excited about this new development. Once again, I could not be prouder of our team for bringing this all together so well.

Welcome to the firm, Ben!





Ben Carlson Joins Ritholtz Wealth as Director of Institutional Asset Management (PR Newswire)

My Next Step  (Wealth of Common Sense)

Ben Carlson joins Ritholtz Wealth Management (The Irrelevant Investor)

Ben Carlson joins Ritholtz Wealth Management (TRB)


Category: Asset Allocation, Hedge Funds, Mutual Funds

What Happens When A Star Fund Manager Leave?

How the mighty have fallen. Earlier this month, the once towering Total Return Fund of Pacific Investment Management Co. hit a milestone. Mary Childs of Bloomberg News observed that Pimco’s “flagship fund fell below $100 billion in assets for the first time in more than eight years, leaving it with about a third of the money it…Read More

Category: Corporate Management, Fixed Income/Interest Rates, Hedge Funds, Mutual Funds

Ray Dalio’s Interview at Bloomberg

Fascinating interview with Ray Dalio of Bridgewater yesterday by Tom Keene and Mike McKee, The full run of videos are here, but a few select excerpts are below:


China Is Going to Be Just Fine, But Weaker


More videos after the jump

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Category: Economy, Hedge Funds, Investing, Television, Video

Questions for California Teachers to Ask CALSTRS

From the “Here We Go Again” files: Yet another big pension fund has decided, despite the overwhelming evidence to the contrary, to engage in higher-risk, higher-cost investing. One day, this might end well, but history is replete with an almost-unbroken string of examples where it hasn’t. You might have missed the Wall Street Journal article during the…Read More

Category: Asset Allocation, Hedge Funds, Pension Funds, Really, really bad calls

Jim Simons: The Mathematician Who Cracked Wall Street

Jim Simons was a mathematician and cryptographer who realized: the complex math he used to break codes could help explain patterns in the world of finance. Billions later, he’s working to support the next generation of math teachers and scholars. TED’s Chris Anderson sits down with Simons to talk about his extraordinary life in numbers.

Category: Hedge Funds, Mathematics, Video

Performance Guaranteed or Your Money Back

Source: WSJ

Category: Hedge Funds

The University Endowment Sweet Sixteen Bracket

Via Chief Investment Officer, we see this amusing comparison of major university endowments. I am not sure how the winners are determined, other than where a small subset of asset managers would like to one day work. Based on the recent performance data I have seen, there seem to be lots of under-performers. Well, at…Read More

Category: Asset Allocation, Hedge Funds, Investing, Venture Capital

Top 25 Ranking of Alternative Asset Managers

Source: Chief Investment Officer

Category: Digital Media, Hedge Funds, Markets

Last August, we called out the San Diego County retirement fund for paying way too much in fees to Salient Partners, its outside pension-fund manager. Based on reporting by Dan McSwain, the San Diego Union-Tribune alerted readers to a dramatic increase in the use of leverage once Salient took the reins. On July 16, the county fired Houston-based Salient, according…Read More

Category: Asset Allocation, Hedge Funds, Really, really bad calls

The Wit, Wisdom, and Unapologetic Vitriol of Carl Icahn

click through for full article Source: Bloomberg

Category: Hedge Funds, Humor