Posts filed under “Investing”

CalPERS to Hedge Funds: Buh-Bye

This was the big news yesterday out of California:

The California Public Employees’ Retirement System (Calpers) today announced that it will eliminate its hedge fund program, known internally as the Absolute Return Strategies (ARS) program, as part of an ongoing effort to reduce complexity and costs in its investment program.

The staff recommendation, supported by the Investment Committee, will exit 24 hedge funds and six hedge fund-of-funds valued at approximately $4 billion.

Though this move may shock some people, it was one of the most-telegraphed actions that the nation’s biggest pension fund has made. The seeds for this were planted last year, when Calpers moved the authority over hedge funds from its equity desk to its fixed-income group. Bond investors look at the world very differently from equity investors.

The criticism of hedge funds from the equity side of the investing universe typically focuses on performance and fees, to a lesser extent. Charging high fees — hedge funds typically collect fees equal to 2 percent of the assets under management plus 20 percent of any gains — is a pretty big drag on long-term performance. However, a handful of funds have managed to accomplish high returns over long periods of time. That is the promise of alternative investments. The reality is much different, as the industry as a whole and most of its components underperforms the broader market. Not surprisingly, paying high fees for a lack of performance has become a difficult investment practice to defend.

But that is the equity view. From the fixed-income side of things, the focus is on a risk-reward analysis . . .

Continues here

 

 

Category: Hedge Funds, Investing, Really, really bad calls

Coming to D.C. October 15-16th

  Next month, myself and some staffers will be visiting a few clients and prospective clients in the Washington, D.C. area. Many of you are familiar with my investing philosophy, but this is an opportunity to have a more in depth and personal conversation. If you are interested in meeting with us, hearing our views on the…Read More

Category: Asset Allocation, Investing

Vanguard: Has Indexing Gotten Too Big?

Category: Index/ETFs, Investing, Think Tank

Jack Bogle on Diversified Portfolios vs Speculation


9/9/2011 9:25AM

Buying and holding stocks and bonds for the long term and maintaining a diversified portfolio are still the smartest strategies for the average investor, says Vanguard founder Jack Bogle in answer to Mark Cuban and other critics of these traditional approaches. In the Big Interview with Journal columnist Jason Zweig, Bogle takes aim at the culture of market speculation. Betting on long odds, he says, “doesn’t pay off very often.”

Category: ETFs, Investing, Video

1958: Public Investing in the Stock Market as Never Before

This week in 1958: LIFE Magazine highlights a strange new phenomenon: The public is investing in the stock market as never before. “On the average,” reports LIFE, “500,000 new customers a year have been getting into the market and 8.6 million Americans now own some kind of common or preferred stock…. To an extent which…Read More

Category: Investing, Markets, Sentiment

Demand for Financial Advice Isn’t Going Away

The Future of Advice: Business Models and Services For the Next Generations from INResearch

Category: Investing

Howard Marks Explains Risk Assessment & Market Strategy

Howard Marks, chairman of Oaktree Capital Group LLC, talks about assessing market risk, volatility and sentiment. Marks speaks with Stephanie Ruhle and Erik Schatzker on Bloomberg Television’s “Market Makers.”


Source: Bloomberg Sept. 5 2014

Category: Investing, Video

Folly of Forecasters: NFP/Lehman/Goldman Edition

As I sat down to write this early this morning, no one knew what the jobs numbers would be. But I did know three related things: 1. The median forecast in a Bloomberg survey of economists is that 230,000 workers were added in August; 2. Almost all of the individual forecasters will be wrong. (Actually,…Read More

Category: Economy, Employment, Investing, Really, really bad calls

The Value of a College Degree

The Value of a College Degree Jaison R. Abel and Richard Deitz Liberty Street Economics, September 02, 2014     This post is the first in a series of four Liberty Street Economics posts examining the value of a college degree. Not so long ago, people rarely questioned the value of a college degree. A…Read More

Category: Investing, Think Tank

How Much Business Investment Is the Right Amount?

  Andrew Lapthorne, a quantitative strategist at Societe Generale SA, recently looked at the correlation between business investment and individual stock prices, in a report titled “How does too much or too little investment affect a company’s stock price?”. Some of their results were surprising: Stocks of companies that over- or underinvest get punished in…Read More

Category: Corporate Management, Investing