Posts filed under “Investing”

Reform of NYC Pension May Follow CALPER’s Script

People seem to be genuinely shocked by a new report out of New York City’s Comptrollers Office. The report found that the city’s public employee retirement fund pays big fees to Wall Street but gets little in return.

However much anyone is shocked, they really shouldn’t be. That’s because the high cost of hiring outside money managers to oversee the city’s retirement assets was entirely predictable. As Bloomberg reported in 2013, New York City is “the only one of the 11 biggest U.S. public-worker pensions that refuses to manage any assets internally.” That alone suggests that the city is paying disproportionately high fees compared with pensions that manage some or all of their funds in-house.

The highest cost investments the city has are its $9.72 billion in private equity and $3.34 billion in hedge funds. The $160 billion retirement system pays fees of more than $360 million a year to outside money managers. That’s a big deal.

But a big surprise? Not even close.

 

Continues here: Hey New York, Check Out Calpers

Category: Hedge Funds, Investing, Venture Capital

Average Returns Are Exceedingly Rare

One of the most fascinating things about markets is the sheer volume of data they generate. Every day, millions of data points get created. The vast majority of this amounts to little more than noise. This endless stream of information leads thousands of us everyday on a hunt for meaningful signal amid the cacophony. Most of the time, we…Read More

Category: Cognitive Foibles, Investing, Markets

High Number of Zero-Savers

47% of households have a 0% personal savings rate, see chart below. Source: Torsten Sløk, Ph.D., Deutsche Bank Securities

Category: Consumer Spending, Investing, Really, really bad calls, Wages & Income

Winners and Loser of the Global Financial Markets

Source: BAML via Bloomberg

Category: Investing, Markets

Mesa Culpa: My 2014 Mistakes

Ritholtz: Admitting my 2014 mistakes Barry Ritholtz Washington Post, March 22, 2015   .   “Pain + Reflection  = Progress.” — Ray Dalio, founder of Bridgewater Associates 2014 is behind us, and before the first quarter sneaks by, I am obligated to offer my annual admissions of error. One of my biggest peeves about finance is…Read More

Category: Apprenticed Investor, Investing

10 Things About Living Longer in Retirement

Source: BlackRock

Category: Asset Allocation, Digital Media, Investing

RWM Coming to San Francisco and Silicon Valley in May!

The week of May 4-8th, we will be in San Francisco and Silicon Valley meeting with clients, presenting to a few tech firms, and generally enjoying the Bay area. To those of you who may be familiar with our investing philosophy but want to learn how we actually manage assets, please contact us. This visit presents an opportunity to have a…Read More

Category: Asset Allocation, Investing

What March Madness Can Teach US About Investing & Trading

We are down to the Sweet 16 in the NCAA’s men’s college basketball tournament, otherwise known as March Madness, which depending upon your perspective is either the most exciting month in sports or the American collegiate plantation system writ large. As is my wont, I seek out lessons in what I see, hunting for parallels in sports, politics, et…Read More

Category: Apprenticed Investor, Cognitive Foibles, Investing

Hierarchy of Investment Skill

Source: Chief Investment Officer

Category: Digital Media, Investing

My Mea Culpas from 2014

    > My Sunday Washington Post Business Section column is out. Its time for my annual mea culpas from last year. I like what the editors did with the print version headline: As neither of us is infallible, here are my mea culpas from 2014. Here’s an excerpt from the column:  I have been performing…Read More

Category: Apprenticed Investor, Investing