Posts filed under “Mutual Funds”
Jonathan Berk turns the efficient market hypothesis, which popularized the belief that mutual fund managers were “monkey investors” who consistently perform worse than the overall market, on its head to prove that mutual fund managers are in fact highly skilled investors. And he proposes a new way to accurately measure a mutual fund manager’s level of skill. Berk is the A.P Giannini professor of finance at Stanford Graduate School of Business.
Jonathan Berk: Are Mutual Fund Managers Skilled?
I wanted to spend a bit of time on the Labor Department’s proposal to place a fiduciary obligation on those who manage or provide investment advice on retirement plans. These include individual retirement accounts and 401(k)s (including 403(b)s). The new rules require the broker or adviser to “operate in the best interest of the client.” I don’t…Read More
Last year was a time of change and controversy for Bill Gross: His unplanned exit from Pacific Investment Management Co. in September, a whisper campaign before the palace coup, a new job at Janus Capital. Amid all this, Gross is most upset about one thing: Despite 40 years at the top of the fixed-income world,…Read More
Wow: 10 things mutual fund companies won’t say 1. “Cheap funds often outperform pricey ones.” 2. “We can’t beat the market.” 3. “When skill fails, we just double (or quintuple) our odds.” 4. “People aren’t buying our product…” 5. “…except when we pay them kickbacks.” 6. “Hedge funds are our idols.” 7. “Our boards are…Read More
Category: Mutual Funds
Of all the outrages endured during the financial crisis, perhaps the most perplexing involved money-market mutual funds. In an example of moral hazard writ large, this uninsured risk instrument — with $2.57 trillion in assets — somehow became too big to fail. Five years later, the Securities and Exchange Commission is finally taking steps to…Read More
The Worst Investing Ideas I’ve Heard This Year (so far) Barry Ritholtz Washington Post, July 5, 2014 As the second quarter comes to an end, my top 10 list of dumb investment ideas is filling up. All of these would be fairly foolish in any year. (Feel free to explain to me why…Read More
This was written by Kris Venne, the Certified Financial Planner in our Asset Management group: Its 3:35pm on a Wed., your phone rings – it is your “advisor” over at MerFargonley. Conspicuously its pretty close to month end, say March 24th. “Hey Mike! Hows it going? How’s Sandy (your wife)? How about little Mikey?”…Read More