Helping you make wiser investment decisions

General

Private Equity: The Emperor Has No Clothes

From Bust to Boom The private equity industry had an abysmal outlook in 2008 and many portfolio companies were at the brink of collapse. Carlyle Capital, a listed affiliate of the US buyout giant The Carlyle Group, defaulted on its debt. Fast-forward to 2018 and such global financial crisis–related difficulties seem almost forgotten and private […]

What Millennials Want: Not What You Think

Everyone thinks they have millennials figured out. But a new report suggests we don’t know what we think we know about this critical demographic, especially when it comes to investing. And that’s a big deal for finance professionals. Think about it: Millennials are poised to inherit about $30 trillion in the next 30 years. If […]

Reading Around: The Latticework Framework

Twenty years ago, stock markets were also in turmoil. Back then it was the Asian flu and the Russian sovereign debt crisis that triggered a pretty sharp correction in global stock markets and led to the demise of Long-Term Capital Management (LTCM). Founded by John Meriwether, the hedge fund included Nobel Prize–winning economists like Myron […]

Investing in Asia: Grasping Corporate Governance Nuances Is Key

The CFA Institute Equity Research and Valuation Conference is an annual event covering global investing strategies and valuation approaches and analysis. The Equity Research and Valuation 2019 Conference, hosted by CFA Institute and CFA Society New York, will be held 14–15 November in New York City. What do swimming scallops have to do with investing […]

An Unconstrained Approach to Global Bond Investing

The CFA Institute Fixed-Income Management Conference is an annual event focused on global debt markets, fixed-income sectors, security selection, and portfolio construction. The Fixed-Income Management 2019 Conference will bring together researchers, analysts, portfolio managers, and top strategists in Boston, Massachusetts, on 17–18 October. Marilyn Watson, managing director and head of global fundamental bond product strategy […]

BlackRock’s Kate Moore: Opportunities in Equities

The CFA Institute Equity Research and Valuation Conference is an annual event covering global investing strategies and valuation approaches and analysis. The Equity Research and Valuation 2019 Conference, hosted by CFA Institute and CFA Society New York, will be held 14–15 November in New York City. BlackRock’s chief equity strategist Kate Moore finds a lot of things […]

Discretionary Investing in the Age of Artificial Intelligence

To a quantitative investor, discretionary investing is ridiculously subjective — rife with confirmation bias, availability bias, base-rate ignorance, and more. To the discretionary investor, on the other hand, quantitative investing is hopelessly naive. A company is more than its price to book and return on capital employed. The worlds of these two investors are like East […]

Persistence That Just Ain’t So

Do private equity presentations overstate an ability to persist? “It ain’t what you don’t know that gets you into trouble, it is what you know for sure that just ain’t so.” The famous Mark Twain line, correct? Actually, no. According to Respectfully Quoted, Twain saying this “just ain’t so.” As Forbes and others have reported, the phrase originated with Josh […]

Bitcoin: New Asset Class or Pyramid Scheme?

Merriam-Webster defines a pyramid scheme as “a usually illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants.” The former general counsel of the Federal Trade Commission (FTC), Debra A. Valentine, said the following: “Pyramid schemes now come in so many forms that they may be difficult to […]

The Power of Passive | CFA Institute Enterprising Investor

Explanations for the mass exodus from active to passive funds have included low stock dispersion and a long bull market. But William F. Sharpe’s fundamental arithmetic makes no assumptions about correlation or the direction of the market. Because the flood into passive management appears unstoppable, it is worth considering the limits of the trend. In “Active […]

Buyer Beware vs. Seller Beware

Consumers need a range of financial products to help them manage cash flows and risks throughout their lives. They use money to exchange goods and services. They borrow, they save, they invest, they live in retirement, and they pass on their wealth to their heirs. The finance industry provides tools and services to help people […]

Smart Beta: How to Avoid Fixed Income’s “Crocodile Jaws”

Interest rates, as measured by the three-month Treasury yield, are the highest they have been in 10 years and trending higher. Fixed-income investors are facing a conundrum. Some would call it crocodile jaws. On top, the higher rate from the US Federal Reserve is slamming down on the value of bond portfolios. On the bottom, […]