Piggyback investing has made it so easy for investors to mimic the moves of the best and brightest — and most successful — asset managers. The hardest part is figuring out whose portfolio moves to clone.
Today’s Bloomberg deals with the issue of super star, celebrity fund managers and a recent study into their performance. It [...]
To its credit, the financial industry has been playing around with different pricing structures — and mostly, for good reasons.
4 Ways Financial Advisors Get Paid
To understand where we are in history, here’s a short overview of how financial pros get paid:
1. Brokerage: This transactional model meant brokers got paid when they bought or sold something [...]
As if we needed another study to spell this out, S&P published a recent study (.pdf) that undermines the hot money chasing performance in the mutual fund industry. The study shows that very few funds demonstrate persistence — the ability of asset managers to consistently achieve top-quartile or top-half performance.
The amazing take-away from the study:
Over [...]
Wow! Expectations that U.S. stocks will drop at least 10% has risen to the highest levels since April 1984.
In a recent survey of investment newsletters by Investors Intelligence, Bloomberg reports that:
The following are results from Investors Intelligence’s
analysis of investment newsletters for Jan. 27 through
yesterday. The company determines the proportion of writers who
are bullish and bearish [...]
Long standing conventional wisdom has it that small caps exhibit a “size-effect” — they tend to outperform larger stocks in general over the long term.
MarketSci has done some great work digging in to why this is the case in a recent article. According to the post:
I break from conventional wisdom on the subject of the [...]
December has been an action-packed month for kaChing, one of my favorite asset management startups and a solid member of the New Rules of Investing. The hot startup scored another round of funding, further lending support to their model’s success. The small tech firm essentially incubates fledgling asset managers through stock picking games, allowing users [...]
Don Narcisse was the Warren Buffett of Canadian Football. His performance numbers over a long career speak for themselves. A small receiver (5′9″), Narcisse began his career in the CFL with the Saskatchewan Roughriders in 1987 after being cut from the St Louis Cardinals. The rest was history.
Here are some of his stats after a [...]
The competition for assets in brokerage and investment advisory hasn’t been lost on prime brokers. In New Kids on the Prime-Brokerage Block on the WSJ, reporter Jenny Strasburg does a good job describing how new players in prime brokerage are challenging the old guard.
Strasburg specifically cites 4 newish entrants into the prime-brokerage pool:
Cantor Fitzgerald
FBR
Jefferies and [...]
I’ve come to the conclusion that investors are insane.
Given who you are, you may have one of two responses to that statement of fact:
you agree
you say, “huh?”
If you find yourself agreeing that investors are insane, I’m preaching to the choir. If you don’t understand what I mean by that statement, be patient. I’ll explain.
I’m in [...]
