Hedge Funds Had a Good Year, Just Not Good Enough And yet an industry with high fees and ho-hum performance continues to thrive. Bloomberg, January 12, 2018 Attention hedge-fund investors: I have some good news for you. I also have some not so good news. The good news is that 2017 saw… Read More The post Good News / Bad News for Hedge-Fund Investors appeared first on The Big Picture.
With all apologies to Danny Kahenmann for that title, I am genuinely surprised by the pushback to podcast, columns, even tweets that even mention Donald Trump in passing. Perhaps I shouldn’t be. I should not expect partisans to read past the headline. The fast twitch response by definition is an emotional, not contemplative rational reaction. I… Read More The post Tribal Fast Responses and Considered Slow Ones appeared first on The Big Picture.
Stocks Are Pricey? It Depends The real question is: Relative to what? Bloomberg, January 5, 2018 How cheap or expensive are stocks? This is one of the more interesting investing debates, and a very confusing question for institutions and individuals alike. It often leads to fear, paralysis or bad decision-making, or some… Read More The post How Much Should Fair Value Matter to Investors? appeared first on The Big Picture.
I am very jazzed about an upcoming conference, the annual Inside ETFs Conference held in Hollywood, Florida. Billed as the “world’s #1 ETFs event,” it has more than 2500 attendees from over 50 countries. There is the usual who’s who list of investing royalty (Tim Buckley, Vanguard, Mohamed El-Erian, PIMCO, Jeffrey Sherman, DoubleLine Capital,… Read More The post Annual Inside ETFs Conference January 21st appeared first on The Big Picture.
Very interesting article in the WSJ about Vanguard’s new CEO, Tim Buckley: Vanguard’s new chief executive has a challenge his three predecessors didn’t: How to how to grow a firm that is already the world’s second largest investment manager. When Tim Buckley started at Vanguard in 1991, the firm managed $77 billion and attracted $15 billion… Read More The post How to Keep a Behemoth Growing . . . appeared first on The Big Picture.
This week I sat down with Ric Edelman, founder, chairman and chief executive officer of Edelman Financial Services LLC, magaging $21 billion in assets. Edelman also serves as a director of the Wolftrap Foundation for the Performing Arts. He was ranked the nation’s No. 1 independent financial adviser three times by Barron’s and named one… Read More The post MiB: Ric Edleman appeared first on The Big Picture.
Source: NYTimes Fascinating pair of charts from NYT showing the impact of inflation on relative market cap. Look at the inflation adjusted differences between Cisco (#4 inflation adjusted vs #7 not adjusted ), JPM Chase (19 vs 12), AT&T new (not on list versus 19), Wells fargo (not on list versus 15) and Lucent (16… Read More The post Effects of Inflation on Market Capitalization appeared first on The Big Picture.
A Hedge Fund Giant Found Lots of Value in Failure The world’s biggest hedge fund springs from the wreckage of his monumental error. Bloomberg, December 11, 2017 By any conceivable measure, Ray Dalio, head of Bridgewater Associates LP, is a wild success. The founder of the world’s largest hedge fund with $160… Read More The post Ray Dalio on The Fine Art of Failure appeared first on The Big Picture.
Earlier this year, I posed the question What is Your Value Proposition? One of the key aspects of that top 10 list reflected my beliefs about communication: 2. Communication / Understanding: Investment-related noise can derail even the most disciplined investor. We help clients screen out that noise through a program of client-only communications that focuses on process over outcomes. Each… Read More The post What Makes Any Money Manager Unique? appeared first on The Big Picture.
Source: Schwab Thought provoking discussion on valuations from Jeff Kleintop at Schwab: • Although world stock market valuations are above average, similar valuations have produced double-digit gains over the following 12 months during the past 50 years. • Relative valuations do not currently favor one country or region’s stock market over another. • Valuations… Read More The post How Expensive Are Stocks? appeared first on The Big Picture.
Vanguard Begins Updating Its Investing Philosophy Founder Jack Bogle isn’t crazy about smart-beta and factor-based products, but the firm will offer them anyway. Bloomberg, December 4, 2017 As if it hasn’t done enough this year, Vanguard Inc. is shaking up the world of factor investing and smart beta by introducing six new exchange-traded funds and one mutual… Read More The post The Philosophical Evolution of Vanguard appeared first on The Big Picture.
I have been thinking a lot about Vanguard’s push into factor investing1 and smart beta. I expect them to follow a path similar to how they approached moving into the robo-advisor space. Meaning, expect to see internal organic building rather than acquisition. Vanguard already has several funds in the factor and/or smart beta space. They are… Read More The post Vanguard Effect for Smart Beta? appeared first on The Big Picture.
Source: Federal Reserve Bank of St. Louis Via FRED: The data show a large variation in stock market participation rates across the United States. The disparities are sizable, with rates ranging from 10.5 percent in Mississippi to 26.6 percent in Connecticut. This seems reasonable, as the average household income is higher in Connecticut than… Read More The post Household Participation in Stock Market Varies Widely by State appeared first on The Big Picture.
In Search of Market Signals in the $450 Million Da Vinci Price contains information, but how much does an outlier art sale say about stocks or the economy? Bloomberg, November 20, 2017 Economist Friedrich Hayek wrote that “price contains information.” So what information is contained in the almost a half billion-dollar price for a painting?… Read More The post What Does a $450M DaVinci Tell Us About Markets? appeared first on The Big Picture.
This was a very interesting experience: 4 of us, plus the folks at Barron’s, spent a couple of hours discussing the rise of ETFs, and what they mean for people’s personal portfolios. The rest of the roundtable included Ben Fulton, CEO of Elkhorn Capital Group; Corey Hoffstein, co-founder of Newfound Research; Dave Nadig, CEO of… Read More The post Barron’s ETF Roundtable appeared first on The Big Picture.
This is the keynote session of the Stephen C. Freidheim Symposium on Global Economics. This symposium focuses on the future of investment management in a world of low returns, the financial pressures felt by universities, states, and individuals around the world, and methods for adjusting to low returns on investments. Speaker: David Swensen, Chief Investment… Read More The post CFR: A Conversation with David Swensen appeared first on The Big Picture.