“Quantimental” Fund Management Raises Eyebrows

It seems that name-melding has extended beyond the ranks of celebrities (think Brangelina and TomKat) to the world of fund management. An article in this month’s Pensions & Investments explains how, in the face of disappointing performance, hedge fund managers are integrating quantitative strategies into their fundamental approaches in an effort to improve results. Lin […]

Billionaire Advice Might Not Fit the Bill for All

Another round of advice on sticking to an investment plan might sound like our needle is stuck, but this time we’re coming at it from a slightly different angle. Bloomberg View columnist Barry Ritholtz shares perspective on comments made earlier this month by Convergex chief strategist Nick Colas. The gist of Colas’ view was that […]

GMO: Don’t Bail on Hedge Funds

The fall in rates since the financial crisis has benefited stocks and other long-duration assets while hurting short-duration assets such as hedge funds, says GMO’s Ben Inker. “The characteristics that made hedge funds disappoint,” he says, “may well prove a blessing if discount rates start to rise.” Inker argues that today’s high returns and advanced […]

Passive Investors Should Avoid these Three Mistakes

While data supports the widespread belief that passive (or index)¬†and ETF investing offer consistently competitive returns, a recent article in Money magazine advises investors to avoid three common mistakes when choosing this route: Assuming all index funds are cheap: Index funds are generally able to charge lower fees since they simply buy the stocks or […]

Morningstar’s Ben Johnson on Multifactor ETFs

Factor investing is to portfolio construction what macronutrients are to the diet, and diversifying a portfolio to include various factors is as important as doing so with asset classes in a traditional, market-cap weighted portfolio. This is the upshot of a recent Morningstar interview with Ben Johnson, the firm’s director of global exchange-traded fund research. […]

Is Smart-Beta Investing Smart?

Smart-beta investing is getting a lot of attention and Chris Brightman, chief investment officer of Research Affiliates, has covered a lot of ground in this territory. However, while this investment methodology has been gaining popularity, Research Affiliates is warning investors that a crash may be coming. In a recent interview with Barron’s, Brightman shares his […]

John Neff: Bargain Hunter

Unloved but promising stocks were just the ticket for Investment guru John Neff. While managing the Windsor Fund for more than 30 years, his conservative approach earned an average 13.7% annual return and beat the market by an average of 3.1% per year. In his article for TheStreet.com this week, ¬†Validea CEO John Reese describes […]