Value Investors Must Accept Stretches of Underperformance

Even though value investors have seen lackluster performance over the past ten years, panelists at a last month’s Morningstar Investment Conference argue this isn’t an indication that this approach is “dead.” This according to an article in Financial Advisor. AQR’s Ronen Israel commented that a value strategy is good over the long term, but an […]

“Superstocks” Like Amazon are Hard to Find

Scoring a winning stock such as Amazon is exceedingly hard to do, writes Jason Zweig in a recent Wall Street Journal article. While it might not be useless to try, Zweig argues, “many investors are going about it the wrong way.” Zweig explains that, from 1926 through 2015, Amazon was one of the mere 30 […]

Quant Strategies Are Not Magic

 The flow of funds into the quant investment strategies continues but, like most new ideas, this one doesn’t come without caveats, writes Validea CEO John Reese in a recent Forbes article. Reese argues how quant strategies shouldn’t be considered a magic bullet, but rather a tool to thwart an emotional approach to investing. He underscores […]

Harvard’s Biggest Holding is ETF

This past January, Harvard Management’s chief executive officer  N.P. “Narv” Narvekar announced plans to overhaul its $35.7 billion endowment to boost performance, according to a recent Bloomberg article. And, according to the endowment’s first-quarter filing, its largest publicly traded holding is a high-yield bond ETF, the article says. In the filing, Harvard Management Company disclosed […]

Learning from Buffett and IBM

Warren Buffett’s announcement prior to this year’s Berkshire Hathaway annual meeting to sell a third of the firm’s IBM shares spurred a host of headlines, writes Validea CEO John Reese in a recent article for Nasdaq. In the article, Reese explains that while Buffett is known for his penchant to buy and hold, the article […]

Fundamental-Based Investing and Five Stock Picks

In a recent Forbes article, Validea CEO John Reese outlined the investments commandments of sixteenth-century billionaire Jakob Fugger and drew similarities with the present-day tenets of Warren Buffett: Invest when others fear: Similar to Buffett’s penchant for buying when there is “blood on the street and value in the market,” writes Reese. Be indispensable: Reese […]

Investment Opportunities in Europe

European equities are back in favor with Investors, who pulled approximately $100 billion from the asset class in 2016, writes Validea CEO John Reese in a recent article for Nasdaq. The article explains that below average performance in oversea stocks over time has led to a big difference in valuations compared to the U.S. market, presenting […]

Fool’s Gardner on Active Versus Passive Investing

In a recent interview with WealthTrack’s Consuelo Mack, Motley Fool’s Tom Gardner shares insights regarding active versus passive investing and where he sees market opportunities. Tom Gardner, who’s mission through his Motley Fool multi-media network of financial services is to “help the world invest better.” He asserts his belief that index investing is the best […]

Columbia’s Bruce Greenwald on Value Investing

When Columbia professor Bruce Greenwald first arrived at the university, value investing wasn’t terribly popular, but he was convinced it was a much better approach. This according to a recent interview with Barron’s. Here are some highlights from the interview: “Specialization is an old and honorable Graham and Dodd tradition.” Greenwald references successful value investor Mario […]

Gundlach Says Go Long Emerging Markets

Despite conventional wisdom that says rising U.S. rates will strengthen the dollar, Doubleline Capital chief investment officer Jeffrey Gundlach recommends going short on the S&P 500 and long on emerging market stocks, according to a recent Bloomberg article. At the Sohn Investment Conference earlier this month, Gundlach quipped, “What the heck, let’s have some fun.” In […]

Rob Arnott Says U.S. Stock Valuations Are a Worry

Rob Arnott, founder and CEO of Research Affiliates, says investors should “avoid U.S. stocks and buy emerging market equities to outperform in the coming years,” according to a recent CNBC interview. Arnott was a pioneer in developing indexing strategies that weight portfolio holdings according to valuation measures rather than market capitalization (a strategy typically used […]