How to Avoid Being “Skewed” in the Stock Market

A small number of stocks deliver the majority of stock market gains according to a phenomenon called “skewness,” writes Validea CEO John Reese in a recent issue of The Globe and Mail. This, he says, “makes life difficult for active managers.” “Out of the thousands of possible stock combinations,” writes Reese, “there is only a small […]

Hulbert Says War Doesn’t Scare the Stock Market

While the stock market doesn’t like war, the uncertainty that precedes a foreign military operation is typically resolved soon after any U.S.-led hostilities begin, and the market responds very positively. This according to Mark Hulbert in a recent Barron’s article. Hulbert cites the countries “saber-rattling directed at North Korea and Syria” as recent examples corresponding […]

Paul Tudor Jones Issues Warning for Fed

The billionaire investor says that “years of low interest rates have bloated stock valuations to a level not seen since 2000,” and the fact that the current market cap-to-GDP ratio is the highest it’s been since 2000 should be “terrifying” to a central banker. This according to a recent Bloomberg article. Jones’ warning echoes that […]

Is It Time for Active Managers to Shine?

“Passive funds tend to attract more inflows after the underlying indexes have performed well, so they’re driven by momentum rather than by analysis of company valuations and fundamentals,” according to a recent article in Barron’s. The article quotes Mike O’Rourke, chief market strategist at Jones Trading, who argues that passive strategies “have a place in […]

Liquidity Concerns Increasing for Fairholme Fund

The Fairholme Fund, which was launched in 1999 by Bruce Berkowitz, has seen investors pull out more than $16 billion over the past six years due to poor performance, an exodus that is raising liquidity concerns. This according to a recent article in The Wall Street Journal. Morningstar estimates show the large-cap value fund has […]

Yale’s Actively Managed Fund Performance Waning

The majority of the Yale University endowment fund is invested with active managers but, if you compare its returns to low-cost active strategies rather than to passive indices, “Yale’s active managers don’t look so special,” writes Bloomberg’s Nir Kaissar. In its recently released 2016 annual report, the article says the esteemed university’s endowment rebutted “fee […]

The Relationship Between Stocks and the U.S. Dollar

While the dollar’s relationship with the economy as a whole is relatively “murky,” the relative performance of U.S. and foreign equities against the dollar is more distinct, writes Ritholtz Wealth Management’s Ben Carlson in a recent Bloomberg article. “When you own shares from other countries around the globe, the diversification benefits come mainly from your […]

FPA Crescent is a Winning Active Fund

“There is no index fund—or other active fund, for that matter—that behaves like Crescent,” writes Morningstar’s John Rekenthaler. The article explains that Crescent’s asset allocation over time contributes to its uniqueness. While on the surface it appears fairly standard–56% equities, 44% bonds—the difference lies in the timing exercised by fund manager Steve Romick. Rekenthaler describes, […]

Bridgewater’s Ray Dalio Offers Advice to the Everyman Investor

Ray Dalio, chairman of the world’s biggest hedge fund (Bridgewater Associates), recently shared his “best advice for the common investor” with Business Insider’s Henry Blodget. According to Dalio, the article says, most investors can’t compete with professionals and institutions that allocate huge sums of money each year in an effort to beat the market. Instead, […]