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 […]

Stock-Pickers Beware: Bots Are Here

BlackRock’s March announcement that the firm had reduced its staff of stock pickers to increase its focus on quant strategies may support the consensus that “active management is dying,” but Bloomberg columnist Nir Kaissar argues that “the problem is not that active managers fail to outperform the market; it’s that they keep that outperformance for […]

Harvard Endowment Goes Back to Basics

Last year, Harvard University allocated 14 percent of its $35.7 billion endowment fund to hedge fund strategies, but managed these internally rather than through outside managers. This according to a recent Bloomberg article by Nir Kaissar. The article explains that this departure from the traditional endowment model (used by peers such as Yale and Columbia […]

Bloomberg’s Kaissar on Dow Milestone

Before the fanfare of the Dow Jones Industrial Average hitting 20,000 (which occurred on January 25th), Bloomberg columnist Nir Kaissar asserts, “it’s not clear whether that milestone will be cause for celebration or concern.” The index stands at 20,093 today. Kaissar speculates that when the Dow first hit 100 (in 1906), “investors were drunk with […]

The Elite Edge in Market Performance

Elite university endowments, such as those of Harvard and Yale universities, have been the envy of many for years, writes Bloomberg’s Nir Kaissar. But things have changed. Notwithstanding the “countless resources and connections and clever analysts,” he writes, those endowments have not performed much better than a traditional 60/40 portfolio of U.S. stocks and bonds. […]

Emerging Markets Are Making a Comeback

As the S&P 500 continues to hold investors’ attention with its steady climb, BloombergGadfly’s Nir Kaissar shares his perspective on how and why emerging markets might deserve some attention. Kaissar points out that emerging market stocks have recently outperformed the S&P 500, a sharp reversal from recent years. The MSCI Emerging Markets Index is up […]

The S&P 500: Read the Fine Print

If you’re making an argument for passive investing, you’d probably point out that it’s less expensive, it’s tax efficient, and has paid off over long periods of time. In a recent Bloomberg article, columnist Nir Kaissar describes the S&P 500 (the first index fund) as the “poster child” for passive investing, having returned 11.6% annually […]