Mauboussin Offers Insights on Active Management

A recent Forbes article offers comments and insights gathered in a recent interview with Michael Mauboussin, Director of Research at BlueMountain Capital Management (formerly Head of Global Financial Strategies at Credit Suisse): Mauboussin underscores two risks inherent in value investing: (1) buying a cheap stock that “deserves to be even cheaper”—a value trap; or (2) “shunning a statistically expensive stock that represents a good value.” While indexing is a reasonable path for most investors, it… Read More

The Age of FOMO Investing

The current market environment poses a “big psychological quandary,” according to a recent article in Bloomberg. Contrary to what many might think, it argues, long bull markets are not the easiest times for money managers. “The truth is,” is says, “smart investors don’t trade to maximize expected value; they trade to minimize regret. There is nothing worse than ‘buying high’ and then watching the market trade lower. You feel shame because you know you’re the patsy.”… Read More