“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…
Author: Validea
Active Management Versus Passive Investing: How to Choose
Active management fees, coupled with periods of underperformance, have made low-cost index investing attractive for investors, writes Validea CEO John Reese in a recent article for The Globe and Mail.…
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…
Stock Picks for the Level-Headed Investor
When buying stocks, it is essential for investors to value process over outcome, says guru James O’Shaughnessy during a recent speaking engagement. This according to a recent Nasdaq article by…
Stock-Pickers Have Underperformed Benchmarks for the Past 15 Years
According to the latest S&P Indices Versus Active funds scorecard, over the last 15 years (ended December 2016) 82% of all U.S. funds were unable to beat their benchmarks, according…
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…
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…
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…
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…
The Permanent Portfolio’s Choppy Growth History
In 1982, the late Harry Brown (investment adviser and Libertarian presidential candidate in 1996 and 2000) helped create a conservative mutual fund intended to shelter investors during downturns, with a…