In a recent article on Top1000Funds.com, Anthony Brown of Mercer Investments suggests that “one way to add alpha [especially in the current environment] is through a more opportunistic approach to…
Author: Validea
Hedge Fund Cloning Strategy Shows Massive Outperformance
In his MarketWatch column, Mark Hulbert discusses an investment strategy based on imitating hedge funds, which was developed by Mebane Farber of Cambria Investment Management. Faber argues that “we can…
Larry Swedroe on Emerging Markets, Recency Bias, and When to Buy
Director of Research for the independent investment advisor community BAM Alliance, Larry Swedroe, offers his take on the current underperformance of emerging markets versus U.S. stocks, the importance of recognizing…
Investors Need an Iron Stomach to Hold the Best Performing Stocks
Morgan Housel of The Motley Fool writes a good piece on how difficult it can be buy and hold the very best performing stocks over time. As Housel points out,…
Low Costs and Manager Ownership Attributes of Best Performing Funds
Investment News reports on a study by American Funds that “stud[ied], over multiple time periods, [] the entire Moringstar Inc. fund database” and found that screening for two key attributes…
Funds Holding Less Cash: Why and to What Effect?
In a Wall Street Journal Moneybeat blog post, financial reporter Jason Zweig highlights the decline of cash holdings in funds. He observes that “between 1986 and 1995, stock funds held…
The Long-lived, Rodney Dangerfield Bull Market Gets "No Respect"
A recent piece in Investment News notes that although the current bull market is “one of the longest stock rallies in history,” most investors nonetheless remain “lukewarm” toward stocks. While…
Assets Flying out of Actively Managed Funds
Christine Benz and Russ Kinnel of Morningstar discuss the wave of assets moving out of actively managed funds and into passive index funds. According to Kinnel, of the Morningstar 500…
Top Investment Shop Focuses on Quality First, Value Second
Barron’s profiles Phil Davidson of American Century Investments, a value investor who “focuses on quality first, value second.” He joined the firm in 1993 to begin a value-based approach to…
Indexing Continues to Put the Smackdown on many Active Fund Managers
Bloomberg reports on a recent study by S&P Dow Jones Indices that found most active managers underperformed the relevant S&P benchmarks. Specifically, 66% of large-cap, 57% of mid-cap, and 72%…