Writing in Adviser Perspectives, Larry Swedroe of the BAM Alliance evaluates the performance of the 10 largest (by assets under management) actively managed small-cap funds over the period 2000-15 in…
Buffett on Bubbles: A “This Can’t Go Wrong” Mentality Gets Investors in Trouble
A piece appearing on Yahoo Finance quotes at length from Warren Buffett’s response to the Financial Crisis Inquiry Commission about what caused the housing bubble and related 2008-09 financial crisis.…
Adding Alpha Through Opportunistic Investment
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…
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…