…better: The article warns investors that more funds don’t necessarily increase diversification: “Combining funds that have similar holdings will give you little or no diversification benefit.” Asset class: Diversification across…
Search Results for: low-volatility funds
Seth Klarman Defends Value Investing
…“As funds continue to flow into the hands of indexers, stocks not included in prominent indices relentlessly lag, while the beneficiaries of such inflows move more or less in tandem,…
Why Rebalancing is Important
…endured higher volatility due to heavy equity weighting, “making the return advantage not worth the risk.” While frequent rebalancing may be “an unrealistic expectation for do-it-yourself investors,” the article argues…
The Hot “Quant” Industry is Suffering a Winter
…the Financial Times. The article reports that, according to Nomura, just 15 percent of quant mutual funds beat the US stock market last year, “a performance that trailed even behind…
Is Private Equity Fooling Investors?
…their low volatility “must be artificial, the product of smoothed valuations. Private equity portfolio companies are influenced by the economic tides just as much as public companies, even if they…
The Importance of Diversification
…better: The article warns investors that more funds don’t necessarily increase diversification: “Combining funds that have similar holdings will give you little or no diversification benefit.” Asset class: Diversification across…
Active Fund Performed “So-So” in 2019
…bond funds beat the market (net of fees) with muni-bond funds showing the highest success rate. The article summarizes its findings: “Active funds generated strong absolute returns for investors, but…
‘Dow 36,000’ Misses the Mark
…even with its foibles, the “Dow 36,000” is not as preposterous as it may have first appeared: “Low-cost, well diversified index funds of equities remain the main tool for most individual…
Expected Returns and the Enterprise Multiple
…returns associated with value stocks and low average expected returns earned by glamour stocks are compensation for risk or a result of systematic mispricing.” The recent study created test portfolios…
Interview with Aswath Damodaran
…low rates, perhaps we have to accept that this is not an aberration, that we “live in a world of low rates and high risk premiums.” If rates do go…