One of the more interesting aspects of our practice at Springwater is that we occasionally find our “investment mood” at odds with that of our prospective clients. So it is context of managing (prospective) client expectations that we share with you below the contents of an email we sent to our clients in May 2007, […]
Yet another study reveals the truth about active investment management – that beating the market is hard, and doing it consistently is nearly impossible. This particular study started in March 2009 – the beginning of the current bull market – and looked at 2,862 actively managed US equity mutual funds that were in operation for […]
University of Chicago Booth Professor and Nobel prize winning economist Eugene Fama talks about the evolution of modern finance. Click here to watch the short, three minute video.
Last week, California Public Employees’ Retirement System (CalPERS), the largest pension fund in the US, announced that it would pull all $4 billion from its hedge fund investment program of 24 hedge funds and six hedge “fund-of-funds”. CalPERS was one of the first pension funds to invest in hedge funds in 2002. Hedge funds – […]
The financial services industry spends millions of marketing dollars every year trying to convince investors that the key to financial success is picking the right stocks (or mutual fund) or correctly timing the market. Yet study after study over the past four decades has shown that most actively-managed mutual funds under-perform their benchmarks. For example, […]
In trying to understand the concept of active management, and its potential for success, let’s begin with the question: What is a stock? A stock is simply an ownership share in a company. Each share of stock in a company represents a part ownership for the shareholder. And each share of stock represents a claim […]
In an August 19, 2014 article on the CBS MoneyWatch website, author Larry Swedroe tackles the question of whether active management can generate superior results to index or asset class-oriented strategies in less developed market segments, like emerging markets stocks. One argument often made by advocates of active management – or stock-picking – is that […]