Results 201–234 of 234 found.
Are Preferred Stocks an Alternative to Safe Bonds?
Low interest rates mean that investors can no longer generate the income they need (and were used to). This dilemma has triggered a search for higher-yielding alternative forms of fixed income investing. Those investors who choose preferred stocks must understand the hidden and obvious risks.
Are the Returns of Jeremy Siegel’s “Superstar” Funds Likely to Persist?
If historical returns provide useful insights when it comes to identifying skillful active managers, then surely those funds with the longest track records of success are most likely to be the “winners” of the future. I tested this hypothesis using data from Jeremy Siegel’s Stocks for the Long Run.
Warren Buffett and the Superinvestors of Graham-and-Doddsville: A Performance Update
Should advisors expect legendary value investors, like Warren Buffett, to deliver alpha? A look back at Buffett’s 15-year track record, as well as the two funds he identified in 1984 as “superinvestors,” shows that passively managed alternatives offer better prospects for the future.
Exposed: The Myth of Private Equity and Venture Capital Outperformance
Don’t believe the claims of outperformance among private equity and venture capital investors. A recent study documents the daunting odds against picking a winner in these complex alternative asset classes. Fortunately, there’s a way for advisors to gain similar exposure to potentially higher returns in low-cost passive funds.
Does Active Management Add Value in Emerging Markets?
I continue my series on the ability of actively managed funds to add value for their investors with an in-depth look at the asset class that is the “poster child” for an inefficient market – emerging markets. Can active managers outperform a passive index, given the supposed abundance of mispriced emerging-market stocks?
Does T. Rowe Price Add Value for Investors?
With approximately $600 billion under management, T. Rowe Price has been entrusted with the assets of countless investors over its nearly 80-year history. Its eponymous founder popularized the concept of active management through growth-stock investing. I will examine whether the firm’s funds have historically added value for investors relative to a passive benchmark.
Do International Actively Managed Small-Cap Funds Add Value?
One frequently hears active managers claim that they avoid the large-cap U.S. market because it’s too hard to find undervalued stocks. By that reasoning, actively managed small-cap international funds should be alpha-generating powerhouses. Let’s see if that’s true.
Does GMO Add Value for Investors?
GMO is one of the most highly regarded fund families in the world, and investors have entrusted them with over $100 billion in assets. But is there any statistical evidence that the firm has been able to add significant value versus a passive index fund?
Sustainable and Responsible Investing: Is There a Price to Pay?
Consumers can use their market power to demonstrate their aversion to certain business activities by choosing not to purchase goods or use services from companies that, in their minds, are selling immoral products. Similarly, investors can decide not to invest in such companies. But do those investors sacrifice returns relative to a broad-based index fund?
Why Dividend-Paying Stocks are Riskier than You Think
As advisors shift allocations from bonds to high-dividend stocks, they are exposing their clients to equity market risk. But they are also increasing interest-rate risk. Investors in two of the biggest dividend ETFs – SDY and VIG – are among the most exposed to the surging demand for dividend-paying stocks.
Third Avenue Management Defends Its Pursuit of Alpha
Bloomberg TV recently invited me onto their new show, Bloomberg GO, for a short debate on active versus passive investing with David Barse, the CEO of Third Avenue Management. Barse stated his funds had been able to beat their index benchmark. Let’s go to our trusty videotape to see if Third Avenue has, in fact, been delivering alpha.
Does Wells Fargo Add Value for Investors?
Assets in actively managed mutual funds have been a consistent source of revenue growth for Wall Street banks. But would investors have been better off in passively managed funds? I’ll answer that question for Wells Fargo and then for the group consisting of the four largest banks.
Does Morgan Stanley Add Value For Investors?
In the latest 10-year period, only 38% of Morgan Stanley’s mutual funds outperformed their analyst-assigned benchmarks. Thus, while the fees these funds have generated are among the few consistent bright spots of growth on Wall Street, there is still a question for investors: Have these actively managed mutual funds been good investment choices?
Did Barron’s Number-One Ranked Fund Family Add Value for Its Investors?
If any actively managed fund family were able to deliver superior results, surely it would be the one chosen by Barron’s as its top performer during the last decade. Thus, we clearly should expect to see Waddell & Reed’s funds outperform relative to passively managed alternatives.
Do The Gabelli Funds Add Value for Investors?
Mario Gabelli is one of the highest paid executives in America, having earned $88.5 million in 2014 – more than the leaders of all other publicly traded asset-management firms. But have the investors in his mutual funds been as richly compensated when compared to what they would have earned in comparable, passively managed funds?
Can American Funds Sustain Its Outperformance?
Among actively managed funds, American Funds has a reputation for providing investor-friendly, low-cost products with sustained records of outperformance. But has it outperformed comparable funds from Vanguard and Dimensional Fund Advisors (DFA)? If so, should investors expect its funds to maintain their edge?
Are Grantham and Hussman Correct About Valuations?
For several years, well-respected financial experts such as Jeremy Grantham and John Hussman have been cautioning investors that the market, specifically the S&P 500, is vastly overvalued. Their warnings are based on the Shiller CAPE 10-year ratio compared to its long-term average. Their warnings should be taken with more than a few grains of salt.
Do Goldman Sachs' Funds Add Value for Investors?
Over the last few years, an expanding line of mutual funds created by commercial banks such as Goldman Sachs and JPMorgan Chase have been drawing billions of dollars from investors looking to earn a good return. While the fees these funds have generated are among the few consistent bright spots of growth on Wall Street, the question for investors is whether or not the active mutual funds managed by these banks actually have been good investment choices.
Does Lipper's Best Overall Fund Company Beat a Passive Strategy?
Lipper recently gave financial services firm TIAA-CREF the award for "Best Overall Large Fund Company", making 2015 the first time any fund family has won this honor for three consecutive years. Among its actively managed peers, TIAA-CREF's funds did exceptionally well. But does that mean your clients benefitted by owning its funds?
An In-Depth Look at the MFS Value Fund
As I continue with my series analyzing the performance of some of the most successful actively managed mutual funds, it's important to acknowledge that I possess the benefit of hindsight; I am selecting funds I know have done well in the past. The question I seek to answer is whether investors should expect that outperformance to continue. With that in mind, today we'll take an in-depth look at the MFS Value Fund (MEIAX).
An In-Depth Look at Fidelity's Contrafund
Fidelity's largest actively managed fund is the Contrafund (FCNTX). It's also among Fidelity's top performers, making it their flagship fund, a status previously accorded to the Magellan Fund under Peter Lynch. Will Contrafund investors continue to enjoy outperformance or will they face flagging returns like Magellan's investors did following Lynch's departure?
An In-Depth Look at the Sequoia Fund
Looking at its 35-year track record, some now consider the Sequoia Fund (SEQUX) an anomaly; it is an actively managed fund that has persistently generated positive risk-adjusted returns, outperforming its peers and its benchmark. Should investors expect this outperformance to persist?
Looking Back at James Montier's "Perfect" Value Investors
Is there such a thing as a "perfect" value investor? And if so, what does that investor's fund look like? James Montier thought he knew the answers when he penned his 2006 article "The Perfect Value Investor." Let's look back and see how that portfolio did.
How AQR's New Fund Adds Value - An Alternative Approach to Alternatives: Investing with Style
The conventional justification for alternative investments has been their ability to effectively diversify against core equity and fixed-income allocations. But, in many cases, the empirical data doesn't support that view. A new fund provides a different way to obtain returns from sources that have low to negative correlation to stocks and bonds, as well as each other - an alternative to alternative investment vehicles.
Structured Portfolios: Solving the Problems with Indexing
An overwhelming body of evidence demonstrates that the majority of investors would be better off by adopting indexed investment strategies. A total-stock-market index is fine for many investors. But indexed investors who desire certain types of exposure face a number of problems - which are solved with what I call "structured portfolios."
Results 201–234 of 234 found.