An Outstanding Hedged-Equity Fund
The Absolute Capital Opportunities Fund (CAPOX) uses a flexible approach to value investing. It is sub-advised by a team at Chicago-based Kovitz, led by Mark C. Rosland and Joel D. Hirsh. As of May 31st, 2020 its cumulative return was 29.49% versus 1.03% for the HFRX equity hedge index.
Gundlach – Trump will Defeat Biden; Avoid the Bond Market
Jeffrey Gundlach, who famously predicted Donald Trump’s victory in 2016, said that the president will defeat the presumptive Democratic nominee, Joe Biden, in November. He also dimmed the expectations of fixed-income investors when he said to avoid short- and long-term bonds.
Why Defined-Outcome Products are Dominating ETF Flows
Bruce Bond is co-founder and CEO of Innovator Capital Management. Having cofounded PowerShares Capital Management in 2003, he is recognized as one of the pioneers of the ETF industry. I spoke with him about the explosive growth in flows to defined-outcome ETFs.
Southeastern: The Exceptional Opportunity in Small-Cap Value
On April 9, Memphis-based Southeastern Asset Management announced that it was re-opening its Longleaf Partners Small-Cap Fund (LLSCX). It had closed the fund to new investors in August 1997. I interviewed two of the fund’s managers, Staley Cates and Ross Glotzbach.
Neil Howe – The Pandemic and the Fourth Turning
Neil Howe foresaw a global crisis that would upend society. He didn’t know it would be a pandemic, but, throughout his career, he has been predicting a “fourth turning” – an event that would reshape societal norms and usher in a new generation of leaders.
Tweedy, Browne – Why Value Investing Will Continue to Thrive
This year marks the 100th anniversary of the renowned investment firm Tweedy Browne. The firm was originally a broker, and one of its clients was Benjamin Graham. I interviewed six members of Tweedy, Browne’s investment committee.
Robert Shiller: “Not Much of a Sell Signal” for U.S. Stocks
The conventional wisdom is that U.S. stocks are overvalued and the only uncertainty is the timing of the inevitable correction. But Robert Shiller says his CAPE ratio, when considered alongside low bond yields, is not giving “much of a sell signal” for U.S. stocks.
Humility and Patience: Understanding the Long-Term Outperformance of the First Eagle Overseas Fund
The First Eagle Overseas fund (SGOVX) has an exceptional 27-year history. Since its inception, it has returned 9.15% versus 4.03% for the MSCI EAFE index. It was originally managed by the legendary Jean-Marie Eveillard. I spoke with its current management team about how the fund has performed during the coronavirus crisis and why financial professionals should look to diversify outside the U.S. markets.
The Science Behind Multi-Factor Strategies
The last decade has been a painful one for investors who believe in a factor-based approach to investing and have stuck with those factors that have historically performed well, namely the value factor. But a breed of products have avoided the plight. ETFs that were designed to be nimble and allocate across a range of factors have not suffered the same performance deficit.
A Revolutionary Approach to Fixed Income Management
Sonal Desai, PH.D., is executive vice president and chief investment officer of Franklin Templeton Fixed Income, as well a portfolio manager for a number of strategies. In this interview, she discusses the unique investment strategy she has developed, as well as the key risks – specifically the coronavirus – facing investors.
How to Generate Income with Downside Protection
Margaret Farquharson is a senior director with the Nationwide Funds Group and leads its exchange traded fund business, where she has oversight for all aspects of the business including product development, product management, marketing, distribution, and operations.
Northern Trust – It’s Dangerous to be Prematurely Cautious
Bob Browne is the chief investment officer of Northern Trust Asset Management, which has more than $900 billion in assets. He chairs the firm's investment policy committee, which sets investment policy for all Northern Trust groups. In this interview, he discusses his views on the global economy and markets.
The Keys to Advising Women Over Age 50
Jan Blakeley Holman is the director of advisor education for Thornburg Investment Management. As a speaker and author, Jan draws on four decades in the business, first as an advisor, then as a financial services industry executive and now as an advisor to advisors. She has unique expertise in working with women clients and often teaches advisors how to speak with women about managing their wealth.
Gundlach’s Forecast for 2020
Expect a steeper yield curve, according to Jeffrey Gundlach. Investors should be “defensive” with respect to long-term bonds. Gold will go up, inflation will be subdued, there is a 30% to 35% chance of recession and – his “highest conviction” idea – the dollar will weaken. His most surprising prediction was who will be the Democratic nominee.
Our Top 10 Most-Read Commentaries of 2019
Over the course of the past year, we published approximately 2,000 investment and economic commentaries from the most prominent and respected asset managers and analysts. Below are the 10 most widely read, starting with the year’s most popular commentary.
To subscribe to our daily email of commentaries, please go here.
Why Banks are Undervalued
David Ellison manages the Hennessy Large Cap Financial Fund (HLFNX) and the Small Cap Financial Fund (HSFNX), both of which have outperformed their benchmarks since their inception in 1997. Dave has been recognized by Morningstar as the most tenured mutual fund portfolio manager in the financial services sector. I spoke with Dave on December 12.
Three Highlights from the MarketCounsel Summit
MarketCounsel’s Summit, held earlier this week in Miami, lived up to its reputation as the “all-star game” of financial advisor conferences, attracting top-level executives from throughout the investment industry. Here are three highlights from Tuesday’s sessions.
The Fund That Isn’t Following the ESG/SRI Herd
In the U.S., between one quarter and one third of all assets managed are done so with an ESG or SRI mandate. Outside the U.S., that percentage is even higher. The Vitium Global Fund, formerly the Vice Fund, buys what most ESG/SRI investors scorn, stocks in the tobacco, alcoholic beverage, gaming and aerospace/defense industries.
Gundlach on the Biggest Risk Facing Bond Investors and the Likely Next President
Fear among bond investors is focused on rising rates, but Jeffrey Gundlach says you should worry about something more sinister. In his webcast yesterday, he also offered his updated 2020 presidential election prediction.
Nicholas Burns on Healing the Political Divide
American history teaches that we can rise above our deep political divide, according to Nicholas Burns. The U.S. rose to independence based on the “power of ideas,” he said. Lincoln put the country together after a divide far deeper than what we face today, and FDR led the country to victory in its most difficult war. Those challenges were infinitely more difficult than what we face now, Burns said.
Greg Valliere: What the Last 48 Hours Means for Trump
News from the last 48 hours had a significant impact on the chances President Trump will be reelected, according to Greg Valliere. Moreover, although Valliere doesn’t expect the impeachment proceedings to end in Trump’s conviction, there are two scenarios that could change that outcome.
Are Your Clients Ready for Higher Inflation?
For most of the last 20 years, advisors could safely ignore inflation and the risks it poses to their clients’ fixed-income holdings and earning power. But inflation is too dangerous a risk to disregard. What are the chances of an upward spike in inflation and what would that mean for clients?
How Charitable Giving Deepens Client Relationships and Grows Assets
Kim Laughton is president of Schwab Charitable, a national donor-advised fund. In this interview, she discusses how advisors can integrate charitable planning into client discussions and use it as a tool to expand and deepen relationships.
Where the Davis Funds is Finding Great Opportunities
Chris Davis is chairman of Davis Advisors, a firm founded by his father that has followed the same value-investing discipline for its 50-year history. In this interview, Chris discusses the exceptional opportunities he is finding among the financial stocks, how financial advisors can add the greatest value and the biggest changes he has seen over his career.
First Eagle: The Timeless Advantage of Value Investing
The First Eagle Global Fund (SGENX) reflects the teachings of Benjamin Graham and Warren Buffett. In this interview, the three managers of the fund discuss a number of topics, including why they hold a large position in gold, why the market will favor value investors on a long-term basis and their views of ESG investing in the context of the companies they own.
Richard Clarida Explains the “Great Repo Fiasco”
The U.S. economy is in a “good place” and the baseline outlook is “favorable,” according to Richard Clarida. To further allay fears, he called the much-discussed September 17 action by the Fed in the repo market a “technical, central bank 101 operation, not to be conflated with large-scale QE operations.”
A Top Bond Manager Explains His Bottom-up Approach
Lon Erickson, CFA, is a portfolio manager and managing director for Thornburg Investment Management and oversees five of its fixed income mutual funds. Erickson says that rates could be as low as 1.1% in the next year, and he explains why a collaborative, bottom-up construction process will benefit advisors and their clients.