Creative Solutions in a Returns-Challenged World: Reinsurance

Reinsurance is a risk transfer service for insurance companies. When insurance companies write enough policies to become concentrated in one area or they need to write more policies to keep the relationships they have, they will engage a reinsurance firm.

What is Goals-Based Investing?

While iPhone apps, SMART goals (Specific, Measurable, Attainable, Realistic and Timely) and other tools help with keeping resolutions, research shows that between 62-88% of resolutions fail. How can one attempt to avoid this grim reality?

Fear the Pharoah?

Every time a horse has won the Triple Crown, the stock market has fallen an average of 9% for the rest of the year. So should we, in fact, fear the pharaoh?

Active v. Passive Investing: The True Fight Night

On Saturday May 2nd, millions of viewers tuned in to watch Floyd Mayweather and Manny Pacquiao duke it out in the boxing ring. While many were left disappointed at what had been billed as the “fight of the century,” Jason Zweig of the Wall Street Journal contends that the real heavyweight match of the year took place not in the ring but on the stage of the Grant’s investment conference. The players: James Grant and John Bogle. The topic: active v. passive investing.

Hedge Funds & Stock Markets: Wolves in Sheep’s Clothing?

Last year was a difficult year for active management in general and, outside global macro and trend following strategies, hedge funds in particular. General underperformance combined with CalPERS’ decision to exit hedge funds turned hedge funds into the industry’s scapegoat. A recent New York Times article “As Hedge Fund Returns Falter, Money Continues to Flow […]

CalPERS hedge fund universe

Don’t Jump on the Bandwagon: What the CalPERS Decision To Eliminate Hedge Funds Really Means

Last month, CalPERS, the largest public pension fund in the U.S., made the decision to eliminate hedge funds from its portfolio. “We are always examining the portfolio to ensure that we are efficiently and cost-effectively achieving our risk-adjusted return goals,” said Ted Eliopoulos, CalPERS Chief Investment Officer, in a press release on September 15. “Hedge […]

Private Capital as an Asset Class

Private Capital has become a mainstay of many institutional and individual portfolios over the past 10 years, weathering challenging economic and market environments. As an asset class, it has provided investors the opportunity for returns in excess of the public stock markets in exchange for less liquidity and different risks. Based on our 2014 Capital […]

The Fundamental Things Apply

As we look to 2014, many are reflecting on a very strong year for domestic stock markets. However, a key component that is missed by many investors and the media alike is the failure to appreciate how much (or rather how little) of that rally has been justified by an improvement in underlying fundamentals. As […]

The Safety of Safe

Financial markets have been particularly volatile in the last several weeks, with both stocks and bonds declining. This turmoil was largely triggered by Federal Reserve Chief Ben Bernanke’s comments regarding the eventual end of quantitative easing, as investors questioned the Fed’s credibility. As evidenced in 1994, a change in the Fed’s course can significantly disrupt […]