The experience of two bear markets in the past decade reminded investors of the importance of diversification. This, coupled no doubt with some envy of the “endowment model” of the likes of Yale and Harvard universities, has caused many to increase their allocation to hedge funds. While this often makes sense, we think it’s important that investors set their expectations appropriately.
A “big data” revolution is under way, transforming the volume and nature of data generated throughout the economy. This trend—driven by the data-intensive nature of innovations such as social networking—is highly disruptive to the tech sector, creating fresh challenges and opportunities for investors, as my colleague Chris Toub explains below. (more…)
In January, it emerged that Shell UK had become the latest—and probably the last—company in the UK’s FTSE 100 Index to announce it was closing its defined benefit (DB) pension scheme to new members. The news points up a dilemma facing the trustees of many large corporate pension providers.
History suggests that reports of active management’s death are premature. In fact, conditions appear ripe for a comeback, as my colleague Scott Wallace ably explained in a recent article for Institutional Investor.com’s Global Market Thought Leadership blog, attached below.
Last month, I wrote that even great investors are very likely to underperform in one of the next three-years periods. Here’s some historical evidence that even champs can sometimes look like chumps. (more…)
In November, legendary equity investor Bill Miller stood down as portfolio manager of the Legg Mason Capital Management Value Trust, after underperforming in four of the past five years. Does this mean Miller had lost his touch? (more…)