Why we use ETFs in portfolio construction
Exchange-traded funds (ETFs) have been an integral part of our portfolio construction methodology for over two decades, alongside individual security selection. ETFs provide portfolio managers and investors exposure to defined indexes for a very reasonable fee – especially compared to traditional mutual funds – and provide superior tax efficiency to their mutual fund brethren when Read More
Incentives Matter
One of the main tenets in economics is that incentives matter. Wholesalers give incentives to retailers to sell stuff. Principals give agents incentives to sell stuff. These incentives create behaviors, which are often undesirable. Our business model is depicted on the left. We are principals who work directly with clients without agents, and we receive Read More
The 351st-Worst Day in Stock Market History
Some insights on the market activity of Friday, February 2. While the headlines may be loud, it is important to provide some much-needed context for the noise and hone in on the signal, which is quite normal and generally positive.
2018 Outlook: Continuing to Live in Interesting Times
A little more than a year ago, in the wake of surprising results in the U.S. presidential election, we forecasted elevated levels of market volatility in both directions. While the world at large has felt varying levels of uncertainty and unsteadiness since then, the markets grinded higher in an unprecedented fashion. As a result, current Read More