Tag: performance

The Power of Simple Solutions

  One hundred million users in the US, a market size of almost $70 billion, and growth rates ranging from 4.8% to almost 10% – these sound like the descriptive statistics of a thriving and successful industry[i].  Perhaps, but consider that the underlying problem this industry is trying to solve is getting worse, not better.  I’m… Read more »

What The Data Says About Market Crashes

With global equity markets continuing to trade at all-time highs, most astute advisors are seeking downside protection.  The recent bull market in U.S. stocks entered its 10th year and the concern over a large drawdown or even an overnight price shock is also reaching tangible levels.  As systematic managers, we rely on the data to… Read more »

An Alternative to Liquid Alternatives

In the aftermath of the Great Recession investors have sought greater diversification for their portfolios. One set of instruments that investors have used to achieve this goal is liquid alternatives (aka ‘liquid alts’). Investors are seeking out these strategies in an effort to reap the potential portfolio benefits of: Uncorrelated returns Superior risk-adjusted returns Lower… Read more »

The Value of Stopping

In November, The Ringer’s Danny Chau published an article about the unique abilities of NBA superstar James Harden, whose absurd level of play this season has made him an MVP favorite. In the piece, Chau recounts a conversation with Dr. Marcus Elliott of P3 Applied Sports Science, a performance facility that uses advanced technology to test the… Read more »

Trend Follow Everything: Actively Managed Funds

The Wall Street Journal recently published a profile piece about Will Danoff, the manager of Fidelity’s Contrafund (FCNTX), which got us thinking. As stated in the piece, the $108 billion Contrafund has averaged a 12.7% annual return since Danoff took over the fund in September 1990, outperforming the S&P 500 index by 2.9 percentage points per year…. Read more »

Trend Follow Everything: Bank Woes and Risk Management

As media outlets, governments and markets react to the continuing troubles of Deutsche Bank (NYT, BBC, Bloomberg, Atlantic), our research staff was both eager and curious to examine the potential impact of adding a trend following system to DB’s stock, as well as to those of fellow sector firms Credit Suisse and Citigroup. The recent woes of these… Read more »