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 »
Tag: strategies
Continuous Improvement
I have the benefit of an insider’s view of many different businesses associated with my family office and private equity work. I sit on a few boards, spend significant time coaching and strategizing with executives, and actually have a few direct private investments myself where I am actively involved in business strategy and development…. Read more »
Yes, Behavior Bubbles Do Exist
The other day I was speaking with my brilliant friend Liam about the snap back in the market from the almost historic down move, and he reminded me of the question I asked in a blog last November: Do Behavior Bubbles Exist?. I think we have our answer, and in fact, we may have had… 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 »
Goldman’s Warning & Blueprint’s Answer
Goldman Sounds A Warning This seldom happens: Equities, bonds, and credit being similarly expensive at the same time. “A condition that is going to translate into pain for investors”. (Full Article Here) Major drawdowns in 60/40 portfolios averaged 26% in real terms, lasted about 19 months, and took almost two years to return to previous peaks…. Read more »
Do Behavior Bubbles Exist?
A few weeks ago, I attended a family office conference on the West Coast that, as in the past, was comprised of a crowd of industry experts (writer excluded of course), including family office advisors, executives, and top minds from all corners of the investment universe. Being a lifelong member of the East Coast clan,… 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 »
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 »