Active investment management’s weekly magazine for fee-based advisors
Charlie Bilello is the director of research at Pension Partners LLC, an investment advisor that manages mutual funds and separate accounts. He is the co-author of four award-winning research papers on market anomalies and investing. Mr. Bilello is a Chartered Market Technician (CMT), a member of the Market Technicians Association, and holds the Certified Public Accountant (CPA) certificate.
Are lower-risk portfolios with higher returns really too good to be true? More risk equals more return. Less risk equals less return. These are the commandments of the capital asset pricing model (CAPM), taught to first-year business students all around...