Active investment management’s weekly magazine for fee-based advisors

UpClose
An up-close look at topics with current relevance to the field of active investment management. Investment fund managers, financial strategists, research analysts, financial advisors, and professional journalists examine topical active management issues, best practices for risk management within separately managed accounts, research findings, and new industry developments.

Risky business

How can advisors build a more meaningful investor behavioral profile? The long-lasting effects of the Great Recession It is hardly news that many investors remain permanently scarred by the credit crisis of 2007 to 2009. Many research studies since have...

The case for managed futures in active strategies

Why managed futures—an often misunderstood tactical tool—can play an important role in portfolio construction, either as a stand-alone strategy or as a key strategic element. During my three decades of experience in using managed futures in active...

Mutt vs. purebred: How should you invest?

Can lessons learned from our canine friends provide a better understanding of the characteristics of effective portfolio diversification? My wife and I have always been dog people. We’ve never owned cats, although we love to play with those of friends...

No investment crystal ball needed

Realistically estimating strategy performance through stochastic models. Money managers have a tough job. They need to raise capital, build and maintain client relationships, keep in compliance of regulations, and then actually manage investments. All...

Not all investment returns are created equal

Understanding the important differences between absolute return, total return, and relative return. The financial media has spent quite a bit of time during the current bull market reporting on the “underperformance” of actively managed funds. While the...

Leverage for the long run

‘False precision’ explored: There is never certainty in terms of market or strategy outcomes, only probabilities and managing risk—and whether you have the emotional fortitude to stick with a plan and process over time. Editor’s note: Michael...

A case for active tactical investing

Lessons from behavioral economics and fractal mathematics theory can help explain why tactical investment strategies can be beneficial in portfolio construction. Editor’s note: Dennis Yamasaki has an extensive educational background in quantitative...

5 top concerns faced by financial advisors in 2016

Financial advisors greeted 2016 in a relatively upbeat mood—what are they thinking about now? Though we still have several important months to go, 2016 has already been a remarkable year on several fronts: The worst post–WW II start ever for the U.S....

Investing in election-year markets

Presidential election years are unique, and this election year is shaping up to be like no other. The impact of elections on markets and investor portfolios can be significant. Here we take a historical look at how markets have behaved during these...

The case for mechanical trading strategies

When it comes to implementing trading strategies, there are many compelling reasons to rely on computers rather than human discretion. Computers have been used in the investment business for more than 40 years. Initially, fund managers used computers...

The problem with pie charts

Relying on 30-year-old asset-allocation models makes little sense in today’s investment environment. “Tactical,” “strategic,” “active,” “passive”: These are all somewhat nebulous terms that financial advisors use expecting the general investing...