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

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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.

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...

Why goals-based investing makes sense

Financial advisors and investment managers use 21st-century tools to help clients achieve “real” investment success. Financial advisors who use fee-based managed accounts can more effectively help clients meet their investment objectives if they...

The volatility cycle

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...

A more efficient (and profitable) frontier

Why active management makes optimal portfolios easier to create In his 2011 best seller titled “Thinking, Fast and Slow,” Nobel Prize–winning author Daniel Kahneman explains how people form opinions from complex information, saying, “It is the...

The benefits of simplicity

The principles of Occam’s razor offer insights for investors, investment managers, and strategists “There never was a sounder logical maxim of scientific procedure than Ockham’s razor: Entia non sunt multiplicanda praeter necessitatem. That is to...

A repeatable process: The only thing we can control

Consistent analysis and understanding differing market time frames are both critical in an uncertain global financial environment More than 30 years of studying financial asset prices and related data have convinced me of one thing: Your investment...

Survive and thrive in the next bear market

Helping clients maintain composure in the face of market volatility pays long-term dividends for your firm. After a long day of conference meetings and presentations, you can’t wait for the happy hour and dinner, which is being held in a beautiful...

They’ve got it backward!

Should buy-and-hold investors be more active and active investors more patient? It was 1969, and my favorite Michigan-area radio station was WKNR. One deejay, Russ Gibb, got a call from a college student saying there was a hidden verse in the Beatles’...

Buy and fold

The only investment approach investors should consider is one they will actually follow. Millions of Americans follow what has become traditional advice to “buy and hold.” This approach might be best summarized by John Bogle, founder of The Vanguard...