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.

6 misconceptions about alternative investments

Alternative strategies provide a valuable tool to help investors manage risk in their investment portfolios, but this growing investment category is often misunderstood. The investment category of alternative investments is perhaps one of the most...

Marketing realities for financial advisors

In a business where establishing trust is essential, it’s unwise to take shortcuts when communicating an advisory firm’s services and active approach to investment management. Consistent messaging and frequent points of contact are the keys to a...

Explaining the (mis)behavior of markets

Does fractal mathematics offer a better way to understand market risk? The traditional test of understanding how something works is to take it apart and then rebuild it. If the clock still keeps time afterward, there is a good likelihood that the...

How to take a financial punch

Like a heavyweight title fight, investment plans have a beginning, a middle, and an end. Do your clients’ plans have the dynamic risk-managed strategies and true diversification needed to take the financial punch that markets will inevitably deliver?...

The risks of bond ‘buy and hold’

Employing “true” diversification and a dynamic, actively managed portfolio approach may help advisors and their clients successfully navigate a lower-return market environment. As investors, many of us have traditionally been taught that bonds and other...

The financial and investment impact of divorce

Why the role of financial risk management may become even more critical as divorced couples face emotional, lifestyle, and financial stress and change. In both life and investing, it is common to believe that existing or recent facts will continue...

Low volatility—high returns?

What offers a better opportunity for investment returns: low-volatility or high-volatility markets? It doesn’t seem possible that low-volatility markets might deliver better returns than the converse of more alpha being delivered in volatile markets. It...

Should clients really want to beat the market?

What does it take to “beat the market”? Is it more important to deliver value to clients in terms of risk-adjusted returns? Proponents of active management have been somewhat on the defensive over the past several years. With relatively strong stock...

Advisors prefer active management

Several studies assess advisor attitudes around portfolio management and risk mitigation for clients—showing a continued preference for actively managed strategies. Editor’s note: This article first published in our magazine in October 2015, but...

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...