An Example of the Perils of Tactical Asset Allocation

Reading through the Management Discussion of Fund Performance for the Accumulus Talisman Fund reveals a textbook example of a major problem with tactical asset allocation: your call might eventually prove to be the right one but the market ... index futures contracts to freeze the Fund’s asset value until we could determine whether [more...]

Date: 2009-01-14 14:20:43

Blog posts (19) | Videos (6)
 

Victims (III): Prudent Person in Switzerland?

Until the beginning of this year, Swiss pension funds were obliged to follow a detailed set of investment restrictions laid down in a government ... of small iorps which appear to feel more comfortable following a prescribed asset allocation ... asset allocation strategy should be. It is unfortunate that even the most moderate of reasonable changes [more...]

Date: 2009-01-12 11:46:09

John Bogle’s Six Lessons for Investors

John Bogle had an excellent opinion piece in today’s Wall Street Journal titled Six Lessons for Investors. His lessons (along with my commentary) ... underrate the importance of asset allocation. 3. Mutual funds with superior performance records often ... , you’re still going to lose money. 5. Look before you leap into alternative asset classes. - It [more...]

Date: 2009-01-08 18:38:14

THE FINTAG NEWSLETTER @ 14 January 2009

FINTAG COMMENT Junk. Interest rates are nearly zero; equities, real estate, ... asset with a high probability that you will lose your capital is an ideal strategy if there is a good ... of distressed debt funds is being driven by asset allocators who have lost a lot and want to make a quick buck [more...]

Date: 2009-01-14 11:53:57

2008 Investment Portfolio Review: Numbers and Lessons

Vacation is over, bring on 2009! Time for a quick look back ... is an all-in-one fund with an “asset allocation strategy designed for investors currently in retirement.” For 2008 it dropped only 10.9% with an asset allocation of 5% cash, 30% stocks, and 65% bonds [more...]

Date: 2009-01-05 06:32:27

how emerging markets seem to be heavily correlated with domestic markets

I've noticed over the last few months that emerging markets (mainly through index funds) ... of great than 1.0. Oddly, many discussions in asset allocation often assume that emerging ... a time when we need to rethink asset allocation classes.Regards, makingourway [more...]

Date: 2009-01-13 05:37:00

Mean Street: The Secret of My Investing Success

The most skeptical investors I ever met were Wall Street equity capital market professionals– the ones responsible for pricing IPOs ... and two funds managed for Vanguard by Primecap, a West Coast asset manager. Some Vanguard investors ... does an active management skeptic like me outperform with index funds? Mostly luck in allocation [more...]

Date: 2008-06-05 12:31:06

Will Savers Retreat Back to Bank Savings or Mattress Money?

We have already highlighted the potential selling pressure from hedge funds that had blocked redemptions in the final quarter of 2008 ... asset allocation, meaning they are likely to reduce exposure to equities and hedge funds/alternative [more...]

Date: 2009-01-13 06:14:00

401K/IRA/Retirement Account 2009 Reallocations

We did some minor allocation shifts for 2009. The idea was to shift between funds so as to reach a 40-45-15 split among domestic, international, and bond funds respectively, a slightly more aggressive portfolio compared to our 2008 allocation of 40-40-20 between those asset classes. Within our bond portfolio, the long-term bond funds [more...]

Date: 2009-01-12 22:47:01

Shame on Barney Frank - Democrats No Help To Foreclosure Victims Either

I have written here on BiggerPockets extensively on the complete lopsidedness of the banking bailout and how the preference was given early on to ... the Trouble Asset Relief Program (TARP), funded it with $750 Billion of which about $350 Billion still ... counterparts. The first allocation of the assistance or about $300 Billion, focused clearly on the [more...]

Date: 2009-01-10 16:00:59

Why Do Fund of Funds Exist

Here’s a question for you: What is the actual purpose of FoF ? ... to allocate capital too, they are supposed to run the asset allocation (cash bonds stocks). Beyond [more...]

Date: 2008-12-16 18:09:27

Asset Allocation ETFs: Low Expenses Are Nice, Losing Less Money Is Nicer!

I'm a big fan of the folks over at Index Universe. Like myself, Matt Hougan and Jim Wiandt have been at the forefront of the inevitable exchange-traded fund revolution. Nevertheless, there are times when Mr. Hougan's penchant for simplification can undercut a darn good argument. Let me explain. Every now... [more...]

Date: 2009-01-12 10:09:50

The mob is my broker: Cake launching crowdsourced stock fund

The stock tracking and community site Cake Financial is getting some interesting new features, including its first branded financial instrument, ... management services, "a lot is wasted." He's built a service that identifies the stock picks ... stocks that are performing better than yours, in users' accounts with similar asset allocation [more...]

Date: 2008-08-28 22:19:00

Hedge Fund Perry Capital Lays Off 20 to 30 Staffers in Equities

Richard Perry, the 53-year-old founder of Perry Capital, built his name in the world of merger arbitrage ... that requires fewer equity professionals. The nimble asset-allocation process that has been a hallmark ... Casualties include the failed buyouts of student lender Sallie Mae, Penn National Gaming, Alliance Data [more...]

Date: 2008-10-16 15:10:18

Afternoon Reading: Madoff and Getting Metaphysical About Funds of Funds

The spotlight in the Bernard Madoff’s alleged $50 billion Ponzi scheme has now turned to the individuals and businesses that recommended investing ... that ordinary investors can’t and run the asset allocation. “Now ask yourself this: How many FoF [more...]

Date: 2008-12-17 12:22:00

Afternoon Reading: Madoff and Getting Metaphysical About Funds of Funds

The spotlight in the Bernard Madoff’s alleged $50 billion Ponzi scheme has now turned to the individuals and businesses that recommended investing ... that ordinary investors can’t and run the asset allocation. “Now ask yourself this: How many FoF [more...]

Date: 2008-12-17 12:22:00

Where to Invest 2009: Funds & ETF's

"If a man is proud of his wealth, he should not be praised until it is known how he employs it ... of illustrating the wisdom of asset allocation and risk management (click on the image [more...]

Date: 2009-01-12 01:37:39

PE Fund-Raising Declines for First Time Since 2003

Sabrina Willmer, of Private Equity Analyst, files this dispatch on one body blow private-equity firms have taken from the financial crisis ... their private-equity percentage allocation targets because of the marked decline in the stock markets. “ ... over-weighted in the asset class,” said Donn Cox, managing director at LP Capital Advisors. “ [more...]

Date: 2009-01-09 18:27:00

Back to School

I came across this article “Six Lessons for Investors” from The Wall St Journal last week and didn’t have the chance to read it until last night, ... , even by experts. Never underrate the importance of asset allocation. Mutual funds with superior ... into alternative asset classes. Beware of financial innovation. Now, I’m no expert, but here’ [more...]

Date: 2009-01-14 22:27:07

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