1) Selecting good mutual funds is difficult as only 20% outperform over the long run and 40% of funds from 10 years ago are no longer in existence.
2) Both qualitative and quantitative factors must be analyzed to pick funds, including the people and investment process, fees, performance history, and consistency with the stated investment strategy.
3) A disciplined due diligence process considers the experience, philosophy, ownership structure, incentives, and research capabilities of the fund managers as well as the quantitative metrics of costs, returns, risk levels, and turnover of the fund.
Greenfield Seitz Capital Management is a registered investment advisor located in Dallas, Texas that manages over $205 million in assets. The presentation provides an overview of the firm's investment strategy, process, performance and team. The firm aims to outperform the S&P 500 index over the long term through a fundamental, bottom-up stock selection process focused on quality companies trading at reasonable valuations. The strategy has achieved strong risk-adjusted returns and top quartile performance versus peers over multiple time periods.
A sense of puzzlement surrounds the topic of hedge funds. Some investors are hesitant to invest because they find the concept foreign, preferring instruments with which they are more familiar. Others claim insight, but are quick to warn against the dangers of Hedge Funds, describing them as complex, high-risk investments that expose the investor to almost infinite downside risks in the pursuit of optimistic returns. Neither of these views are uncommon, although far from the truth. It is therefore important that these rumours and their origins are addressed and that investors are educated regarding the true nature of hedge funds.
The NMS Exchange For Endwments and Foundations 2013 Keith Dixson
The document discusses several topics:
1) Implementing a risk factor framework for institutional investors to allocate risk budgets across factors rather than asset classes.
2) Governance being the centerpiece of sustainable value creation, with institutional investors needing to focus on long-term goals and align interests between managers and investments.
3) An article questioning if alpha is the best measure of hedge fund performance and whether opportunity cost may be a better gauge.
This document summarizes research on the returns experienced by angel investors who are affiliated with angel groups. Some key findings include:
1. The average return for angel investments in the study was 2.6 times the investment over 3.5 years, equivalent to a 27% internal rate of return. However, returns varied widely, with 52% of exits returning less than the amount invested and 7% returning over 10 times the investment.
2. Factors related to higher returns included more hours spent on due diligence, the investor having expertise in the industry of the investment, and frequent interaction between the investor and portfolio company.
3. While the average individual investment returned less than the amount put in, the average
Target date funds are quickly becoming the dominant investment option within many defined contribution retirement plans. Regulators have taken notice with the Department of Labor (DOL) contemplating new disclosure requirements for plans offering target date funds.
In order for a plan sponsor to meet their fiduciary obligations to prudently select and monitor their target date funds, a thorough analysis is necessary because of the underlying complexity of these products and their unique structure relative to the traditional "core" investment options that defined contribution sponsors are used to evaluating.
In this program, we present a framework for a sound fiduciary evaluation of a target date series.
Greenfield Seitz Capital Management is a registered investment advisor located in Dallas, Texas that manages over $205 million in assets. The presentation provides an overview of the firm's investment strategy, process, performance and team. The firm aims to outperform the S&P 500 index over the long term through a fundamental, bottom-up stock selection process focused on quality companies trading at reasonable valuations. The strategy has achieved strong risk-adjusted returns and top quartile performance versus peers over multiple time periods.
A sense of puzzlement surrounds the topic of hedge funds. Some investors are hesitant to invest because they find the concept foreign, preferring instruments with which they are more familiar. Others claim insight, but are quick to warn against the dangers of Hedge Funds, describing them as complex, high-risk investments that expose the investor to almost infinite downside risks in the pursuit of optimistic returns. Neither of these views are uncommon, although far from the truth. It is therefore important that these rumours and their origins are addressed and that investors are educated regarding the true nature of hedge funds.
The NMS Exchange For Endwments and Foundations 2013 Keith Dixson
The document discusses several topics:
1) Implementing a risk factor framework for institutional investors to allocate risk budgets across factors rather than asset classes.
2) Governance being the centerpiece of sustainable value creation, with institutional investors needing to focus on long-term goals and align interests between managers and investments.
3) An article questioning if alpha is the best measure of hedge fund performance and whether opportunity cost may be a better gauge.
This document summarizes research on the returns experienced by angel investors who are affiliated with angel groups. Some key findings include:
1. The average return for angel investments in the study was 2.6 times the investment over 3.5 years, equivalent to a 27% internal rate of return. However, returns varied widely, with 52% of exits returning less than the amount invested and 7% returning over 10 times the investment.
2. Factors related to higher returns included more hours spent on due diligence, the investor having expertise in the industry of the investment, and frequent interaction between the investor and portfolio company.
3. While the average individual investment returned less than the amount put in, the average
Target date funds are quickly becoming the dominant investment option within many defined contribution retirement plans. Regulators have taken notice with the Department of Labor (DOL) contemplating new disclosure requirements for plans offering target date funds.
In order for a plan sponsor to meet their fiduciary obligations to prudently select and monitor their target date funds, a thorough analysis is necessary because of the underlying complexity of these products and their unique structure relative to the traditional "core" investment options that defined contribution sponsors are used to evaluating.
In this program, we present a framework for a sound fiduciary evaluation of a target date series.
The document presents Investment Management Services (IMS) as an investment consultant responsible for researching investment products and managers, monitoring over 800 billion dollars in assets, and supporting investment-related sales and marketing efforts. IMS has over 100 team members conducting extensive manager research and due diligence, with a focus on understanding multiple types of risk beyond just past performance. The summary highlights IMS' process, resources, experience, size, and commitment to oversight and risk management.
Venture capital provides long-term funding for growing companies in exchange for equity. Venture capitalists seek high-growth companies led by experienced management teams. To attract venture capital, a business plan must demonstrate a large market opportunity, competitive advantage, strong financial projections, and validation. Raising venture capital is a selective process that can take several months and requires understanding the investors' evaluation criteria.
Regardless of how much money one has, it seems that everyone wants even greater wealth. One way to accomplish this is through investment strategies to grow your assets.
The document is a letter from Guy Lerner, founder of ARL Advisers LLC, seeking investment from the recipient. It summarizes Lerner's investment approach which focuses on strategic asset allocation across a diverse set of assets using quantitative models, with an emphasis on risk management. It highlights backtested portfolio examples demonstrating competitive returns with reduced risk relative to benchmarks. Lerner invites the recipient to review additional presentation materials outlining ARL's strategies and credentials in more detail.
The document discusses strategies for successful collaboration between actuaries and underwriters. It outlines the benefits of joint goal setting and strategic planning, sharing tools and expertise, and regularly reviewing accounts together. When actuaries and underwriters work as an interdependent team, communicating frequently and understanding each other's roles, the business performs better than if they function in separate silos.
The Outsourced Chief Investment Officer Model: One Size Does Not Fit AllCallan
As investors reach for returns in a sometimes bruising market, they are adding private equity, hedge funds,
and other alternatives, leading to increasingly sophisticated—and complicated—portfolio monitoring and
management. Heightened regulatory and compliance requirements have further increased the time and
resources required to meet fiduciary responsibilities. This has led some investors to consider delegating
investment oversight, monitoring, and management duties.
The industry press regularly reports on a large and rapidly growing outsourced chief investment officer
(OCIO) market, and some fund sponsors wonder if this model would serve them better than the traditional consulting model. Funds managed through an OCIO are beholden to the same challenging market environment and regulatory atmosphere, but the burden of balancing these challenges can be largely shifted from the investment committee to the OCIO provider. Some funds find this solution meets their needs.
In the outsourced chief investment officer (OCIO) model (also known as “implemented consulting,”
“discretionary consulting,” or “delegated consulting”), an institution shifts discretionary authority to an
advisory firm to manage some or all of the investment functions typically performed by the investment committee. The precise definition of this model varies as much as the name, making the size and scope of the marketplace difficult to pin down.
The increasing popularity of this model is in part a response to the frustration investment committees
have felt amid a shifting environment in which portfolio management requires more resources. While an OCIO offers an elegant solution, it is not a panacea for all the issues facing institutional investors, and relinquishing all fiduciary oversight is not an option.
In this paper we describe the OCIO market and Callan’s approach, which acknowledges that each investor faces unique challenges that require custom solutions. We offer two case studies and a series of questions that might assist fund sponsors in weighing the appropriateness of the OCIO model for their fund.
Entrepreneurs and investors must both understand the critical aspects of valuation for pre-revenue
and startup entrepreneurial ventures. By aligning expectations, such understanding fosters positive,
productive relationships between funders and founders. In addition, investors and entrepreneurs
benefit separately when they know the answers to essential questions. What are the most important
factors angel investors should consider in determining a company’s value? How can entrepreneurs
better present their companies to attract early-stage investors and build effective relationships?
“Investment Valuations of Seed- (Startup) and Early-Stage Ventures” by Luis Villalobos, founder of Tech
Coast Angels, defines perspectives from which investors and entrepreneurs view valuation and provides
insights that can reduce the natural contentiousness of negotiating valuation.
The Imperatives of Investment Suitabilityfinametrica
Presentation given by Paul Resnik (Co-Founder, FinaMetrica) at the National Institute of Securities Markets (NISM) in Mumbai, India. It emphasizes on the importance of measuring risk tolerance of investors in the process of matching investment products to an individual's needs. Visit www.riskprofiling.com to know more.
This newsletter provides information on the Wellington West Canadian Equity Portfolio as of June 30, 2011. It discusses the portfolio's investment philosophy, focus on undervalued businesses with strong fundamentals and rational management. Statistics are presented on the top 10 holdings, sector allocations, and performance since inception in August 2008. The portfolio has outperformed its benchmark with a return of 3.64% versus the index's 7.91% return.
This document provides a summary and position on successful strategies for underwriting large group health insurance. It discusses three key rules: the 90/10 rule which states 10% of quoted business is typically closed; the 80/20 rule where 20% of a group's population accounts for 80% of claims costs; and the 50/50 rule where half of groups in a block will have costs higher than projected and half lower. The document argues focusing resources on opportunities most likely to close based on the 90/10 rule, profiling groups to manage large claims risk per the 80/20 rule, and recognizing cost variability per the 50/50 rule can improve underwriting success more than following detailed underwriting manuals.
A Literature Review of Risk Perception Studies in Behavioral FinanceMShareS
The document summarizes key perspectives on risk from social science researchers, standard finance academics, and behavioral finance academics. Social science researchers view risk as subjective and influenced by qualitative factors like dread, control, and familiarity. Standard finance focuses on objective statistical measures of risk. Behavioral finance examines perceived risk based on beliefs, attitudes, and feelings, informed by experiments and surveys. It finds risk has cognitive and emotional dimensions.
FoHFs failed to deliver uncorrelated, absolute returns during the 2008 crisis as they promised. 97% of FoHFs lost money in 2008, with 87% losing over 10%, while 1/3 of single manager hedge funds were up and 1/5 gained over 10%. As FoHFs grew tenfold in assets from 2002-2005, they became more institutional and their selection process broke down, focusing too much on larger funds and delegating decisions to inexperienced analysts, leading to high correlations with the market.
1) The role of Chief Operating Officer (COO) of a hedge fund has become increasingly complex and important, requiring expertise in many operational areas.
2) A COO's responsibilities include managing operational risk, legal/regulatory risk, and investor relations as well as oversight of valuation, counterparty risk, and back office functions.
3) In the aftermath of the 2008 financial crisis, hedge fund investors have increased their focus on the strength and experience of a fund's back office operations.
The document provides an overview of how to develop a comprehensive investment strategy using a behavioral finance approach to meet various financial goals over an individual's lifetime. It discusses combining modern portfolio theory with behavioral finance to account for multiple investment goals and risk tolerances. It then provides a case study of allocating assets for a couple across basic needs, lifestyle, philanthropy, and legacy portfolios based on their specific needs, goals, and risk profiles for each.
- The survey asked top global hedge fund allocators about their views on important aspects of corporate governance in hedge funds.
- Allocators overwhelmingly believe corporate governance is extremely important and most have decided not to invest in a fund before due to governance concerns.
- Key findings from the survey indicate that allocators prefer boards to have at least three independent directors with no conflicts of interest, hold a minimum of three meetings per year including at least one in-person, and for directors to have substantial experience in the funds industry.
Explaining 30,000 Mutual Funds to a Billion PeopleBentleyDUC
At the 2012 Face of Finance Conference, at Bentley University, in Waltham, MA, Josiah Fisk (More Carrot) presented "Explaining 30,000 Mutual Funds to a Billion People" during the Designing for Financial Systems session.
This document provides information on Morningstar Investment Services' managed portfolio offerings. It outlines mutual fund portfolios, ETF portfolios, and stock portfolios. For the mutual fund and ETF portfolios, it describes the investment philosophy, portfolio construction process, available strategies, fees, and benefits. It also provides examples of actual portfolio holdings and performance statistics. For the stock portfolios, it gives an overview of the available customized options and stock research approach. Overall, the document aims to showcase Morningstar Investment Services' turnkey portfolio solutions for advisors.
FS_Advice_-_Leverage-_Where_Advisers_Fear_to_Tread_-_Julie_MckayClaire Starr MBA
This document discusses the challenges financial advisers face when customers have unrealistic expectations but want conservative investment options. It notes that the gap between expectations and reality is widening due to factors like longer lifespans, higher costs of living, and lower expected returns. While saving more is important, the document argues that taking prudent risks, such as borrowing to invest, may be necessary to boost returns enough to meet goals. It acknowledges advisers are cautious about recommending borrowing but suggests rules of thumb could overlook opportunities if risks are properly managed through diversification and portfolio adjustments.
The document outlines considerations for implementing a strategic seed investing program in healthcare. It recommends:
1) Designing an investment model focused on high-quality founders and capital efficient sectors.
2) Developing partnerships with incubators, universities, and other investors to source deals.
3) Establishing a rigorous but efficient due diligence and approval process.
4) Managing financial expectations, with most seed investments unlikely to yield returns but building expertise in emerging areas.
If this book were a fairy tale, perhaps it would have a happier en.docxwilcockiris
If this book were a fairy tale, perhaps it would have a happier ending. The unfortunate fact is that the individual investor has few, if any, attractive investment alternatives. Investing, it should be clear by now, is a full-time job. Given the vast amount of information available for review and analysis and the complexity of the investment task, a part-time or sporadic effort by an individual investor has little chance of achieving long-term success. It is not necessary, or even desirable, to be a professional investor, but a significant, ongoing commitment of time is a prerequisite. Individuals who cannot devote substantial time to their own investment activities have three alternatives: mutual funds, discretionary stockbrokers, or money managers.
Mutual Funds
Mutual funds are, in theory, an attractive alternative for the individual investor, combining professional management, low transaction costs, immediate liquidity, and reasonable diversification. In practice, they mostly do a mediocre job of managing money. There are, however, a few exceptions to this rule.
For one thing, investors should certainly prefer no-load over load funds; the latter charge a sizable up-front fee, which is used to pay commissions to salespeople. Unlike closed-end funds, which have a fixed number of shares that fluctuate in price according to supply and demand, open-end funds issue new shares and redeem shares in response to investor interest. The share price of open-end funds is always equal to net asset value, which is based on the current market prices of the underlying holdings. Because of the redemption feature that ensures both liquidity and the ability to realize current net asset value, open-end funds are generally more attractive for investors than closed-end funds.1
Unfortunately for their shareholders, because open-end mutual funds attract and lose assets in accordance with recent results, many fund managers are participants in the short-term relative-performance derby. Like other institutional investors, mutual fund organizations profit from management fees charged as a percentage of the assets under management; their fees are not based directly on results. Consequently, the fear of asset outflows resulting from poor relative performance generates considerable pressure to go along with the investment crowd.
Another problem is that open-end mutual funds have in recent years attracted (and even encouraged) "hot" money from speculators looking to earn quick profits without the risk or bother of direct stock ownership. Many highly specialized mutual funds (e.g., biotechnology, environmental, Third World)
have been established in order to exploit investors' interests in the latest market fad. Mutual-fund-marketing organizations have gone out of their way to encourage and even incite investor enthusiasm, setting up retail mutual fund stores, providing hourly fund pricing, and authorizing switching among their funds by telephone. They do not discourage the .
This document is a project report submitted for a master's degree in business management. It discusses portfolio management and investment decisions. The introduction provides an overview of portfolio evaluation and different techniques for portfolio construction and analysis. The objectives are to help investors choose effective portfolios and identify the best portfolio of securities. The methodology section describes how primary and secondary data was collected for the project. The limitations include a reliance on secondary sources and constraints of time and data availability.
The document presents Investment Management Services (IMS) as an investment consultant responsible for researching investment products and managers, monitoring over 800 billion dollars in assets, and supporting investment-related sales and marketing efforts. IMS has over 100 team members conducting extensive manager research and due diligence, with a focus on understanding multiple types of risk beyond just past performance. The summary highlights IMS' process, resources, experience, size, and commitment to oversight and risk management.
Venture capital provides long-term funding for growing companies in exchange for equity. Venture capitalists seek high-growth companies led by experienced management teams. To attract venture capital, a business plan must demonstrate a large market opportunity, competitive advantage, strong financial projections, and validation. Raising venture capital is a selective process that can take several months and requires understanding the investors' evaluation criteria.
Regardless of how much money one has, it seems that everyone wants even greater wealth. One way to accomplish this is through investment strategies to grow your assets.
The document is a letter from Guy Lerner, founder of ARL Advisers LLC, seeking investment from the recipient. It summarizes Lerner's investment approach which focuses on strategic asset allocation across a diverse set of assets using quantitative models, with an emphasis on risk management. It highlights backtested portfolio examples demonstrating competitive returns with reduced risk relative to benchmarks. Lerner invites the recipient to review additional presentation materials outlining ARL's strategies and credentials in more detail.
The document discusses strategies for successful collaboration between actuaries and underwriters. It outlines the benefits of joint goal setting and strategic planning, sharing tools and expertise, and regularly reviewing accounts together. When actuaries and underwriters work as an interdependent team, communicating frequently and understanding each other's roles, the business performs better than if they function in separate silos.
The Outsourced Chief Investment Officer Model: One Size Does Not Fit AllCallan
As investors reach for returns in a sometimes bruising market, they are adding private equity, hedge funds,
and other alternatives, leading to increasingly sophisticated—and complicated—portfolio monitoring and
management. Heightened regulatory and compliance requirements have further increased the time and
resources required to meet fiduciary responsibilities. This has led some investors to consider delegating
investment oversight, monitoring, and management duties.
The industry press regularly reports on a large and rapidly growing outsourced chief investment officer
(OCIO) market, and some fund sponsors wonder if this model would serve them better than the traditional consulting model. Funds managed through an OCIO are beholden to the same challenging market environment and regulatory atmosphere, but the burden of balancing these challenges can be largely shifted from the investment committee to the OCIO provider. Some funds find this solution meets their needs.
In the outsourced chief investment officer (OCIO) model (also known as “implemented consulting,”
“discretionary consulting,” or “delegated consulting”), an institution shifts discretionary authority to an
advisory firm to manage some or all of the investment functions typically performed by the investment committee. The precise definition of this model varies as much as the name, making the size and scope of the marketplace difficult to pin down.
The increasing popularity of this model is in part a response to the frustration investment committees
have felt amid a shifting environment in which portfolio management requires more resources. While an OCIO offers an elegant solution, it is not a panacea for all the issues facing institutional investors, and relinquishing all fiduciary oversight is not an option.
In this paper we describe the OCIO market and Callan’s approach, which acknowledges that each investor faces unique challenges that require custom solutions. We offer two case studies and a series of questions that might assist fund sponsors in weighing the appropriateness of the OCIO model for their fund.
Entrepreneurs and investors must both understand the critical aspects of valuation for pre-revenue
and startup entrepreneurial ventures. By aligning expectations, such understanding fosters positive,
productive relationships between funders and founders. In addition, investors and entrepreneurs
benefit separately when they know the answers to essential questions. What are the most important
factors angel investors should consider in determining a company’s value? How can entrepreneurs
better present their companies to attract early-stage investors and build effective relationships?
“Investment Valuations of Seed- (Startup) and Early-Stage Ventures” by Luis Villalobos, founder of Tech
Coast Angels, defines perspectives from which investors and entrepreneurs view valuation and provides
insights that can reduce the natural contentiousness of negotiating valuation.
The Imperatives of Investment Suitabilityfinametrica
Presentation given by Paul Resnik (Co-Founder, FinaMetrica) at the National Institute of Securities Markets (NISM) in Mumbai, India. It emphasizes on the importance of measuring risk tolerance of investors in the process of matching investment products to an individual's needs. Visit www.riskprofiling.com to know more.
This newsletter provides information on the Wellington West Canadian Equity Portfolio as of June 30, 2011. It discusses the portfolio's investment philosophy, focus on undervalued businesses with strong fundamentals and rational management. Statistics are presented on the top 10 holdings, sector allocations, and performance since inception in August 2008. The portfolio has outperformed its benchmark with a return of 3.64% versus the index's 7.91% return.
This document provides a summary and position on successful strategies for underwriting large group health insurance. It discusses three key rules: the 90/10 rule which states 10% of quoted business is typically closed; the 80/20 rule where 20% of a group's population accounts for 80% of claims costs; and the 50/50 rule where half of groups in a block will have costs higher than projected and half lower. The document argues focusing resources on opportunities most likely to close based on the 90/10 rule, profiling groups to manage large claims risk per the 80/20 rule, and recognizing cost variability per the 50/50 rule can improve underwriting success more than following detailed underwriting manuals.
A Literature Review of Risk Perception Studies in Behavioral FinanceMShareS
The document summarizes key perspectives on risk from social science researchers, standard finance academics, and behavioral finance academics. Social science researchers view risk as subjective and influenced by qualitative factors like dread, control, and familiarity. Standard finance focuses on objective statistical measures of risk. Behavioral finance examines perceived risk based on beliefs, attitudes, and feelings, informed by experiments and surveys. It finds risk has cognitive and emotional dimensions.
FoHFs failed to deliver uncorrelated, absolute returns during the 2008 crisis as they promised. 97% of FoHFs lost money in 2008, with 87% losing over 10%, while 1/3 of single manager hedge funds were up and 1/5 gained over 10%. As FoHFs grew tenfold in assets from 2002-2005, they became more institutional and their selection process broke down, focusing too much on larger funds and delegating decisions to inexperienced analysts, leading to high correlations with the market.
1) The role of Chief Operating Officer (COO) of a hedge fund has become increasingly complex and important, requiring expertise in many operational areas.
2) A COO's responsibilities include managing operational risk, legal/regulatory risk, and investor relations as well as oversight of valuation, counterparty risk, and back office functions.
3) In the aftermath of the 2008 financial crisis, hedge fund investors have increased their focus on the strength and experience of a fund's back office operations.
The document provides an overview of how to develop a comprehensive investment strategy using a behavioral finance approach to meet various financial goals over an individual's lifetime. It discusses combining modern portfolio theory with behavioral finance to account for multiple investment goals and risk tolerances. It then provides a case study of allocating assets for a couple across basic needs, lifestyle, philanthropy, and legacy portfolios based on their specific needs, goals, and risk profiles for each.
- The survey asked top global hedge fund allocators about their views on important aspects of corporate governance in hedge funds.
- Allocators overwhelmingly believe corporate governance is extremely important and most have decided not to invest in a fund before due to governance concerns.
- Key findings from the survey indicate that allocators prefer boards to have at least three independent directors with no conflicts of interest, hold a minimum of three meetings per year including at least one in-person, and for directors to have substantial experience in the funds industry.
Explaining 30,000 Mutual Funds to a Billion PeopleBentleyDUC
At the 2012 Face of Finance Conference, at Bentley University, in Waltham, MA, Josiah Fisk (More Carrot) presented "Explaining 30,000 Mutual Funds to a Billion People" during the Designing for Financial Systems session.
This document provides information on Morningstar Investment Services' managed portfolio offerings. It outlines mutual fund portfolios, ETF portfolios, and stock portfolios. For the mutual fund and ETF portfolios, it describes the investment philosophy, portfolio construction process, available strategies, fees, and benefits. It also provides examples of actual portfolio holdings and performance statistics. For the stock portfolios, it gives an overview of the available customized options and stock research approach. Overall, the document aims to showcase Morningstar Investment Services' turnkey portfolio solutions for advisors.
FS_Advice_-_Leverage-_Where_Advisers_Fear_to_Tread_-_Julie_MckayClaire Starr MBA
This document discusses the challenges financial advisers face when customers have unrealistic expectations but want conservative investment options. It notes that the gap between expectations and reality is widening due to factors like longer lifespans, higher costs of living, and lower expected returns. While saving more is important, the document argues that taking prudent risks, such as borrowing to invest, may be necessary to boost returns enough to meet goals. It acknowledges advisers are cautious about recommending borrowing but suggests rules of thumb could overlook opportunities if risks are properly managed through diversification and portfolio adjustments.
The document outlines considerations for implementing a strategic seed investing program in healthcare. It recommends:
1) Designing an investment model focused on high-quality founders and capital efficient sectors.
2) Developing partnerships with incubators, universities, and other investors to source deals.
3) Establishing a rigorous but efficient due diligence and approval process.
4) Managing financial expectations, with most seed investments unlikely to yield returns but building expertise in emerging areas.
If this book were a fairy tale, perhaps it would have a happier en.docxwilcockiris
If this book were a fairy tale, perhaps it would have a happier ending. The unfortunate fact is that the individual investor has few, if any, attractive investment alternatives. Investing, it should be clear by now, is a full-time job. Given the vast amount of information available for review and analysis and the complexity of the investment task, a part-time or sporadic effort by an individual investor has little chance of achieving long-term success. It is not necessary, or even desirable, to be a professional investor, but a significant, ongoing commitment of time is a prerequisite. Individuals who cannot devote substantial time to their own investment activities have three alternatives: mutual funds, discretionary stockbrokers, or money managers.
Mutual Funds
Mutual funds are, in theory, an attractive alternative for the individual investor, combining professional management, low transaction costs, immediate liquidity, and reasonable diversification. In practice, they mostly do a mediocre job of managing money. There are, however, a few exceptions to this rule.
For one thing, investors should certainly prefer no-load over load funds; the latter charge a sizable up-front fee, which is used to pay commissions to salespeople. Unlike closed-end funds, which have a fixed number of shares that fluctuate in price according to supply and demand, open-end funds issue new shares and redeem shares in response to investor interest. The share price of open-end funds is always equal to net asset value, which is based on the current market prices of the underlying holdings. Because of the redemption feature that ensures both liquidity and the ability to realize current net asset value, open-end funds are generally more attractive for investors than closed-end funds.1
Unfortunately for their shareholders, because open-end mutual funds attract and lose assets in accordance with recent results, many fund managers are participants in the short-term relative-performance derby. Like other institutional investors, mutual fund organizations profit from management fees charged as a percentage of the assets under management; their fees are not based directly on results. Consequently, the fear of asset outflows resulting from poor relative performance generates considerable pressure to go along with the investment crowd.
Another problem is that open-end mutual funds have in recent years attracted (and even encouraged) "hot" money from speculators looking to earn quick profits without the risk or bother of direct stock ownership. Many highly specialized mutual funds (e.g., biotechnology, environmental, Third World)
have been established in order to exploit investors' interests in the latest market fad. Mutual-fund-marketing organizations have gone out of their way to encourage and even incite investor enthusiasm, setting up retail mutual fund stores, providing hourly fund pricing, and authorizing switching among their funds by telephone. They do not discourage the .
This document is a project report submitted for a master's degree in business management. It discusses portfolio management and investment decisions. The introduction provides an overview of portfolio evaluation and different techniques for portfolio construction and analysis. The objectives are to help investors choose effective portfolios and identify the best portfolio of securities. The methodology section describes how primary and secondary data was collected for the project. The limitations include a reliance on secondary sources and constraints of time and data availability.
This document discusses portfolio management and investment decisions for a Master's degree project. It includes an abstract that discusses evaluating portfolios from an investor's perspective to manage risk and return. It also covers choosing the right portfolio by following steps to manage all risks and achieve good returns. The document outlines the objectives of studying how to effectively construct a portfolio and make investors aware of choosing securities. It includes acknowledgments, table of contents, and several chapters on investment decisions, portfolio management, portfolio evaluation, findings, and conclusions.
Greenfield Seitz Capital Management is a registered investment advisor based in Dallas, Texas that manages $300 million in assets for high net-worth individuals. The firm focuses on a mid/large-cap growth at a reasonable price strategy and conducts thorough fundamental analysis of companies. Greenfield Seitz has achieved consistent top decile performance over the past 20 years compared to its benchmark and maintains a portfolio of 50-70 stocks across multiple sectors to provide diversification and capital preservation.
Greenfield Seitz Capital Management is a Dallas-based registered investment advisor founded in 1964 that manages $300 million using a mid/large-cap growth at a reasonable price strategy. The firm has a proven investment process focused on fundamental analysis, identifying attractive investment themes, and searching for excellent management teams. Portfolios consist of 50-70 stocks that are diversified by sector with a maximum position of 10% in any single stock.
Greenfield Seitz Capital Management is a Dallas-based registered investment advisor founded in 1964 that manages $300 million using a mid/large-cap growth at a reasonable price strategy. The firm has a proven investment process focused on fundamental analysis, independent research, and identifying attractive long-term investment themes. Greenfield Seitz aims to outperform through a portfolio of 50-70 stocks that is well-diversified across sectors with no single position over 10% of assets.
Greenfield Seitz Capital Management is a registered investment advisor founded in 1964 and based in Dallas, Texas. It manages $300 million in assets for high net worth individuals using a mid/large-cap growth at a reasonable price strategy. The firm is owned by its two principals and employs four investment professionals with over 70 years of combined experience. The presentation provides an overview of the firm's investment philosophy, process, portfolio characteristics, and long-term performance which has consistently ranked in the top decile compared to peers.
48407540 project-report-on-portfolio-management-mgt-727 (1)Ritesh Kumar Patro
This document provides an overview of portfolio management. It discusses key concepts like portfolio construction, types of assets, and the portfolio management process. The main points are:
1) Portfolio construction involves setting objectives, defining a policy, applying a strategy, selecting assets, and assessing performance. The main asset classes are cash, bonds, equities, derivatives, and property.
2) Portfolio management deals with security analysis, portfolio analysis, selection, revision, and evaluation. The goal is to maximize returns for a given level of risk through diversification.
3) Derivatives like futures and options derive their value from underlying assets and allow investors to take long or short positions to profit from price movements.
48407540 project-report-on-portfolio-management-mgt-727 (1)Ritesh Patro
This document provides an overview of portfolio management. It begins with an introduction that defines portfolio management and discusses its key aspects like security analysis, portfolio construction, selection, and evaluation. It then discusses the steps in portfolio construction, including setting objectives, defining an investment policy, and applying a portfolio strategy. The next sections cover topics like types of assets, phases of portfolio management, and security and portfolio analysis. It concludes with a discussion of portfolio selection, revision, and evaluation. The overall summary emphasizes that portfolio management aims to maximize returns for a given risk level through diversification and balancing different asset classes.
Can Traditional Active Management Be Saved?Clare Levy
Active managers need to start incorporating the lessons of behavioural science if they have a chance of reversing the flow of assets into passive investment vehicles. Eric Rovick highlights some of the areas of cognitive risk evident in active investment management and provides a managerial and operational framework for addressing them.
Mutual fund is the better investment planProjects Kart
Mutual funds provide several benefits over other investment options such as banks deposits and stocks. They allow small investors to access a diversified portfolio of securities for a low cost. Mutual funds provide professional management, risk reduction through diversification, liquidity, and convenience. However, investors have little control over costs and cannot create tailored portfolios. The study aims to help new investors understand how to evaluate the risk and return of mutual funds and select appropriate schemes given the current economic environment of falling interest rates and volatile stock markets.
The document discusses the key stages in a fund's life cycle: concept, design, invest & manage, and exit. It notes that funds go through commonly defined stages and explores investment considerations at each stage, such as desired development impact, balancing social and financial returns, and governance structures. Fundraising, deal-making, portfolio management, and eventual exit are also addressed. The life cycle framework is meant to help investors make informed decisions throughout the development of an investment fund.
This document appears to be a dissertation submitted by Sangeeta Pandey to Uttarakhand Graphic Era Hill University for a Bachelor of Commerce (Honors) degree. The dissertation is titled "Comparative Analysis of Banks and Mutual Fund Interest Rates" and was conducted under the supervision of Mr. Ramanuj Tewari. The dissertation includes an introduction to mutual funds and banks, objectives of the research, research methodology, interpretation of findings, limitations, conclusions, and references. It aims to evaluate and compare the performance and interest rates of mutual funds versus domestic bank term deposits.
The document discusses several key issues in evaluating active manager skill:
1) It is difficult to determine what is due to luck versus skill when evaluating manager performance.
2) Both large and small managers may have advantages, and simple metrics like Sharpe ratio are insufficient.
3) Manager evaluations should consider future performance over long time horizons, as well as inherent incentive structures, rather than just short-term past returns. Aligning investor and manager goals and definitions of risk is important for successful long-term partnerships.
This brochure describes funds operated by East West Advisors that feature principal protection against trading losses. The funds purchase investment grade bonds using 70% of assets to provide principal protection at maturity. The remaining 30% is used for commodity trading which could lose value, but the bonds are intended to cover any losses. However, there is no guarantee principal will be protected if the bonds default. The funds aim to provide non-correlated diversification, uncapped growth potential, and principal protection through their hybrid structure of bonds and commodity trading.
1) Hedge funds are increasingly facing the challenge of succession planning as founders reach retirement age. While succession planning is common in large corporations, it has not been widely adopted by hedge funds.
2) There are several reasons why succession planning is difficult for hedge funds, including that founders are often sole proprietors who are not accustomed to delegating authority. Additionally, hedge funds typically do not have independent boards that oversee succession like corporations.
3) Successful succession at hedge funds requires choosing a successor well in advance and gradually transitioning them into the leadership role over several years to give investors confidence in the new leader. Proper timing and communication of the transition is important to reassure investors.
Cost vs. Risk: Finding the right balance for hedge fund administrationGrant Thornton LLP
Hedge Funds—Taking a fresh look at operations: How hedge fund managers can engage the right mix of internal, outside and shadow administration. Read the full paper at http://gt-us.co/1rjV3Se
This document discusses the importance of selecting an appropriate benchmark for evaluating investment performance. It explains that benchmarks should reflect the portfolio's strategy, asset allocation, and investment options. For multi-asset portfolios, the benchmark is typically constructed by combining various market indices weighted to represent the portfolio. Static benchmarks keep index weights constant to assess asset allocation decisions, while dynamic benchmarks adjust weights to evaluate individual managers. In summary, selecting the right benchmark is key to understanding what a portfolio's performance is communicating about the manager's investment decisions.
This document summarizes a study examining 125 equity mutual funds that closed to new investment between 1993 and 2004. The study tests three hypotheses about why funds close: 1) The "good steward" hypothesis argues funds close to restrict inflows and maintain performance, and will perform well after reopening. 2) The "cheap talk" hypothesis posits closing has no real cost if fees increase and existing investors contribute, compensating managers. 3) The "family spillover" hypothesis claims closing diverts attention to other funds in the same family. The study finds little support for good steward performance, but evidence managers raise fees consistent with cheap talk, and little family benefit except briefly around closure.
Standard & poor's 16768282 fund-factors-2009 jan1bfmresearch
This document summarizes a study by Standard & Poor's on factors that predict investment fund performance. The study analyzed both qualitative factors like fund size, expenses, and age as well as quantitative metrics like Jensen's alpha and information ratio. The key findings were:
- For developed markets, larger funds with lower expenses tended to outperform. But for emerging markets, smaller funds did better due to differences in liquidity.
- Jensen's alpha and information ratio best predicted future performance of developed market equity funds over shorter time periods.
- Past performance was informative over 2 years but less so over 1 year due to noise. Fund selection should focus on factors predicting shorter term outperformance.
Performance emergingfixedincomemanagers joi_is age just a numberbfmresearch
1) Younger fixed-income managers tend to outperform older, more established managers in terms of gross returns. Returns are significantly higher for emerging managers in their first year and first five years compared to later years.
2) The study examines 54 fixed-income managers formed since 1985 that had majority employee ownership. Most were formed before 2000, when barriers to entry increased.
3) Business risk is low for emerging managers, as only 6.8% of the 88 examined managers are no longer in business. Higher first-year and early-period returns for emerging managers indicate they provide alpha during their hungry startup phase.
This document analyzes different categories of active mutual fund management based on measures of Active Share and tracking error. It finds that the most active stock pickers have outperformed their benchmarks after fees, while closet indexers and funds focusing on factor bets have underperformed after fees. Performance patterns were similar during the 2008-2009 financial crisis. Closet indexing has become more popular recently. Fund performance can be predicted by cross-sectional stock return dispersion, favoring active stock pickers when dispersion is higher.
The document summarizes findings from the Standard & Poor's Indices Versus Active Funds (SPIVA) Scorecard, which compares the performance of actively managed mutual funds to relevant benchmarks. Some key points:
- Over the past 3 years, the majority (over 50%) of actively managed large-cap, mid-cap, small-cap, global, international, and emerging market funds underperformed their benchmarks.
- Over the past 5 years, indices outperformed a majority of active managers in nearly all major domestic and international equity categories based on equal-weighted returns. Asset-weighted averages also showed underperformance in 11 out of 18 domestic categories.
- For fixed income funds, over 50% under
This document summarizes research on the relationship between portfolio turnover and investment performance. Recent studies have found no evidence that higher portfolio turnover leads to lower returns, as was previously thought. Trading costs have declined over time, and portfolio turnover is not a good proxy for actual trading costs, which depend more on trade size and type of security traded. A 2007 study directly estimated trading costs and found no clear correlation between costs and returns. The author's own analysis of mutual funds from 2007-2008 also found little relationship between turnover and performance. Therefore, advisors should not assume higher turnover means lower returns.
This document discusses using active share and tracking error as measures of portfolio manager skill. It defines active share as the percentage of a fund's portfolio that differs from its benchmark index. Tracking error measures systematic factor risk by capturing how much a fund's returns vary from its benchmark. Research shows funds with high active share and moderate tracking error tend to outperform on average. The document examines how active share and tracking error can help identify skillful managers by focusing on their portfolio construction process rather than just past returns.
This document is a guide to the markets published by JPMorgan that provides data and analysis across various asset classes including equities, fixed income, international markets, and the economy. It includes sections on returns by investment style and sector for equities, economic indicators and drivers, interest rates and other data for fixed income, international market returns and valuations, and asset class performance and correlations. The guide contains over 60 charts and analyses global and domestic financial trends and investment opportunities.
The document discusses whether the concept of "Alpha" is a useful performance metric for investors. It makes two main arguments:
1) Alpha alone does not determine if a portfolio has superior risk-adjusted returns, as portfolio volatility and correlation to benchmarks also influence risk-adjusted returns.
2) Alpha is dependent on leverage - a higher reported Alpha could simply be due to using leverage rather than superior investment skill.
The document concludes that Alpha is a misleading performance measure and not suitable as the sole metric, especially for investors concerned with total risk and returns rather than just a single return component.
Fis group study on emerging managers performance drivers 2007bfmresearch
This study examined the performance of emerging investment managers over three years ending in 2006. It found that:
1) For large cap managers, increased firm assets were negatively correlated with risk-adjusted returns for core and growth strategies, but not for value. This may be because increased assets led to less concentrated core portfolios, lowering returns.
2) For small cap managers, risk-adjusted returns were highest for firms with less than $500 million in assets, possibly due to added resources like analysts. Returns leveled off between $500 million and $1 billion, and declined above $1 billion.
3) Having more research analysts was consistently positively correlated with higher risk-adjusted returns across strategies, while the impact
The document discusses Barclays' process for evaluating and selecting investment managers. It states that identifying the right asset allocation and implementing it properly are both important for achieving investment goals. The process involves both science, through a formal and structured methodology, and art, by applying judgment and philosophy. Barclays aims to identify managers most likely to perform well through rigorous due diligence and ongoing monitoring. The paper will explain Barclays' comprehensive approach to manager analysis, selection, and review.
Active managementmostlyefficientmarkets fajbfmresearch
This survey of literature on active vs passive management shows:
1) On average, actively managed funds do not outperform the market after accounting for fees and expenses, though a minority do add value.
2) Studies suggest some investors may be able to identify superior active managers in advance using public information.
3) Investors who identify superior active managers could improve their risk-adjusted returns by including some exposure to active strategies.
This document summarizes recent academic research on active equity managers who deliver persistent outperformance. It discusses studies finding that:
1) While the average equity manager underperforms after fees, a minority of managers have demonstrated persistent outperformance that cannot be attributed to chance alone.
2) Managers with higher "active share" (the degree to which their portfolio composition differs from the benchmark) tend to generate greater risk-adjusted returns.
3) Managers with lower portfolio turnover and a focus on strong stock selection, rather than market timing, are more likely to outperform over time.
The document evaluates how Brown Advisory's investment approach aligns with the characteristics identified in these studies as being associated with persistent
The document discusses China's transition to a consumer-driven economy. It provides analysis from CLSA China Macro Strategist Andy Rothman on trends in China's economy including the declining importance of exports, strong growth in domestic consumption, increasing incomes driving spending, and continued growth in infrastructure investment. The analysis suggests China's economy remains healthy and growing despite slowing external demand.
This report provides an analysis of defined contribution retirement plans based on 2010 Vanguard recordkeeping data. Some key findings include:
- Median and average account balances reached their highest levels since tracking began in 1999, recovering from market declines.
- Use of target-date funds as investment options and default investments continues to grow significantly, with 42% of participants using them and 20% wholly invested in a single target-date fund.
- Professionally managed investment options like target-date funds are being used by an increasing number of participants, with 29% solely invested in an automatic investment program in 2010 compared to just 9% in 2005.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
This study explores performance persistence in mutual funds. The authors find:
1) Funds that perform relatively poorly compared to peers and benchmarks are more likely to disappear, indicating survivorship bias can be relevant in mutual fund studies.
2) Mutual fund performance persists from year to year on a risk-adjusted basis, though much of the persistence is due to repeated underperformance relative to benchmarks.
3) Persistence patterns vary dramatically between time periods, suggesting performance is correlated across managers due to common strategies not captured by risk adjustments. Poorly performing funds also persist instead of being fully eliminated by the market.
This study examines persistence in mutual fund performance over 1962-1993 using a survivorship-bias-free database. The author finds:
1) Common factors in stock returns and differences in mutual fund expenses explain almost all persistence in mutual fund returns, with the exception of strong underperformance by the worst-performing funds.
2) The "hot hands effect" documented in prior literature is driven by the one-year momentum effect in stock returns, but individual funds do not earn higher returns from actively following momentum strategies after accounting for costs.
3) Expenses have a negative impact on performance of at least one-for-one, and higher turnover also negatively impacts performance, reducing returns by around 0.95
This paper examines the relationship between mutual fund manager ownership stakes in the funds they manage and the performance of those funds. The author hypothesizes that greater manager ownership will be positively associated with fund returns and negatively associated with fund turnover, as higher ownership would better align manager and shareholder interests by reducing agency costs. Using a dataset of manager ownership disclosures from 2004-2005, the author finds that funds with higher manager ownership had higher returns and lower turnover, supporting the hypotheses. However, manager ownership was not related to a fund's tax burden.
Information ratio mgrevaluation_bossertbfmresearch
This document discusses using the Information Ratio (IR) to evaluate mutual fund managers. The IR measures excess return over a benchmark relative to excess return volatility. While commonly used, the IR has limitations that depend on benchmark choice, data frequency, and fund return distributions. The document aims to empirically analyze IR characteristics across different asset classes and countries to determine if it is a reliable performance measure or if guidelines are needed for its use.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.