Category Archives: Equities

Does Past Performance Matter?

The phrase “past performance is not a guarantee of future results” has never rung more true for active mutual funds.  Our semi-annual publication, the Persistence Scorecard, takes a look at the performance of top quartile active funds over three- and five-year consecutive 12-month periods.  Based on the most recently released report, out of 269 large Read more […]

When Diversification Fails

Diversification means different things in different contexts.  We can speak, for example, of diversification within an equity portfolio — i.e., of holding a number of stocks with potentially-offsetting risks, as opposed to concentrating on only one issue or on a handful of similar stocks.  Or we can think of diversification across asset classes — e.g., Read more […]

Passive Pensions

We read this morning that the California Public Employees’ Retirement System (CalPERS) is considering increasing its commitment to passive equity vehicles. This follows, by less than two weeks, a study suggesting that public pension funds generally could improve their performance by doing exactly what CalPERS is reported to be considering. Of course whenever you speak about Read more […]

What’s in a Name

Picking the right ETF among the hundreds that are currently available is certainly a formidable task for many investors – one that has been made more difficult by iShares recent announcement that it is removing index names from a number of its ETFs. Why should this raise concerns for investors and for the financial industry Read more […]

Getting What You Pay For

Today’s Wall Street Journal, among others, reported on a recent study by the Maryland Public Policy Institute arguing that the public pension funds which pay the highest fees haven’t reaped the highest investment returns.  In fact, the study shows, it’s just the opposite — for the 5 years ended June 2012, the 10 states which Read more […]

Dividends: Love’m or Leave’m

Now that the short-term speculators have left the dividend market, core investors can get back to their boring stocks, collecting their tax advantaged yield (you may not like the increase to 20% from 15%, but I remember when it was 70%, and that was before New York State, City or unincorporated business tax got hold of Read more […]

A Conventional Down Month

Whenever you want to argue that rising interest rates are bad for the stock market, count June 2013 as a point in your favor.  The long end of the US Treasury yield curve notched a -4.07% decline in June (following May’s -6.71% tumble), as rates on the S&P/BGCantor 20+ Year US Treasury Index rose by 66 Read more […]

Stanley Cup Index: What happened to the holy grail?

Congratulations to the Chicago Blackhawks on their awesome win last night! I must admit I was very excited watching the most amazing finish I have ever seen in hockey, but as a commodity lady my first thought was about the metal in the Stanley Cup and what is it worth, especially given the current environment of Read more […]

Volatility: Love It or Leave It

Investors are rightly concerned about the future course of equity prices, especially in the context of the Federal Reserve’s bruited tapering of QE3, and it’s obviously true that equity market volatility has increased sharply since the beginning of May. Rising volatility typically means lower stock prices — the correlation of the S&P 500 and the Read more […]