Category: Investment Methodology

174 posts categorized as "Investment Methodology"

Defense Wins Championships

January 2, 2019

Content Provided by Kostya Etus, CFA, Senior Portfolio Manager There are several variables investors can control when investing, including the cost, time until withdrawals, how we react to volatility, and how much risk we take on. Unfortunately, we tend to focus most on returns, which we have no control over. One of the most important…

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Give Thanks

December 13, 2018

Content Provided by Michael Hadden – Investment Research Analyst In this season of giving, I like to reflect on what I am thankful for. And as an investor, I can think of a few things I am extremely thankful for. While they may not appear to be good candidates for gratitude at first glance, these…

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Win by Losing Less

November 28, 2018

Content provided by Grant Engelbart, CFA, CAIA, Director of Research & Senior Portfolio Manager Risk Budgeting focuses on the management of volatility in client portfolios. This manifests itself in the most apparent form for clients during market corrections, where “risk” and “volatility” move from being vague statistical measures to “Wait, how much money did I…

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Our Worst Performing Household

October 25, 2018

Content provided by Grant Engelbart, CFA, CAIA, Director of Research & Senior Portfolio Manager I normally would never single out individual investor performance, but in this case I believe it’s necessary. Earlier this year, on the same day, two accounts in the same household were invested in two different CLS strategies with a 100 Risk…

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Happy Birthday, Warren

September 4, 2018

Content provided by Grant Engelbart, CFA, CAIA, Senior Portfolio Manager & Co-Director of Research Warren Buffett turned 88 years old on Thursday, August 30. Quite possibly the most famous value investor of all time, Buffett took control of Berkshire Hathaway in 1965 (“that is, when current management took over”). Since then, the company has transformed…

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ESG Investing: Look for Progress, Not Perfection

August 23, 2018

Content Provided by Rusty Vanneman, CFA, CMT – Chief Investment Officer Recently, I took up paddle board racing. It has appeal in a variety of ways: the discipline that goes along with training for an event on the calendar, the competitive aspect of the budding sport, plus it’s a lot of fun! Paddle boarding is…

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Risk Budgeting Basics: Can U.S. Treasuries be Riskier Than Emerging Market Stocks?

August 22, 2018

Content Provided by Case Eichenberger, CIMA – Client Portfolio Manager Risk can be defined in multiple ways: beta to the stock market, standard deviation of returns, relative standard deviation to the stock market, probability of catastrophic loss, probability of not realizing goals, or probability of not sticking with investments, among others. None are correct or…

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Sir John Templeton: The Humble Approach

July 10, 2018

Content Provided by Rusty Vanneman, CFA, CMT – Chief Investment Officer One of the most important days in my development as an investment manager occurred in the spring of 1987. It was during my undergraduate days at Babson College. It was Founder’s Day, which is Babson’s oldest tradition, a day established to recognize the school’s…

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Behind the (Research) Curtain

June 29, 2018

Content provided by Grant Engelbart, CFA, CAIA, Portfolio Manager There are five areas of analysis we utilize to review investment ideas (see our Risk Budgeting White Paper pages 9-10). To help our readers understand these analyses and our investment processes, let’s take a look at a real life example applicable to many, if not all,…

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Reason #29 Not to Use Stock-to-Bond Ratios to Manage Risk

June 11, 2018

Content Provided by Case Eichenberger, CIMA, Client Portfolio Manager Income-Based Portfolios Which portfolio would you expect to be riskier? A or B? Or, put another way, which portfolio would you expect to be more volatile?   Tough call, isn’t it? They both look very similar in terms of stock-to-bond ratios. Let’s call it a wash…

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