Category: Investment Methodology
188 posts categorized as "Investment Methodology"
Five Reasons to Keep Expectations Low for Market Returns
November 6, 2017
Content provided by Kostya Etus, CFA, Portfolio Manager “The light that burns twice as bright burns half as long, and you have burned so very, very brightly, Roy.” – Eldon Tyrell, Blade Runner (1982) As regular readers of the CLS blog may know, I love watching movies. But, I am often disappointed with great movies…
The Rise (and Fall?) of Bitcoin
November 2, 2017
Content provided by Marc Pfeffer, Senior Portfolio Manager During the technology craze and eventual bust in the late 1990s, investors — myself included — didn’t know what they were buying; they just knew the stock symbols. It was irrelevant whether the companies made money or not, or what the price-to-earnings ratios were. It was a…
Having Regret Doesn’t Pay!
October 26, 2017
Content provided by Paula Wieck, CFA, Portfolio Manager In early October, it was announced that Richard Thaler, renowned economist and theorist in behavioral finance, was awarded 2017’s Nobel Prize in Economic Sciences. Thaler, amongst other behavioral economists, such as Daniel Kahneman and Amos Tversky, have made tremendous contributions to this field of science, which has…
Think Big by Going Small
October 18, 2017
Content provided by Joe Smith, CFA, Senior Market Strategist Small-cap stocks have long offered investors opportunities to capture sizable gains either through index exposure or active management. The long-term excess return premium to small-caps has been well documented and exploited by investors for decades. This year, small-caps have generally lagged relative to the rest of…
The Biggest Risk in the Markets
October 12, 2017
Content provided by Rusty Vanneman, CFA, CMT, Chief Investment Officer At a recent panel, an advisor asked our portfolio managers what they believed to be the biggest risk in the markets today. As usual, I was proud of every response from our portfolio managers on the panel. We sounded smart, disciplined, and experienced. We should…
Market Performance Around Crisis Events
September 27, 2017
Content provided by Kostya Etus, CFA, Portfolio Manager Mr. Market may give a nod to a geopolitical crisis but is really more concerned with economic strength and corporate profitability. While a crisis may weigh on the economy, it is typically not the case. There have been a lot of headlines recently about North Korea, Venezuela,…
Q&A with Christopher Davis, Portfolio Manager at Davis Funds
September 15, 2017
CLS’s Chief Investment Officer, Rusty Vanneman, CFA, CMT sits down with hristopher Davis, a Portfolio Manager at Davis Funds and explores what it means to be a good individual investor, what characteristics a respectable financial advisor should possess, and what a financial advisor should look for in a professional money manager.
Currencies’ Impact on Portfolios (and My Honeymoon)
September 14, 2017
Content provided by Joshua Jenkins, CFA, Portfolio Manager Over the last year, currencies have been on the forefront of my mind, which is unusual. I’m not saying they are not important. In the short term, they definitely impact returns. Portfolio Manager Case Eichenberger recently wrote about that here. Over the long term, however, the impact…
Why Stock-to-Bond Ratios are Poor Measurements of Risk
August 31, 2017
Content provided by Joseph Smith, CFA, Senior Market Analyst Risk Budgeting makes CLS different in its ability to measure and manage risk in portfolios. Risk Budgeting is not the same as managing to a stock-to-bond ratio. Stock-to-bond ratios can lead to undesirable levels of risk for long-term investors. At CLS, we differ from our money-managing…
Some Trading Maxims That Influenced My Investing
August 18, 2017
Content provided by Rusty Vanneman, CFA, CMT, Chief Investment Officer Years ago, I worked with bond and currency traders around the world (mostly in New York City, Chicago, and London), providing trading recommendations and market commentary every 20 minutes during market hours. The work environment was fast-paced, fun, and absolutely awesome in terms of being…