Mutual Fund Tax Myths

Equity markets have performed exceptionally well over the last five years and broad-based stock indexes are trading near their all-time highs. After this strong run, taxes, and the tax-efficiency of mutual funds, have understandably become a topic of increasing regularity. Given this renewed attention, this Commentary shares our thoughts on the tax efficiency of mutual funds, including some popular myths. We also discuss how we believe some of these myths can be better managed, and even taken advantage of, to improve after-tax returns with a more thoughtful investment approach. » request the full whitepaper

The Perils of Predictions

For as long as there have been investable markets, there have been participants making predictions. We believe it is extremely difficult to correctly make short-term predictions, even for the so-called experts. Further, even making an accurate prediction doesn't mean that markets will react accordingly. As such, it is clear to us that in order to be a successful investor over time one must not focus on short-term predictions on economic or political events, and should instead make longer term assessments that incorporate fundamental and investor sentiment factors. » request the full whitepaper

A Bull Market for Fear

Typically we do not provide 'commentary' on recent market activity but rather focus on what lies ahead. However, given the recent material declines in most risk assets and the peculiar behavior in some areas of the capital markets, we thought it worthy to give our brief insight. » request the full whitepaper

Client Service Commentary

As part of the Economic Stabilization and Recovery Act of 2008, the Federal Government fundamentally changed the cost basis reporting requirements for firms that custody assets. These changes affect cost basis information for capital gains beginning with 2011 tax filings. We believe the new regulations are a benefit to our clients, and we outline the preparation we have completed as a result of these regulatory changes. In addition, we have outlined the potential challenges, and the questions every person should be asking their custodian and/or advisor. » request the full whitepaper

The Cost of Modern Portfolio Theory (MPT)

Modern Portfolio Theory has long been regarded as the foundation for asset allocation decision-making. The framework provides a precise numerical solution to portfolio diversification. We believe that there are fundamental flaws in both its assumptions and in its implementation, leading to sub-optimal results for clients. Conversely, we are thoughtful in how we approach diversification, knowing there is no substitute for common sense. » request the full whitepaper

Have Hedge Fund-of-Funds Added Any Value?

Hedge Fund of Funds (FoF) have expanded over the past two decades to their peak in 2008. These investment vehicles provide investors with broad exposure to the hedge fund industry, charging an additional layer of fees for their services. Given the additional costs and risks assumed, we believe that hedge FoF's have not exhibited any added value compared to the broad market indexes. » request the full whitepaper

Remember Goldilocks?

The phrase "Goldilocks" typically refers to a period in which the economy is growing, but not too strong, while accompanied by a low and stable inflationary environment. Over the past year, most pundits and investors highlighted the potential risks of a double-dip recession for the global economy, or the dangers of hyperinflation. However, no one even remotely suggested the potential for a Goldilocks environment, which we believe was not reflected in the market until mid-February. » request the full whitepaper