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Bond Guru Bill Gross: Current Market Risk at the Level of Pre-2008 Crisis
Asset Management
Bill Gross has not seen U.S. market risk levels this high since just before the 2008 financial crisis, Bloomberg reports.  The 73-year-old Bond King believes investors are paying dangerously high prices for low returns. “Instead of buying low and selling high, you’re buying high and crossing your fingers,” he told the Bloomberg Invest New York summit today. According to Gross, asset prices are being
Revisiting Buffett's 1999 Warning: Interest Rates, Orgies, and Value
Asset Management
Dear Fellow Investors, We thought it would be very helpful to review Warren Buffett’s argument in 1999, the last time there was very high expectations attached to technology stocks and to the overall level of common stock prices. We will reference Buffett’s quotes by the year he said them. The sections labeled 2017 offer our current observations on the markets
Funds (Finally) Outperform Thanks to Massive Allocation to FANG
Asset Management
What has been the impetus for a host of active mutual fund outperformance against the S&P 500 benchmark in early 2017? Exposure to the Information Technology sector, a May 26 Goldman Sachs report observes. But with this recent outperformance in the rear view mirror, fund managers are reducing exposure to the sector that delivered the mutual fund outperformance, bringing their exposure
Soc Gen: Active Managers Might Be Responsible for Rise of Passive AUM
Asset Management
Passive Investing and the role of active managers  last updated By Mark Melin May 26 8:00 PM In the battle between active and passive investing, passive has been the overwhelming winner as of late, with projections it will overtake active in the US by 2024. But that still doesn’t mean active is dead. In fact, active management still continues to dwarf
Larry Fink Doubles Down on Bearish Outlook For U.S. Economy
Asset Management
After saying in an interview a month ago that he’s seeing “some warning signs that are getting darker” for the U.S. economy, BlackRock CEO Larry Fink reiterated his pessimism at an investing conference on Tuesday, while saying that he expects stronger growth in Europe by comparison, Bloomberg reports. Fink's pessimism over economic growth in the U.S. is tied to continued uncertainty
Tweedy, Browne: How to Invest for the Long Term
Asset Management
There are few investment firms out there that have a history that’s as rich as that of Tweedy, Browne.Founded in 1920 as a dealer of closely held securities, the firm has gone from strength to strength, and while it has changed its primary line of business during its 97-year history, the company’s principles remain unchanged. Value investing also remains at
The Top 6 Billion-Dollar US Buyout Funds of the Past Five Years
Asset Management
Any buyout fund closed in the past five years is still very much in its adolescence. Plenty of deals are yet to be done, both acquisitions and divestments, that will go a long way toward shaping the returns ultimately paid out to LPs. But that doesn’t mean current data about how such private equity vehicles are performing is useless. In
The Active Versus Passive Performance Debate Is Nonsensical
Asset Management
Introduction One of the most hotly contested debates in finance is the argument over which is better – active or passive investing. Moreover, this debate has spurred numerous academic studies that claim to identify whether passive outperforms active investing or vice versa. As a result, the current popular opinion suggests that passive outperforms active investing the majority of the time.
PE, Pints and PBR: Investors Pouring Money Into Beer Industry
Asset Management
While corporate brewers continue to shape the beer industry with high-profile acquisitions, private equity firms are quietly making their own splash. moisemarian / PixabayOverall beer sales reached $107.6 billion in the US last year, according to the Brewers Association, andmacrobrewers like Anheuser-Busch have been rapidly consolidating an industry that’s seen the number of craft breweries overflow. So where exactly does
Fund Managers’ Current Asset Allocation
Asset Management
Summary: A tailwind for the rally since February 2016 has been the bearish positioning of investors, with fund managers persistently shunning equities in exchange for holding cash. Fund managers have become more bullish, but not excessively so. Profit expectations are near a 7-year high and global economic growth expectations are near a 2-year high. However, cash balances at funds also