We have written research papers on topics including asset allocation, risk factor investing, macro economics, hedge fund replication and tax efficiency. A small sample of our white papers are included below. Please contact us if you would like to receive our other research.
The right strategy for winning any game requires first understanding the competitive dynamics of the game. One model is that of a “Winner’s Game” versus a “Loser’s Game”. The competitiveness of global capital markets make them a Loser's Game where success is achieved by those who make the fewest mistakes.
Experienced investors understand that managing risk is the most important driver of long-term success. Yet traditional asset allocation models are blind to this fact, as they tend to bet on a single asset class, namely equities, for their success.
Diversification is not the same as more holdings, and index funds are not the lowest cost option. Fundamental diversification is about holding a few high quality assets that additionally protect against the major environments of wealth destruction.
How good must an active manager be in order to outperform a buy and hold strategy over time?
Smart beta and especially low volatility investing, has become the latest fad in the investment management business. We show low volatility strategies to simply be a bet on falling interest rates.
Equities of commodity producer businesses provide a uniquely diversifying exposure to traditional portfolios of equities and fixed income because they offer protection against rising inflation.
It is commonly said that the only free lunch in investing is diversification. We are the first to agree that a well thought out and fundamentally informed strategy for diversification is critical. But diversification has its limits, especially when confused with volatility reduction, and when taken too far tends only to increase complexity and decrease return.