Is That Hedge Fund Really Worth It?

Is That Hedge Fund Really Worth It?

Simon Lack, author of The Hedge Fund Mirage, and previously a member of J. P. Morgan’s hedge fund due-diligence team in the early 1990s, argues that hedge funds are overpriced, non-transparent, and provide poor returns over time.  During a talk at the CFA Institute’s annual conference in Seattle earlier this year he explained that hedge…
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For Higher Investment Returns, Get Help!

Aon Hewitt, the global benefits consulting firm, analyzed 14 defined contribution plans representing over 723,000 individual participants over the seven-year period from 2006 through 2012 to determine how participant behavior affected portfolio risk and returns.  Their finding: those who sought help with their investments did significantly better than those who managed their portfolios on their…
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Are Index Funds Really Less Expensive?

When it comes to investing, there are many things we cannot control.  For example, we cannot control, let alone predict, investment returns.  On the other hand, there are things we can and should control, such as the costs of our investments.  The popularity of index-based mutual funds and exchange-traded funds (ETFs) has risen dramatically over…
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Is the Stock Market Really Rigged?

There’s been quite a buzz in the media and in Washington since Michael Lewis appeared on “60 Minutes” a number of weeks ago asserting that the stock market is rigged.  The topic was high frequency trading (HFT), and for those that missed the broadcast (or the subsequent media frenzy), it’s a combination of high speed…
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How Market Timing Affects Portfolios

This is a follow-up to my post last October entitled “Should You Increase Equity Allocation in Retirement?”  (https://www.cognizantwealth.com/2013/10/24/should-you-increase-equity-allocation-in-retirement/).  At that time I cited research by Pfau & Kitces suggesting that retirees begin their retirement with their investment portfolio allocated very conservatively, and then gradually increase the allocation to stocks as they age.  In this post…
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Is the Next Market Crash Imminent?

Robert Isbitts of Sungarden Investment Research is sounding alarm bells regarding the following numerical coincidence he discovered: From September 1, 1995 until the peak of the tech-bubble on August 18, 2000, the S&P 500 return (excluding dividends) was 165%. From March 6, 2009 (the Great Recession bottom) through February 26, 2014 (around now), the return…
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