Conventional Firms May Destroy +30% of Retail Investor Returns Annually

In a low returns environment, private banks and conventional financial advice firms continue to charge 1% to 2% in fees, irrespective of portfolio performance. Common sense suggests that the lower the costs are for investors, the higher their share of an investment’s returns will be. In addition, what remains invisible is the implicit fees on returns caused by inefficient model portfolios and poor asset allocation decisions. This further detracts another 0.5% annually from investor returns, which investors don’t see.

A +1.5% cost over a typical 5% annualized return suddenly becomes a meaningful number. It suggests a +30% value destruction for the price of having a ‘personalized’ relationship with a friendly financial advisor.

Probably much too high a price to pay?



Active Equity Management

Active equity management explores different market inefficiencies with the goal of achieving better adjusted returns for investors. In order to achieve this goal, successful active investors need to build and maintain their information edge, insight edge, implementation edge, and conviction edge.

Active Equity Management provides a comprehensive understanding of technical, fundamental, and economic signals used in equities trading. It explores in detail how such signals may be created, rigorously tested and successfully implemented. Filled with practitioner insights derived from years of experience in the hedge fund industry, and supported with academic theory, Active Equity Management provides an in-depth review of basic financial concepts, examines data sources useful for equities trading, and delves into popular seasonal effects and market indicators. It also highlights best practices in model development, portfolio construction, risk management, and execution. In combining topical thinking with the latest trends, research, and quantitative frameworks, Active Equity Management will help both the novice and the veteran practitioner understand the exciting world of equities trading.
* Covers extensive data sources to build investing information, insight and conviction edges

* Examines seasonal effects, explores economic & market indicators to make better trading decisions

* Addresses technical and fundamental signal construction and testing

* Explains dynamic factor timing strategies, portfolio construction and management

* Reviews standard approaches for trade-level and portfolio-level performance measurement

* Discusses implementation, trading cost analysis and turnover management


How Inefficient is Your Portfolio?

Here is how you figure out.

  • Aggregate your investment accounts.

We aggregate your held away assets by linking your investment accounts. A holistic view of your holdings is the place to begin to discover strategic asset allocation inefficiencies.

  • Discover your economic and market risks.

Our proprietary technology searches, recognizes, classifies and instantly maps more than four million traded financial instruments to over fifty asset sub-classes. This helps you cut through funds and securities and see the world in terms of asset classes.

  • Compare your market views with others.

We monitor research from wirehouses, investment banks, consulting firms to help you arrive at consensus long term capital market assumptions. This becomes a valuable starting point for you to validate and express your own market beliefs.

  • Express your investing preferences.

We help you impose your constraints on specific asset type exposure, aversion or preference for illiquidity and alternative investments, your investing horizon, time varying risk preferences and other choices. This creates personalization.

  • Analyze and optimize your portfolio.

We highlight strategic asset allocation inefficiencies to enable comparison between recommended choices with your current allocation. This provides detached objective portfolio analysis.

  • Implement your portfolio.

Our proprietary order management system securely routes trade orders to your broker to execute. We further provide real-time portfolio data from your brokerage firm. This provides the most current picture of your portfolio’s forward-facing characteristics.