Wealth Management Industry Destroys $400 Billion in 2020

2020 again demonstrated that RIAs, Private Banks, independent Broker Dealers, Wealth Management platforms and financial firms can’t provide quality advice to everyone profitably. Few customers want to pay for it, and many investors don’t trust financial advisors. Meanwhile, traditional forms of asset allocation advice are costly, inefficient, and impersonal. We estimate that retail investors lose more than $400 billion annually in advisor fees and portfolio inefficiencies. This value destruction is both explicit in typical 1% or higher advisory fees charged and implicit in 0.5% or more asset allocation inefficiency.  Moreover, these costs are in addition to other contracting frictions, product commissions and costs. To serve a broader audience, advisors put investors in cookie cutter, one size fits all “model portfolios,” which in turn commoditizes their own service and expertise. Model portfolios also fail to account for personal investment views, preferences, and limitations. Worse still, clients rarely know how inefficient their allocations really are and have no objective means to measure and value advisor performance.

Active Equity Management – Table of Contents

Never judge a book by its cover, but rather by its table of contents. Check out the TOC here and decide for yourself..

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.

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Citi Alternative Investments 2008 Journal—

How time flies! I had the privilege to lead thought leadership ( inter alia) at Citi during the tumultuous 2007 Global Financial Crisis.  During that period I also edited the Alternative Investments Journal for its corporate clients. I found this issue floating online – I wrote 3 out of the 5 articles here. All of them have stood the test of time, sans the piece on Asian Real Estate, which of course has come a long way since 2008. This Journal, discontinued after my departure, had some cutting edge investment pieces.