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Advisor Perspectives
Insights into the world of high- and ultra-high net worth investing
April 29, 2008- Vol 2, Issue 18
 
 
 
 
 
 
 
 
 
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Phil DeMuth and Ben Stein's latest book is Yes, You Can Supercharge Your Portfolio.  DeMuth discusses some of the important insights in the book, including how advisors should utilize risk tolerance assessments, and the  level of diversification in Berkshire Hathaway's portfolio.  We asked Stein about one of his more outspoken views - that the housing market has not collapsed.

Michael Steinhardt is a legendary investor and the Chairman of Wisdom Tree Investments.  Steinhardt spoke about current market conditions and the history of the hedge fund industry.

Sovereign Wealth Funds are the focus of much controversy and are becoming the target of protectionist measures.  Robert Pozen, Chairman of MFS Investment Management, provides his views on threats posed by these funds.  We also provide our analysis of the implications of Sovereign Wealth Funds for financial advisors.

We look at changes in the Most Popular Mutual Funds over the past 12 weeks, and show the funds that have experienced significant gains and losses over this period.

We have three letters to the Editor: a further discussion of the analogy between coin flipping exercises and the debate between active and passive management, a response to our article on whether style boxes inhibit performance, and some thoughts on the recent Tiburon conference.

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Our Interview with Phil DeMuth and Ben Stein

DeMuth and Stein's latest book covers a range of important topics for advisors: the role of risk tolerance assessments, how  to utilize Monte Carlo simulation, and the lessons in diversification offered by Berkshire Hathaway's portfolio.  Ben Stein's views are often controversial, and he discusses one of his more outspoken positions - that the housing market has not collapsed.

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Michael Steinhardt on Today's Markets and the Evolution of the Hedge Fund Industry

Michael Steinhardt is the Chairman of Wisdom Tree Investments.  In 1967 he founded a hedge fund that achieved a 24% compount average annual return (more than twice the S&P 500) over a 28 year period.  Steinhardt offers his views on the current market and the history of the hedge fund industry.

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Sovereign Wealth Funds: Perceptions and Realities

Robert Pozen, Chairman of MFS Investment Management, examines the arguments being made in support of protectionist measures targeting Sovereign Wealth Funds, and shows why these funds pose relatively low risk.  We also provide our own analysis of the implications of Sovereign Wealth Funds for financial advisors.

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Changes in the Most Popular Mutual Funds

The Most Popular Mutual Funds in the Advisor Perspectives universe represent the investment decisions of RIAs managing over $50 billion in assets.  We look at the changes in this list, and show which funds experienced significant gains and losses over the last 12 weeks.

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Letters to the Editor:  Coin Flipping and Active Management; Feedback on the Tiburon Conference

An article we ran several weeks ago has stimulated a debate on the topic of whether skillful active managers can be identified in advance, and what lessons can be learned from a coin flipping exercise.  We provide the latest installment in this debate.  A second letter considers the implications for financial advisors from the recent Tiburon CEO Summit XIV.

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Letter to the Editor: Do Style Boxes Inhibit Performance?

Our article last week on whether style boxes inhibit performance drew a response from two readers who contend that Strategy Based Investing (SBI) provides a way for advisors to exploit inefficiencies resulting from managers whose investment styles are artificially constrained.

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9 New Commentaries Available

Our Advisor Market Commentaries section continues to grow, with 9 new commentaries added in the last week.  Ron Brounes, of Brounes & Associates, is now providing his weekly commentary, as do several other firms, including Fortigent and Advisors Capital.  We are still offering a free book for new submissions.

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