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Our research shows investment strategy blogs are not exactly taking the
financial advisory world by storm. Susan Weiner looks at the niches
where blogs have found a place, and we show a list of top investment strategy blogs read by advisors.
Two weeks ago we highlighted research by Russell Wermers and his
co-authors who used statistical techniques to show that skillfulness among active mutual fund managers has
declined steadily since 1990. Last week we published two
letters in response to these findings, including one by Tom Howard, who
claims that manager skill is increasing over time. Round three of
this debate consists of six new responses.
Four readers wrote in response to
Howard's claims, addressing issues such as whether managers with
shorter performance track records are responsible for increased alpha, and
whether the methodology used by Howard is appropriate. Howard responds to these readers, defends
his methodology, and explains why, among other things, it is easier to find
skill among managers with shorter histories. Lastly, Dave Loeper uses the analytical tools
offered through his FundGrades product to call
into question many of the claims made by Howard.
Tom Lydon is Editor of the
highly popular web site and newsletter etftrends.com. Our interview
with Lydon identifies the important
trends in the ETF industry and the impact they will have on
financial advisors.
We look at trends in index fund and ETF
usage by high- and ultra-high net worth investors using data
from the Advisor Perspectives universe.
Lastly, we highlight some recent Advisor
Market Commentaries.
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Investment Strategy Blogs Slow to Influence Financial
Advisors
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To the extent that investment strategy blogs are making inroads into the
wealth management community, it is in niche applications where, for
example, they influence "buy" and "sell" decisions of
advisors. Our discussions with advisors explain this finding, and we
identify the most popular blogs in the advisory world.
Read the article
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Letters to the Editor: Luck versus Skill: Round Three
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Four readers respond to the data presented by Tom Howard of AthenaInvest
last week showing that alpha, and hence skillfulness, has increased since
1990. They controvert Howard's findings, and question whether
skillfulness can be meaningfully identified among managers with short
performance histories.
Read the article
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Letter
to the Editor: Luck versus Skill - Tom Howard Responds
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Tom Howard responds to the four letters above, and defends his findings
that alpha is increasing among active US
equity mutual fund managers. He further contends that it is easier to
find alpha among managers with shorter performance histories, and that the
current environment favors active investing over indexing.
Read the article
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Letter to the Editor: When Will Objectivity Enter
the Active versus Passive Debate?
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Dave Loeper, CEO of FundGrades, argues there is a lot of marketing going on
by both "passive pundits" and "active advocates"
instead of objective research. Loeper uses FundGrades data to
question Tom Howard's claims that alpha is increasing over time, and asks
whether advisors are making the right decision going with active managers,
when evidence of skillfulness is merely an "unprovable
intuition."
Read the Article
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The Top Trends to Follow in ETF Investing
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Tom Lydon is a regular contributor to The
Wall Street Journal, Fox Business, Business Week, CBNC, and Barron's, as well as leading authority
on ETFs (Exchange Traded Funds). Lydon discusses the impact of trends
in the ETF industry, including active ETFs, frontier markets, currencies,
commodities, ETNs, and alternative energy.
Read the Article
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Index Fund and ETF Usage in the Advisor Perspectives
Universe
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Advisors, who manage assets for high- and ultra-high net worth investors,
hold very few assets in index funds and ETFs, and a markedly small
percentage of assets in funds that track broad-based market indices.
We look at data and trends within the Advisor Perspectives universe.
Read the Article
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Highlights
from Advisor Market Commentaries
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We highlight two recent submissions to Advisor Market
Commentaries:
John Mauldin finds little support for the paradigm that developed and
emerging markets are decoupled from one another.
Read the Commentary
Ray Ferrara of the ProVise Management Group covers a range of topics in his
ProVise bullets, including changes to the tax code, inflationary trends,
and the prospects of higher interest rates.
Read the Commentary
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Advertise in Advisor Perspectives
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advisors. See how you can deliver your message to our sophisticated
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Advisor
Perspectives
Box 380
Lexington, MA 02420
(781) 376-0050
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