On February 24, 2022, Harbor Capital, in partnership with Irrational Capital, launched the Harbor Corporate Culture ETF (HAPY). The fund invests in companies with the strongest employee-employer relationships. As the ticker implies, in firms where the employees are happy. It is a passive fund whose investment universe is Continue reading
The Federal Reserve is raising rates to slow the economy, reduce inflation, and reduce bond purchases (Quantitative Tightening). The International Monetary Fund and World Bank are lowering forecasts of global growth, and the Russian invasion of Ukraine is further disrupting supply chains and raising geopolitical tensions. I am at my neutral allocation of 50% to stocks but have shifted away from the most volatile funds and toward more defensive funds that do well during the late stage of the business cycle and higher inflation. This article describes Continue reading
Artisan Partners launched its Artisan Global Unconstrained and Artisan Emerging Markets Debt Opportunities Funds on April 7. Michael Cirami will be the Lead Portfolio Manager while Sarah Orvin will serve as the Portfolio Manager of both funds. Both Mr. Cirami and Ms. Orvin previously worked for Eaton Vance Management.
Charles Schwab has filed filings to offer Direct indexing, which involves direct ownership of securities and thus can involve a greater level of tax management, sometime in April. Schwab’s direct indexing will have an account minimum of $100,000 and will charge a fee of 40 basis points. Initially, investors will have access to Continue reading
Dear friends,
Spring is a time when we celebrate the small and uncertain signs of hope. Weighed down by the exhaustion of war and politics, pandemic and winter, we look happily at the first crocus to spring which shoulders its way through the autumnal leaf mold. We’re reluctant to invest too much in it, knowing that winter has not yet suffered its final defeat. (Here, anyway. Last Wednesday’s upper 60s was followed by Thursday’s measurable snow.) Continue reading
A quick sampling of recent headlines …
Step One: Find the right recipe.
Indexes are recipes. By that, I mean they’re really precise sets of instructions that direct you in what ingredients, in what amounts, need to be treated, in what way to achieve a particular, predictable outcome. In investing, as in cooking, recipes are relatively recent inventions. Once upon a time, both activities were dominated by the notion that “experienced old guys do their thing, the rest of us watch in awe.”
Take luce or tench or fresh haddock, & boil them & fry them in olive oil. And then take vinegar and the third part sugar & onions minced small, & boil all together, & mace & cloves & cubeb. And lay the fish in dishes & pour the sauce above & serve it forth. Continue reading
When I came across a quote by Peter Lynch on how passive fund investors were making a mistake, I had two choices: to sweep his comments under the rug or evaluate the validity of them. In the article below, we will look at:
The takeaway: Outperforming MFs do exist but their taxable distributions are a larger drag than expected.
We’re inviting you to Continue reading
Devesh and I have an ongoing conversation about the value of active managers. He thoughtfully runs through the arguments – from consistency to tax efficiency – that led him to conclude, “not much value there.” Cool and sensible.
If you want to join the conversation but start with somewhat greater sympathy for the role of active managers, you might consider five arguments. Continue reading
I have expressed my intention to retire in the next few months with the specter of stagflation looming. I have studied the 1960s to 1970s stagflation period since I lived through these times and know that they are secular. Federal Reserve Chairman Jerome Powell recently described the potential for inflation to last for an extended period of time:
…the risk is rising that an extended period of high inflation could push longer-term expectations uncomfortably higher, which underscores the need for the Committee to move expeditiously as I have described. (Powell Says ‘Inflation Is Much Too High’ And The Fed Will Take ‘Necessary Steps’ To Address,” CNBC, 3/21/2022) Continue reading
Since the number of funds we can cover in-depth is smaller than the number of funds worthy of in-depth coverage, we offer one or two managers each month the opportunity to make a 300-word pitch to you. That’s about the number of words a slightly manic elevator companion could share in a minute and a half. In each case, I’ve promised to offer a quick capsule of the fund and a link back to the fund’s site. Other than that, they’ve got 300 words and precisely as much of your time and attention as you’re willing to share. These aren’t endorsements; they’re opportunities to learn more.
It’s someday. Continue reading