Salient to Investors: Hedge fund stars and private equity CEOs get huge headlines, but few mutual fund managers of the sort that average Americans can invest with do. Neil Pardasani at Boston Consulting said advisers like to invest in fund brands that their clients know. Investors often stick with star
READ MORE... →Salient to Investors: James O’Shaughnessy of O’Shaughnessy Asset Mgmt said: Fidelity found that their best performing accounts were those of people who forgot they had an account with them. The shorter you hold a stock, the more likely you are to lose money. Barry Ritholtz found that when families fought over inherited
READ MORE... →Salient to Investors: The Weitz Value and Weitz Partners Value funds each have cash stakes close to 30 percent. The Yacktman Focused fund has 19 percent in cash. The Westwood Income Opportunity fund has 16 percent in cash, The IVA Worldwide Fund has 28 percent in cash, the GoodHaven fund has 33 percent in cash. Morninstar
READ MORE... →Salient to Investors: Jack Schwager writes: As long as no one cares about it, there is no trend. All markets look liquid during the bubble but illiquidity after the bubble ends matters more. Markets tend to overdiscount the uncertainty related to identified risks and underdiscount risks not yet identified. Low-quality
READ MORE... →Salient to Investors: Mark Hulbert writes: The small number of advisers who outperform the market rarely keep doing so, so choosing a recent market beater does not increase your odds of future success. Of the 51 advisers out of more than 200 tracked who beat the Wilshire 5000 Total Market
READ MORE... →Salient to Investors: Matt Schreiber at WBI Investments says limiting losses is critical to keeping with your investment plan. Morningstar says 40 of the 2,600 non-sector stock mutual funds it tracks have lost money in the 12 months through April 2013. Zheng Sun and Lu Zheng at University of California,
READ MORE... →Salient to Investors: Mark Hulbert writes: Avoid mutual funds whose recent performance has begun to slip, no matter how good their performance might have been in previous years. Favor funds with stellar recent returns, even if their longer-term performance is dismal. No Load Fund X is the best performing stock-mutual-fund
READ MORE... →Salient to Investors: Laurence D. Fink at BlackRock said we have not seen any large major change in attitude in bonds are not seeing the same investor appetite for long-dated bonds, which will persist for some time. Fink sees no evidence of a large-scale rotation into stocks from bonds as global and high-yield
READ MORE... →Salient to Investors: Going to court to prove that a mutual fund charges small investors excessive fees is often an exercise in futility because the courts have set the bar so high for plaintiffs that most suits are dismissed before they even get to trial. Niels Holch at the Coalition of
READ MORE... →Salient to Investors: Research finds that, among US-based fund managers, a Brazilian-born manager who speaks fluent Portuguese and is familiar with the country’s business culture had better results when investing in Brazilian companies than a German-born manager. Quoc Nguyen at University of Illinois found: US funds that overweight stocks from the local ethnic
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