Morningstar Inc., which popularized the use of style boxes to help advisers build diversified portfolios of mutual funds, soon could face serious competition from an out-of-the-box thinker. Link to Article
In a series of three articles published in Investment Advisor (September ’05, January ’06, February ’06), Craig Callahan and C. Thomas Howard levy several criticisms of the so-called investment style box. According to the authors, use of the style-box concept … Continue reading
In the September 2005 Investment Advisor, we showed that characteristic (value-growth and market capitalization) constrained investing costs investors almost 300 basis points per year. Then, in the January 2006 issue, we demonstrated that characteristic boxes are not asset classes since … Continue reading
In the September 2005 Investment Advisor, we showed that investing constrained by characteristics (value-growth and market capitalization) costs investors almost 300 basis points per year in performance. Requiring managers to hold stocks that are limited to certain value-growth and market … Continue reading