Concentrating a portfolio on a few choice assets dramatically increases an investor’s chance of superior performance. Nonetheless, most advisors and investors shun portfolio concentration as unacceptably risky. To a great extent, this is driven by the myth that adequate diversification … Continue reading
C. Thomas Howard, CEO and Director of Research at AthenaInvest, was quoted in a January 8, 2012 article which appeared on MarketWatch: BOSTON — Investing a bit in mutual funds is a bit like running a pro football team. Everything … Continue reading
Indexing is overly hyped, and skilled stock pickers will prevail. Conventional wisdom suggests that hiring an active equity manager is a fool’s errand. I once believed this too, as did many of my academic contemporaries enamored with an elegant yet … Continue reading
It has been a tough few years for stock-picking mutual fund managers trying to beat the market—but that’s beginning to change. Stocks’ lockstep behavior has been breaking down in recent months, which means active managers should have more opportunity to … Continue reading