You might think that most active managers are providing rewards in exchange for taking calculated risks. In fact, many managers merely strive for mediocrity. Link to Article
In the Journal of Investment Consulting (Winter 2005-06) and in a series of articles in Investment Advisor (September 2005, February 2006, and March 2006), we made the case that constraining investment managers to “boxes,” defined by market capitalization and value-growth … Continue reading
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