As published on Advisor Perspectives July 23, 2018

By Robert Huebscher

How does a proven tactical strategy work when the market signal is driven by behavioral crowds? In this interview, C. Thomas Howard, PhD of AthenaInvest reveals how their global tactical portfolio outperforms with a unique behavioral approach.

More and more, Financial Advisors agree that portfolios with a tactical tilt provide increased asset allocation flexibility that can improve returns and help manage risk.

The Active Equity Renaissance is a series of posts by AthenaInvest's Founder and CIO, C. Thomas Howard, PhD, and Jason A. Voss, CFA, retired co-Portfolio Manager of the Davis Appreciation and Income Fund. It proposes an alternative to modern portfolio theory (MPT), and pokes holes in MPT’s underlying assumptions. Ways to improve active management returns are discussed throughout.

Read the Series on Enterprising Investor 

A new measure reveals when the odds are stacked in favor of active managers and when it might be best to go passive.

By C. Thomas Howard, PhD

Modern portfolio theory (MPT) is questioned by many in the financial advisory industry and for good reason. An ever-growing empirical research stream soundly rejects the three MPT pillars of mean-variance optimization, the capital-asset pricing model (CAPM) and the efficient markets hypothesis (EMH).

The primary focus of the renaissance investment management firm is delivering the best possible investment performance, not on scaling for scaling’s sake, C. Thomas Howard and Jason Voss, CFA, explain in the latest entry in The Active Equity Renaissance series...

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