• Research and data-driven behavioral insights to guide client conversations

  • Practical application of behavioral finance to portfolio construction, management and analysis

  • Ideas, guides and materials designed to differentiate and grow your practice

  • Current market conditions from the Behavioral, Economic, Valuation, and Technical perspectives

Returns to Stock-Picking Skill

Returns to Stock-Picking Skill

We are witnessing a dramatic flow of money out of active equity mutual funds and a similarly sized flow into index funds. A large portion of these outflows are from so-called closet indexers, funds that claim to be active equity managers but, upon closer inspection, closely track an index while charging active fees. Investors have wised up to this and are heading for the exits, moving into much lower-fee passive funds that provide the same underlying equity return.

Investment Strategy: Strategy-Based Framework Improves on Style Grid

Investment Strategy: Strategy-Based Framework Improves on Style Grid

The widely accepted style grid of market capitalization and price-to-earnings ratios was largely arbitrary in design, lacking substantial research or academic foundation. An alternative framework based on how managers actually manage their portfolios and organizing around those investment strategies provides a superior alternative for organizing and comparing funds.

Investment Strategy: Strategy Preference Can Indicate Expected Stock Market Return

Investment Strategy: Strategy Preference Can Indicate Expected Stock Market Return

Rather surprisingly, the equity strategy framework can provide an estimate of current expected stock market returns. This is accomplished by measuring the recent investor response to each strategy, which, it turns out, captures the deep behavioral currents driving market returns. The resulting information is useful when managing equity market exposure.

Investment Strategy: The Best Ideas of the Best Funds

Investment Strategy: The Best Ideas of the Best Funds

Examining investment strategy can be useful when evaluating mutual funds, but what information is contained in fund holdings? Do they reveal stock-picking skill?

Investment Strategy: When Does Stock Picking Work?

Investment Strategy: When Does Stock Picking Work?

High return dispersion and volatility are a stock picker’s nirvana.

Investment Strategy: Identify the Best Active Equity Funds

Investment Strategy: Identify the Best Active Equity Funds

Funds that consistently pursue a narrowly defined investment strategy while taking high-conviction positions outperform.

Investment Strategy: Strategy-Based Portfolio Construction

Investment Strategy: Strategy-Based Portfolio Construction

Classifying funds based on their investing strategies instead of via the traditional style grid presents a new way to look at diversification.

Investment Strategy: A Powerful New Foundation

Investment Strategy: A Powerful New Foundation

A simple question asked over 25 years ago, “How should we group and evaluate active equity fund managers?” has evolved into a powerful foundation for rethinking how we look at markets and investment managers.

Interview: Proven Tactical Allocation Strategy Driven by Behavioral Crowds

Interview: Proven Tactical Allocation Strategy Driven by Behavioral Crowds

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.

Contact

AthenaInvest Advisors LLC
5340 South Quebec Street, Suite 365-N
Greenwood Village, CO 80111

Phone:   (877) 430-5675
Fax:        (303) 721-6294
Email:     support@athenainvest.com