High return dispersion and volatility are a stock picker’s nirvana.
Funds that consistently pursue a narrowly defined investment strategy while taking high-conviction positions outperform.
Classifying funds based on their investing strategies instead of via the traditional style grid presents a new way to look at diversification.
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.
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.
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
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.
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 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.