Can Behavioral Factors Improve Tactical Performance?
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
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.
The Active Equity Renaissance: Renaissance Portfolio Management
Dismantling the finance industry’s closet indexing factory is a critical step in The Active Equity Renaissance, C. Thomas Howard and Jason Voss, CFA, observe...
Life after MPT
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: Renaissance Investment Management Firms
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...
The Active Equity Renaissance: Behavioral Financial Markets
Jason Voss, CFA, and C. Thomas Howard have questioned many orthodoxies of modern portfolio theory (MPT). But what do they propose to take their place? Behavioral finance...