… doesn’t exist, but it would have underperformed the past year:
A Financial Times analysis of last year’s tips shows decidedly mixed results. An investor who followed every top idea from the 12 speakers last year would have made 19 per cent, less than the 22 per cent gain available from a passive index fund tracking the US stock market. Read more
Being a traditional investor sucks, doesn’t it? You give your money to a fund manager, they charge fees and half the time don’t even outperform benchmark indexes.
Being a traditional equity fund manager sucks too. Investors give you their money, expecting you to find a stack of alpha — but at the same time they’re insisting your portfolio allocations don’t deviate TOO much from benchmarks, and getting antsy if your returns fall below trend. Read more
It’s been a rather optimistic sort of January. S&P financials are finally trading above book value (but with wide variations between individual banks), junk bond issuance is full steam ahead with flows to high yield funds, and the headline S&P 500 is just 3 per cent off of its post Lehman high:
Oompa, Loompa, doom-pa-dee-da
If you’re not greedy, you will go far
You will live in happiness too
Like the Oompa Loompa doom-pa-dee-do.
That, by the way, is FT Alphaville’s ode to Anthony Ward (dubbed “Choc Finger” by tabloid press), manager of the Armajaro hedge fund flagship fund. That’s the fund which last week stashed 240,100 tonnes of cocoa beans, via the Liffe exchange’s biggest physical delivery since 1996 — equal to some 7 per cent of annual global production, according to the FT. Read more