Category: Investment Methodology

04
Sep

Happy Birthday, Warren

Content provided by Grant Engelbart, CFA, CAIA, Senior Portfolio Manager & Co-Director of Research Warren Buffett turned 88 years old on Thursday, August 30. Quite possibly the most famous value investor of all time, Buffett took control of Berkshire Hathaway in 1965 (“that is, when current management took over”). Since then, the company has transformed...
23
Aug

ESG Investing: Look for Progress, Not Perfection

Content Provided by Rusty Vanneman, CFA, CMT – Chief Investment Officer Recently, I took up paddle board racing. It has appeal in a variety of ways: the discipline that goes along with training for an event on the calendar, the competitive aspect of the budding sport, plus it’s a lot of fun! Paddle boarding is...
22
Aug

Risk Budgeting Basics: Can U.S. Treasuries be Riskier Than Emerging Market Stocks?

Content Provided by Case Eichenberger, CIMA – Client Portfolio Manager Risk can be defined in multiple ways: beta to the stock market, standard deviation of returns, relative standard deviation to the stock market, probability of catastrophic loss, probability of not realizing goals, or probability of not sticking with investments, among others. None are correct or...
10
Jul

Sir John Templeton: The Humble Approach

Content Provided by Rusty Vanneman, CFA, CMT – Chief Investment Officer One of the most important days in my development as an investment manager occurred in the spring of 1987. It was during my undergraduate days at Babson College. It was Founder’s Day, which is Babson’s oldest tradition, a day established to recognize the school’s...
29
Jun

Behind the (Research) Curtain

Content provided by Grant Engelbart, CFA, CAIA, Portfolio Manager There are five areas of analysis we utilize to review investment ideas (see our Risk Budgeting White Paper pages 9-10). To help our readers understand these analyses and our investment processes, let’s take a look at a real life example applicable to many, if not all,...
11
Jun

Reason #29 Not to Use Stock-to-Bond Ratios to Manage Risk

Income-Based Portfolios Which portfolio would you expect to be riskier? A or B? Or, put another way, which portfolio would you expect to be more volatile?   Tough call, isn’t it? They both look very similar in terms of stock-to-bond ratios. Let’s call it a wash — they both hold the same risk. How about...
07
Jun

Return Drivers of Commodities

Content Provided by Jackson Lee, CFA, Quantitative Investment Research Analyst “Be Creative” is a new CLS Investment Theme that was introduced the beginning of this quarter. To recap its introduction, “Be Creative” means CLS will add more exposures to asset classes such as alternative and real assets. The benefits of investing in these segments rather...
17
May

Demystifying Liquid Alternatives

Content provided by Grant Engelbart, CFA, CAIA, Portfolio Manager One of our latest investment themes, Be Creative, emphasizes the use of alternative assets in portfolios. Alternatives is a broad and often confusing category of investments that encompasses unique assets, such as commodities, and alternative strategies, often called liquid alternatives, packaged in a systematic way. Some...
16
May

Time to Be Active

Content provided by Michael Hadden, Junior Research Analyst Now that summer is around the corner, I assume it’s safe to say most New Year’s resolutions have fallen to the wayside. For many, myself included, that resolution involved getting to the gym and being more active. And while I haven’t been great at making it to...
21
Mar

DOL Rule: UPDATE

Content provided by Mike Forker, Chief Compliance Officer Late last week, the DOL fiduciary rule was addressed by the courts. Here are the main takeaways you need to know. On Thursday, the Fifth Circuit Court of Appeals issued a decision that vacated the Department of Labor’s (DOL) fiduciary rule.  The ultimate fate of the rule...