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Markets & Economy » Disruptive Innovation: The New Normal

October 13, 2014 | Investment Themes

The current economic and market environment is not one in which a rising tide of economic growth will lift all ships; actually, it’s quite the opposite. As businesses compete, the winners will largely succeed at the expense of the losers. Consider recent examples such as Nokia and BlackBerry; …

Markets & Economy » Cyclically Adjusted Price to Earnings: Are U.S. Stocks Overvalued?

July 02, 2014 | Domestic Markets

The 2013 stock market rally was largely driven by rising valuation multiples. Weak economic growth coupled with healthy profit margins meant business fundamentals such as revenues and earnings barely budged as stock prices advanced. Today, some absolute valuation measures reflect varying degrees …

Library » Why Asset Class Diversification is Important

April 16, 2014 | Active Management

One of the most effective risk management tools available to investors is diversification across multiple asset classes (e.g., stocks, bonds, and cash). A portfolio’s distribution across various asset classes is referred to as the portfolio’s asset allocation. Academic studies have shown that …

Library » Why Managing Capital Risk Is Important

April 14, 2014 | Active Management

While risk is often defined by various statistics, the broadest definition of risk to investors is failing to achieve one’s investment objectives. There are three basic portfolio risks that can prevent an investor from reaching his/her goals: Capital Risk - the possibility of sustained …

Library » Manager Search and Evaluation Methodology

February 18, 2014 | Active Management

A critical step in developing any investment program is the evaluation and selection of the managers which will serve various roles within a total portfolio. Most importantly, the manager selection process should focus on the manager’s ability to meet client objectives going forward. While asset …


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