As we approach the end of the year, many professional investors are focusing their attention on performance metrics that will determine part of their annual compensation. Hedge funds have typically aimed to operate on a “two and twenty” fee structure
“The performance of investors who add value is asymmetrical. The percentage of the market’s gain they capture is higher than the percentage of loss they suffer …. Only skill can be counted on to add more in propitious environments than
There can be many situations that would lead an intelligent investor to sell a highly appreciated investment. Read this article for some of the reasons and potential pitfalls to avoid in the process.
As we move into the height of third quarter earnings season, many investors may feel overwhelmed when it comes to staying on top of earnings announcements for portfolio companies and investment candidates. Without a solid system for keeping abreast of company filings, it is inevitable that you will either miss a report entirely or only read it several days after it is initially released. This is particularly true for smaller companies that are not regularly covered by analysts or major newspapers such as The Wall Street Journal. How can investors confidently stay informed? Read this article for some ideas.
Throughout the 1990s, mutual funds were marketed to individual investors with stellar ten and fifteen year track records made possible by the record bull market of the 1980s and 1990s. While there were a few notable interruptions, with the 1987 crash being the most obvious, most individual investors learned to “buy the dips” throughout this period. Most large capitalization companies made significant advances in earnings during these years but the expansion in earnings multiples had the effect of turbo charging returns to investors. Of course, this all culminated in the bubble of the late 1990s, but small investors remained optimistic for some time, having been trained to buy the dips for so long. Read this article for more on why investors cannot expect to hide from equity market volatility in fixed income securities, at least not without taking on other types of risk.