Practical analysis for investment professionals 
The US Federal Reserve has offered conflicting messages on interest rates ahead of the Federal Open Market Committee (FOMC) meeting next week. Ron Rimkus, CFA, tries to make sense of the noise and offers a wrap-up of other key issues affecting global markets for fundamental investors. Read more
Leave a CommentStandout stories from the last month include the latest entry in the Alpha Wounds series by Jason Voss, CFA, in which he analyzes the lack of independent judgment among active managers; Matthew Borin’s examination of the recent Brexit vote and its fallout; and Ron Surz’s piece explaining how successful advisers are like successful waiters. Read more
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Joachim Klement, CFA, demonstrates a method for beating average hedge fund returns — without the fees. It’s the best dumb alpha can offer: a simple, low-cost investment strategy that outperforms more sophisticated and expensive alternatives. Read more
18 CommentsIn the leading Enterprising Investor posts from May, Mark Harrison, CFA, imagines a world without the insight of the late Jack L. Treynor; Sameer S. Somal, CFA, considers the intangibles of having your own firm; and Scott Krisiloff, CFA, plows through the recent avalanche of earnings reports for a sense of the consensus C-suite view on the economy. Read more
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The author, together with four other expert money managers, addresses a range of investment topics that pose special dangers to investors, including nontrading REITs, yield dependence, structured notes, hedge funds, Wall Street inefficiency, mutual fund fees, annuities, brokers and fiduciaries, and the future for investors. Read more
1 CommentWarren Buffett and Protégé Partners entered into a 10-year bet on whether an index fund would outperform a portfolio of hedge funds. With two years remaining, Buffett leads by a wide margin. So what does that mean for the active vs. passive debate? Read more
13 CommentsAn analysis of smart beta by Shreenivas Kunte, CFA, an exploration of the importance of due diligence by Lauren Foster, and some cautionary examples of how NOT to solicit allocators by Ted Seides, CFA, were among the leading posts from Enterprising Investor last month. Read more
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Leading posts from last month explore the active vs. passive debate, the Altman Z-score, the nine-box grid, the utility of hedge funds, and behavioral biases. Read more
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Hedge fund exposure fails to deliver for investors due to exorbitant fees, high competition, the ineffectiveness of active management, and a general misunderstanding of the underlying exposures and correlations (i.e., hedge funds don’t hedge). But the purpose of hedge funds from the perspective of the manager, parent company, consultants, and brokerages is to collect fees. In that sense, hedge funds have been a huge success each and every year. Read more
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