For mutual fund investors, taxes are inevitable. Even if you’re a long-term buy...
Welcome to MutualFunds.com
Please help us personalize your experience and select the one that best describes you.
Your personalized experience is almost ready.
Check your email and confirm your subscription to complete your personalized experience.
Thank you for your submission
We hope you enjoy your experience
Fixed income news, reports, video and more.
Municipal bonds news, reports, video and more.
Practice management news, reports, video and more.
Portfolio management news, reports, video and more.
Retirement news, reports, video and more.
Learn from industry thought leaders and expert market participants.
Deepen your understanding of Responsible Investing and learn how it can potentially help you build a more successful practice.
18 Most Popular Mutual Fund Categories
View All Categories
15 Most Popular Fund Companies
View All Fund Companies
15 Most Popular Fund Company Quick Screens
View All Fund Company Quick Screens
Receive email updates about fund flows, news, upcoming CE accredited webcasts from industry thought leaders and more.
Content focused on helping financial advisors build successful client relationships and grow their business.
Content geared towards helping financial advisors build better client portfolios.
Get insights on the industry trends and investment news from leading fund managers and experts.
In this environment, most alternative, hedged and/or absolute return strategies aimed at mitigating market exposure, have not worked either. Panic selling has caused a liquidity crunch, with margin calls forcing leveraged investors to sell often at great loss.
I presented to the first wise man, an English nobleman, a stable of these so-called managers for investment – convertible, merger, capital structure, mortgage and even commodity arbitrageurs. I presented well-structured strategies, with enviably consistent track records, aimed at making money in any environment. “Hmm”, he commented, “these are American strategies”.
This basically meant that they worked best (or only) when the dollar was strong, with positive real interest rates (i.e. CDs out-earned inflation) and robust financial activity, all of which allowed Wall Street’s alchemists to concoct various flavors of financial engineering.
The second wise man was a legendary yet secretive macro manager who ran a portfolio for a well-known hedge fund. He spelled out to us in great detail his then current investment thesis and positioning, where after he stated plainly, “I may change my mind tomorrow”.
We learn from them both that one cannot ignore macro-economic trends, especially during times of market stress, and that one must be willing to make active investment choices.
Going forward, one can no longer rely on either general indexation, nor many generic “smart beta” alternative strategies that worked in bull markets. This does not mean there will not be good investment opportunities. Investors and advisors are going to have to work harder to earn their keep and stay away from sectors or strategies which may endure continued pain. If an investment strategy seems too good to be true, it probably is.
One must have a view now, act on it and be willing to make changes if necessary. It’s time to get off the fence.
Norman H Chait, CFA is the Managing Principal at Nardis Advisors LLC
Disclaimer: Nardis Advisors LLC (“Nardis”) is a Registered Investment Advisory Firm regulated by the U.S Securities and Exchange Commission in accordance and compliance with applicable securities laws and regulations. Nardis does not render or offer to render personalized investment advice through this medium. The information provided herein is for informational purposes only and does not constitute financial, investment or legal advice. Investment advice can only be rendered after delivery of the Firm’s disclosure statement (Form ADV Part 2) and execution of an investment advisory agreement between the client and Nardis.