EUROPE’S ENERGY CRISIS IS KEEPING ENERGY PRICES AND INFLATION HIGH
America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors..
Why Hedge Funds Destroy Investor Wealth
The title isn’t my creation, but is rather the work of Michael Edesess, PhD, CIO of Fair Advisors (an investment firm) and author of The Big Investment Lie (which I am currently reading). Michael just posted a review of my book, and he does an excellent job of summarizing the highlights and adding his own […]
IT Risk as an Investment Consideration
Last week’s Knight Trading (KCG) disaster marked the first time that I can recall when a software glitch actually threatened the surivival of a public company. In recent years computer technology has played an increasing role in the functioning of the equity markets, and KCG’s mis-hap was preceded by the Facebook (FB) IPO mess and the Flash […]
New Ideas
In late July I had the opportunity to present the ideas in my book, The Hedge Fund Mirage, at the CFA Institute’s Financial Analysts Seminar in Chicago. Flying to Chicago for the day afforded me time to catch up on some reading, and some new ideas. From time to time we’ve written about the Equity […]
Why a Greek Exit from The Euro Isn't Inevitable
As we head towards another deadline for Greece, during which they must convince the troika that austerity is on track, there is growing speculation that Greece may be forced out of the Euro. A “Grexit” to use a popular term. Well, maybe, but here’s why it’s not inevitable. First, from Germany’s point of view, Greece’s […]
The Dumbest Idea in Finance
Modern financial theory holds that a diversified portfolio of securities is the most efficient way for an investor to access an asset class. Idiosyncratic risk, the risk associated with an individual stock say, can be diversified away and therefore theory holds that investors don’t achieve any additional return for holding concentrated portfolios of their favorite […]