• True Diversification is Harder Than You Might Think

    March 19, 2018
    Managed Futures, Portfolio Construction

    In early February, volatility, long absent, made a comeback, as global equity markets sold off and the VIX experienced its largest one day move ever, jumping 116% on the 5th. This was prompted in part by rising inflation fears that pushed bond yields higher around the globe. With output gaps–the differences between potential GDP and actual GDP–closing in both the U.S. and globally, a host of sentiment gauges hitting multi-year highs, and unemployment rates at multi-year lows, fears of inflation are certainly justified. Add in the valuation picture, which suggests that this may be the most broadly overvalued market in history, and you’ve got a recipe for investor angst.

    So, where does that leave us?

  • Villanova over Georgetown in 1985, Bucknell over Kansas in 2005, Middle Tennessee State over Michigan State two years ago … NCAA Tournament history is littered with unexpected upsets. It’s how March Madness got its name. If you’re trying to win a bracket challenge, we suggest you embrace the madness and try to call several upsets this year.

  • Over the past decade or so, the asset management and advisory businesses have become far more challenging. The forces of creative destruction have been hard at work, calling into question both the value add and fees charged by investment professionals at all levels. Further, the drumbeat of technological progress promises that investors will increasingly turn to cheap, automated solutions for their asset allocation and portfolio construction needs.

  • Looking to win your office’s March Madness pool this year? Nothing busts a bracket quicker than letting behavioral biases guide the selection process. Use these 10 tips to remove behavioral biases from your own picks and perhaps exploit the biases of others.

  • The Process of Winning

    March 01, 2018
    Justine Schulerud
    Due Diligence, Portfolio Construction

    Sports are a big part of the culture at 361 Capital, such a part that, in my free time, I coach a competitive youth soccer team. As spring soccer season draws near, I am gearing up for rain-soaked practices and at least seven rescheduled games due to late snow storms here in Colorado. In preparation for the upcoming season, my soccer team participated in a pre-season tournament in Las Vegas this past weekend.

    As I reflected on the event, I came to recognize the parallels between soccer (or any sport) and managing a portfolio.