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September 30, 2020
Analytic Investors Team, guest contributor
The ease with which retail investors can trade equity securities has risen dramatically this year. The increasing popularity of fintech trading apps like Robinhood—which allow investors to trade quickly on their smartphones—and the availability of zero trading commissions at traditional brokerage houses have made it easier for the average investor to trade equity securities. Market makers such as Citadel Securities (a division of Citadel LLC) report that retail traders now account for about one-fifth of stock market trading and as much as one-fourth of trading on the most active days.
September 10, 2020
Harin de Silva, CFA, Ph.D., and the Analytic Investors Team,
Guest Contributors
Last month, Harin de Silva, CFA, Ph.D., Portfolio Manager for the Wells Fargo Asset Management Analytic Investors team and sub-advisor to our long/short equity strategies was one of three guests featured on the podcast, On the Trading Desk® with Brian Jacobsen. In it, he discusses how the strategy navigated the ups and downs of 2020 and how they plan on approaching the continued uncertainty for the rest of the year.
July 08, 2020
Harin de Silva, CFA, Ph.D., and the Analytic Investors Team,
Guest Contributors
Recently, Harin de Silva, CFA, Ph.D., Portfolio Manager for the Wells Fargo Asset Management Analytic Investors team and sub-advisor to our long/short equity strategies was a guest on the podcast, On the Trading Desk® with Laurie King to talk about how traditional risk—as measured by price volatility—may be improved upon by measuring and managing environmental, social, and governance (ESG) profiles within a portfolio.
March 06, 2020
Andrea Coleman
You may or may not recognize this photo; it was taken after Hurricane Michael hit Florida in October of 2018. After the storm, a picture of this house kept appearing in various news articles because it was one of the only homes still standing in the hardest hit area—Mexico Beach, Florida.
February 13, 2020
Andrea Coleman
One of my least favorite things about prognosticators, whether it be sports, investments or Oscar favorites, is that when people make predictions, they only bring them up again when they are right. It is rare when people look back and say, “Wow, was I wrong. You definitely shouldn’t have listened to me.” Well, I’m not a prognosticator, but I am here to shake up that trend and grab my fork to eat some crow.
We have all heard of the virtues of portfolio diversification, learned about them in school, and have Markowitz’s quote (“the only free lunch in finance”) tattooed on us. But since 2010, in one of the strongest bull markets ever (we can debate when a bull market starts at a later time), does it still make sense to diversify your portfolio?
In a recent piece, KKR’s Henry McVey said the following:
“Simply stated, we don’t want to own long-duration government bonds when governments around the world have shifted their tool kits from monetary stimulus to fiscal…
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. So, where does that leave us?
March 01, 2018
Justine Schulerud
Sports are a big part of the culture at 361 Capital, in my free time, I coach a youth soccer team. As 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. As I reflected on being a coach, I recognize the parallels between soccer and managing a portfolio.
November 16, 2017
361 Team
We are frequently asked how investors should analyze the performance of managed futures strategies. This is quite challenging due to the diversity of the strategies employed, and the non-constant exposure, both long and short, across one or more asset classes (i.e., stocks, bonds, commodities and currencies). Because of the lack of consistent exposure, a standard benchmark like the S&P 500 Index is sub-optimal, to say the least, but there are ways to suss out a manager’s value add.
© 2020 Wells Fargo & Company. All rights reserved. Used with permission.
1. See for example http://on.wf.com/6120GIkRs
2. The active exposures are shown in Z scores, which are standardized units that are measured in terms of standard deviations from the mean.
3. “All that Glitters: The Effect of Attention and News on the Buying Behavior of Individual and Institutional Investors,” by Brad M. Barber and Terrance Odean, Review of Financial Studies, Vol. 21, No.2, pages 765–818, 2008.
The views expressed are those of the author at the time created. These views are subject to change at any time based on market and other conditions, and 361 Capital disclaims any responsibility to update such views. No forecasts can be guaranteed. These views may not be relied upon as investment advice or as an indication of trading intent on behalf of any 361 Capital portfolio.
This 361 Capital blog is not intended to provide investment advice. This blog should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by 361 Capital or any third-party. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation.
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