When evaluating the performance of a manager, it is easy to get caught in the trap of judging them on their average annual return over a 3-, 5-, or 10-year period. It seems intuitive that we would want to hire the manager with the highest average annual return, right? It turns out, that is not always the best way to evaluate potential investments. We also need to consider the volatility of that return set.

  • 4 Blogs to Get You Up to Speed on Long/Short Equity Strategies  

    One of the most puzzling market-related stories to come from COVID-19 is the disconnect between the stock market and the economic numbers. The market would be much, much lower if it weren’t for the Federal Reserve’s actual and promised buying of credit assets (e.g., Treasuries, Investment Grade Bonds, BB junk bonds, auto loans, residential and commercial mortgages, credit card debt, etc). They have provided a floor to the markets that help companies raise money by selling bonds and to keep the foreclosure and repo man away from all the personal assets of people who just lost their jobs.

  • Breaking Bad  

    The Betas They Are A-Changin’…

    May 06, 2020
    Harindra de Silva, CFA, Ph.D., and the Analytic Investors Team,
    Guest Contributors

    The beta of a stock or portfolio is a widely used measure of risk—capturing the sensitivity of the security to “market wide movements.” Regardless of the source of the movement of the market, this measure captures what the market and the security have in common. A security that has low beta is described as having low sensitivity to the market and vice versa.


    Earnings season is normally the time when investors use freshly reported results to update their expectations. It is a time to evaluate whether a company is on track to achieve its targets, exceed them, or perhaps fall short. Those results, combined with management’s forward-looking comments, form the basis for updated expectations. However, this earnings season will not fit into that framework. A recent article from Bloomberg highlighted the lack of information currently facing investors.

  • Long/Short Fund Fees  

    Understanding Long/Short Fund Fees

    April 23, 2020
    Josh Vail, CAIA & Andrea Coleman, CAIA

    Lately we’ve fielded a lot of questions about fund fees. It seems both advisors and clients alike are finding fee disclosure confusing and there’s a lack of clarity around what investors are actually paying. This can become even more of a challenge for long/short equity funds.