Evolution in Investment Management

What has worked what has not and why


ETFs vs Mutual funds - Alpha

Hedge funds vs Index funds - Alpha

Structured products vs Complexity

These things don't matter til they matter - then you get a selloff

Reverse evolution set the industry back 20 years -

Can't stand in a puddle and not get your feet wet

!0 year lead in a trillion dollar market........

50% of the problem is a culture issue and this will take a generation to evolve...case closed

Retail Mrket is trapped because they can continue to "get away with it"

Banks and Brokers are in Business the Make Money (for themselves) with Your Money

Nothing wrong with that that is their culture and their business model any way they can do that they will.....

This is a transaction and fee model not a preformance Model.

Hedge fund management is a performance model..

Modern Portfolio "Theory" - Waiting for the Tooth Fairy in the Land of Make Believe

While They Collect their Fees.......The Industry has everyone believing in and Playing Their Game......The reality is if something is hard to think about then people tend to believe it less....

Farnam Street Blog 12-11-2010

The Next Level Level

Alpha Matrix Portfolio Management

MW/AMPM - Combines and synthesizes a number of disciplines to deliver an outcome focused process, including Complexity, Evolution Theory, Game Theory, Competition and Common Sense.

IT's time for a new Model...it's Time to move on.....

The Case for a Modular Approach

Today, the investment industry is characterized by increased attention to diversification, a greater focus on risk management and broader choices. Still, many types of investments are not fully utilized by either advisors or individual investors. A full 58% of mutual funds reside outside the traditional domestic equity nine-box style grid, yet many investors have not fully explored these alternatives in their portfolio. Furthermore, individuals continue to display a limited understanding of how the different elements of a portfolio can work together to achieve a particular risk/reward profile - ultimately investing in too many funds with similar holdings, investment strategies and risk/reward profiles. The result: Mutual fund collectors and not enough Investment Strategy.

We believe individuals should consider adopting an approach in line with the investment strategies practiced by institutions. A Modular approach to portfolio construction, the use of a broader opportunity set and a more clearly defined set of investment goals - including time horizons and return requirements - are all elements of an approach used primarily by institutions. Today, individual investors can adapt these institutional-style strategies with Modular Portfolio Construction.