A reader asked the following question about advisers using actively managed mutual funds;
(could you) discuss a little about Planners using funds that are actively managed, but really only out perform 3% or so as opposed to “real” investors that go off script. I have viewed this as a business risk v. doing what you should for your clients.
I’m not entirely sure what is being asked so I’ll just wing it. Broad based, actively managed funds are very problematic. There are of course the statistics about actively managed funds lagging the market. That seems like the sort of thing that while probably true there might be more to the story like risk adjusted returns and maybe even data mining.

From my point of view the problems arise in constructing the portfolio. If you own a bunch different funds you may still have …

There’s a bright light at the end of the tunnel— finally. Most of the really well respected, long term investors are advising their audiences to hang in there, to stop the panic selling, and to look for the great companies that have withstood the economic downturns of the past.

Buffet, Bogle, Gross, Schwab, and company offer sound advice— don’t run and hide, it’s time to hit the Wall Street Mall and go shopping! They’ve seen the indicators; they’ve been there before. So have many of you. Clearly, it’s time for action.

With IGV stock prices down 50% or more, and income securities as low or lower, Chuck Jaffe points out in MarketWatch that the case for loading up on managed Closed End Funds (CEFs) is a strong one. The great companies are in garage sale mode, and managed CEFs are selling at …

San Francisco Hedge Fund Guide Hedge Funds in San Francisco Here is a short guide collection of articles on the hedge fund industry in San Francisco. I am always looking for more valuable online tools and resources to add to these geographical hedge fund guides to the hedge fund industry. If you have a white paper or PowerPoint that I can include here please send me an email and I will post it for everyone's benefit. San Francisco chapter of Hedge Funds Care Interesting articles about two San Francisco hedge funds and their recent success Global turmoil effecting hedge funds everywhere, including San Francisco San Francisco firm pays $30 Million in settlement Article: “The Best Investment Advice ...

Email Newsletter ToolStart A Hedge Fund Related NewsletterEven though almost everyone uses email now not many firms in the hedge fund industry provide a consistent weekly, monthly or even quarterly email newsletter. Why? Because it takes a little bit of trial and error and some consistent work to produce the fresh content for each new issue. Providing an email newsletter can provide a competitive advantage for your firm as you are able to keep on top of minds of prospects, be seen as a thought leader in your space, have your newsletter forwarded on to other prospects and show your level of niche expertise. I have found email newsletter by the best way to keep in touch with everyone that I have met through this hedge fund blog, my Hedge Fund Blog Book downloads and ...

Small Hedge Funds Interview on Small Hedge Funds I recently completed two interviews. One with the Financial Times and another short interview for an article being written on small hedge funds with less than $100M in assets under management. Here is a short excerpt of this second article and link to the full article: The storm over Wall Street has abated somewhat, but the tide of bad news is receding slowly, complicating life for hedge fund managers and the rest of the financial industry. “The credit crunch continues,” said Ed Grebeck, CEO of Tempus Advisors in Stamford, Conn. While large institutions have endured round after round of pain, scores of small, relatively unknown hedge funds, or largely unregulated pools of investments, have quietly worked through the turmoil. These smaller funds continue to score better returns than ...

Texas Hedge Fund Guide to Hedge Funds in Texas Texas continues to grow as a hub of hedge fund activity. It is one of the top 10 states in terms of hedge fund assets under management and total number of hedge funds in operation. Here is a short guide collection of articles on the hedge fund industry in Texas. I am always looking for more valuable online tools and resources to add to these geographical guides to the hedge fund industry. If you have a white paper or PowerPoint that I can include here please send me an email and I will post it for everyone's benefit. The Texas Hedge Fund organization, a good starting place One of the largest and most influential ...

Russia Hedge Fund Guide Guide to Russian Hedge Funds Here is a short guide collection of articles on the hedge fund industry in Russia. I am always looking for more valuable online tools and resources to add to these geographical guides to the hedge fund industry. If you have a white paper or PowerPoint that I can include here please send me an email and I will post it for everyone's benefit. Excellent New York Times article about a Russian multimillionaire, his hedge fund, and America Russia dominates the list of leading hedge funds Good summary from Hermitage Capital Management about hedge funds in Russia Russia Hedge Funds 2008 Event in Switzerland “Russia’s hedge fund managers: The long, the short and the tall” Informative June 2008 Russian Hedge Fund ...

Hedge Fund ForumHedge Fund Forum - HedgeFundMessageBoard.comAs many of you already know there is a growing hedge fund forum connected to this hedge fund blog. To make it easy for you to get there I have purchased HedgeFundMessageBoard.com for this forum and you may now use that domain name to reach this message board on hedge funds.Since we live in a time of much hedge fund regulation please do not post any performance figures or advertisements on this forum - it should be used to network, share resources, ask questions, announce events and provide feedback for the Hedge Fund Group (HFG) and this blog.Here are some of the most popular posts on the hedge fund forum to date:A ...

Middle Office JobsMiddle Office Job & Operations Jobs AvailableJust a short note that I've posted two new open hedge fund positions to the Finance and Accounting Job section of my Hedge Fund Job Listings page.The first is a Hedge Fund Operations Associate position and the other is a Hedge Fund Middle Office Associate position. To view both please see this page: Finance and Accounting Jobs.- RichardSubscribe To this Blog via Email | Or RSSArticles related to Middle Office Jobs: 1. Portfolio Management Jobs2. Finance and Accounting Jobs3. Compliance Jobs4. ...

Beijing 2008 Olympic GamesBeijing 2008 Olympic Games & Hedge Fund EventsI've been watching the Olympics in Beijing this week between consulting meetings and blogging and the number of cultures which all come together for the games in Beijing is impressive. It is truly unique and inspiring.Watching the Beijing Olympic Games has inspired me to get my ducks in a row and schedule the first series of Hedge Fund Group (HFG) events. I met with a group today over lunch who will be helping me organize and market these to the industry and I hope we can make it valuable to all who attend. These quarterly Hedge Fund Group (HFG) ...