Category Archives: investing

The Paradox of Skill

Print PDF November 10, 2011 The Paradox of Skill Brad Steiman Director and Head of Canadian Financial Advisor Services and Vice President of Dimensional Fund Advisors   In What’s the Significance, we addressed the importance of considering statistical significance when drawing … Continue reading

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Just How Skilled of a Manager-Picker Do You Need to Be?

Print PDF At Index Funds Advisors, Inc. we often refer to the proverbial monkey throwing darts at the stock pages of the Wall Street Journal and how active fund managers as a group have had about the same overall success … Continue reading

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Morningstar’s Manager of the Year: Luck or Skill?

Print PDF Unfortunately for them, investors are constantly bombarded with advertisements, market commentaries, and screaming magazine covers telling them what they should do with their money. Contributing to all the clamor and din is Morningstar’s annual announcement of their awards … Continue reading

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The Hedge Fund Mirage: The Illusion of Big Money and Why It’s Too Good to Be True (a new book by Simon Lack)

Print PDF The Hedge Fund Mirage is a tell-all expose of the $1.6 trillion hedge fund industry and how poorly served its investors have been. A true industry insider, Simon Lack spent 23 years with JPMorgan where he played a … Continue reading

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Two Contrasting Views of Stock Markets

Print PDF “The casino view sees the stock market as largely a place where investors place bets on the near future prices of stocks rather than on the numbers on a roulette wheel or the spots on a pack of … Continue reading

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When Risk Is Sovereign II

Print PDF Jim Parker Vice President Dimensional Fund Advisors   Standard & Poor’s recent credit rating downgrade of nine Eurozone nations may have been treated as a big deal by the media, but for financial markets, the “news” was already … Continue reading

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The Right Focus Can Improve Your 2012 Returns

Print PDF Many investors will focus on the wrong ball when making investment decisions for the New Year. For these investors, the light at the end of the tunnel could be a freight train. The international and domestic stock markets … Continue reading

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Embrace Uncertainty

Print PDF I hear a lot of concern about uncertainty in the market.  This is understandable.  Our domestic economy remains on thin ice, with dangerously high unemployment and record deficits.  The recovery is agonizingly slow. The situation in Europe is … Continue reading

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Problems with Private Equity Performance

Print PDF Index Funds Advisors, Inc. (IFA) recently completed an analysis of the performance of state retirement pension plans which showed that all of them would have fared better with a portfolio of index funds such as the ones offered … Continue reading

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Tilting Towards Small Cap Stocks: Is It Still Worthwhile?

Print PDF This past year was a difficult one for small cap stocks across all geographic regions, as shown in the table below: Of the three equity risk premiums identified by Eugene Fama and Kenneth French1, the size premium is … Continue reading

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