Perspectives Blog

The case for active muni management

Kimberly Campbell, Senior Portfolio Manager | April 21, 2014

Muni bonds represent an attractive investment opportunity Active management is a value add in these volatile markets Professional money managers can help investors navigate an ever-changing environment Where does one invest in a world of uncertainty? Rising taxes, volatile markets, low yields, economic stagnation, geopolitical unrest. We live in a world of great uncertainty — yet our investment goals remain the same: a comfortable retirement,…

The case for active bond management

Carl Pappo, Head of Core Fixed Income | August 25, 2014

There have been instances where the passive approach to bond investing produced significant underperformance relative to a benchmark. Index funds are at a significant disadvantage to active portfolios in which managers incorporate valuation into their decision making process. The many nuances and inefficiencies of the fixed income market create both difficulties for indexing and opportunities for active management. Co-authored by Michael W. Za…

Digital dining: How restaurants are applying technology to drive sales

Daniel Spelman, Equity Analyst | February 24, 2014

…to reorder favorite items in just five clicks or 30 seconds. Gone are the days of waiting to get through to someone on the phone or having an order misunderstood due to a bad connection. Because orders are more accurate, food waste is dramatically reduced. The large national brands are using digital as a competitive advantage to enhance convenience and drive frequency, since regional chains and independents cannot keep up technologically. In fact…

Corporate governance – The next catalyst for Japanese equities

Daisuke Nomoto, Senior Portfolio Manager | August 4, 2014

Overhauling corporate governance to harness the power of private enterprise is critical to Japan’s growth strategy. Better engagement between corporate management and shareholders should ultimately lead to higher returns for holders of Japanese equities. We are focused on companies that can generate sustainable free cash flow, earn returns well above their cost of capital and regularly conduct shareholder friendly capital management. A critica…

Understanding the power of alpha

Matt Scales, CFA, Head of Product Development and Strategy | January 27, 2014

…ely on markets going up to make money is not easy, but it is worth the effort The term “alpha” (which until recently was relatively unknown) has become part of the mainstream investment lexicon. Alpha is the result of active management and is intended to generate positive returns above a benchmark that is not structurally tied to the direction of markets. Alpha can exist on its own, but it is more often packaged with the return of a particular m…

Beware of earnings gimmicks

Jason Wang, Senior Quant Analyst | March 10, 2014

…g most of the rally. Expectations are high and everyday investors and Wall Street analysts alike have adopted a “show me” attitude. The consequence for a disappointing report could be severe. To appease Wall Street, corporate managements are pressured to do everything in their power to deliver strong earnings numbers. There are a wide range of possible accounting gimmicks that could be deployed. Some examples are premature recognition of revenue,…