Season Investments

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WEEKLY INSIGHTS

Value Investors & Quants Unite

Posted on Aug 28, 2012

A strategy that is market neutral takes both long and short positions in order to reduce the impact of the market while capturing the relative performance spread between the long and short portfolios. If executed correctly, market neutral strategies exhibit no correlation to stocks or bonds while delivering a unique return stream based purely on the manager skill.

Staying Flexible

Posted on Aug 21, 2012

A true alternative fund doesn’t always have to maintain low-correlation to the equity market. It just needs to be flexible enough to not be correlated at the right times.

Having Your Cake & Eating It Too

Posted on Aug 12, 2012

The improving fundamentals in emerging markets versus the deteriorating fundamentals in developed markets are primarily due to the different stages of the economic life cycle. Many emerging markets have made some tough, long-term decisions to bring their financial houses in order and are now reaping the benefits.

The Definition of a Bad Economist

Posted on Aug 7, 2012

American fiscal policy today seems more intent on delivering "heroics" than "healing". The upcoming Fiscal Cliff presents yet another moment of truth for the US Congress as it decides what to do with roughly half a trillion dollars of scheduled spending cuts and tax increases.

Will the ECB go for Gold?

Posted on Jul 31, 2012

It has long been debated to what extent the ECB will be willing (or even legally capable) of engaging in outright bond purchases of Eurozone countries’ sovereign debt. Such programs have already been implemented throughout this crisis, but such efforts have been limited and have fallen short of anything akin to the US Fed’s quantitative easing programs.

The Long and Short of Value Investing

Posted on Jul 24, 2012

There are many successful value investors that have made a name (and a fortune) for themselves exploiting irrationality in the stock market by identifying dislocations between prices and true long-term value. A new ETF seeks to isolate and capture this "value premium" systematically.

Don't Put All Your Eggs In Two Baskets

Posted on Jul 17, 2012

What does it mean to have a truly diversified portfolio? True diversification is more about the correlation of assets, or how they move in relation to each other, than it is about the sheer number of holdings in a portfolio.

What Babe Ruth Teaches Us About Investing

Posted on Jul 10, 2012

Babe Ruth was the most accomplished hitter in baseball history, not because he was the most consistent but because he produced more bases per hit than anyone else. Likewise, sometimes the risk/reward profile is even more important than consistency when analyzing an investment strategy.

Is Low Volatility the Holy Grail of Investing?

Posted on Jul 3, 2012

In 1952 Harry Markowitz pioneered a portfolio management theory that set in motion a broad shift in portfolio construction methodology. Fast forward to today and you have a slew of investors that are questioning the merits of the market’s efficiency given the violent ups and downs of the past decade.

Are TIPS Really Inflation Hedges?

Posted on Jun 26, 2012

A common concern among investors today is the prospect of runaway inflation. The knee jerk asset that many flock to for this purpose is the Treasury Inflation Protected Security (TIPS). It’s a common misconception that the primary role of TIPS is as an inflation hedge, which reflects a lack of understanding of the intricacies of how TIPS actually work.

It's An Upside Down World

Posted on Jun 19, 2012

In John Mauldin’s “upside down world” capital markets are no longer driven by finance and economics – they are driven by public policy. This is the world we’ve lived in for nearly four years now, and current price action in the market continues to bear this out.

The Search For Antifragility In Volatility Investments

Posted on Jun 12, 2012

The most often quoted metric of stock market volatility is the VIX Index. We explore a new ETP which is designed to tread water during periods of relative calm in the markets and partially participate in big upward spikes in the VIX when markets sell-off, which is the definition of an antifragile investment.