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2018 Mid-Year Blog Recap

5 minute read

We sincerely appreciate each of you for subscribing and reading our thoughts on the market. We hope this information has been useful.

Below, we have highlighted our top 3 most popular blog posts from the first half of 2018. Enjoy!

Regards,

- The R Squared Team


2017 Fund Flows: Passive Trumps Active (Even In International Equity)

2017 Fund Flows   

2017 was the year of massive inflows into passive funds, according to Morningstar’s annual fund flow report, which covers mutual funds and ETFs. The report highlights that a total $692 billion flowed into passive funds, led by U.S. equity and international equity funds. Conversely, almost $7 billion flowed out of actively managed funds, which was far less than outflows in the previous two years. That’s a pretty significant trouncing by passive in the annual fund flow race.

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Portfolio Factor Allocation In International Equity Markets

rsq-sector-allocation-linkedin   

Many hedge funds failed to outperform last year --including some of the most well-known investors-- as individual stock selection became exceptionally difficult in a low volatility environment. This article cites that some investors who struggled last year were those with deep sector knowledge. And yet, some successful investors in 2017 were also sector specialists, albeit experts in different industries (technology and biotech, in this case). With the obvious benefit of hindsight, this suggests that the volatility of a portfolio's returns can be reduced if an investor allocates by sector allocation. But how does this compare to allocation through other factors, like market cap size, style (value vs. growth), and region? Let's look at the numbers.

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Smart Technology: Inherent Risks of GPS-Enabled Devices

Blog 121 image 1   

Today, we want to talk a bit about security and technology. The “Internet of Things (IOT)” is a favored buzz word right now in technology and technology investing. This term describes the now nearly ubiquitous internet connected devices, often GPS-enabled. Smart and connected devices today are cheap and readily available, but do people really think about the security implications inherent to them? 

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Posted by Richard Pell on Jul 3, 2018 10:08:30 AM

Topics: From the Desk of Richard Pell

 

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