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WSJ Takes Aim at Morningstar; Twitter Storm Erupts

Call it a fight. Call it a battle. Whatever you want to call it, in the world of mutual funds, a proverbial shot was fired on October 25th when the Wall Street Journal took Morningstar, Inc. to task over its fund “star” ratings. By now, we assume most advisors have read the critical piece titled “The Morningstar Mirage.” Executives from Morningstar responded with their own rebuttals; mostly acknowledging the limitations of analysis based on past performance but also defending their methodology based on the WSJ’s own analysis which actually showed that the “star” ratings did in fact tilt the odds in the investors’ favor. Which Morningstar states is the primary objective. Even Twitter got in on the debate sparking something of a mutual fund fire storm…well, really more like a sparkler, but whatever. 

Posted by Richard Pell on Nov 8, 2017 4:31:40 PM

Topics: From the Desk of Richard Pell

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Biosimilars: The Opportunity and Growth Potential

A couple months ago, our international equity team published a blog about generic drug prices and the downward pressure. In this blog, we will continue the generic drug theme by exploring the prospects of biosimilars—generic versions of biologic drugs, also known as biologics.

Biologics are molecules made by living organisms such as humans, animals, and microorganisms, which means they typically have a more complex molecular structure compared to conventional drugs. These drugs can treat a wide variety of diseases and potentially see greater efficacy versus other therapies.

Posted by Daeil Cha on Nov 1, 2017 10:24:40 PM

Topics: From the Desk of Daeil Cha

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Brazil Consumer Stocks on the Rise

It wasn’t very long ago—the last quarter of 2016—that we were reading reports that Brazil’s worst-ever recession had intensified its downward spiral. In March of this year, Reuters wrote about dismal numbers crushing the hopes of those searching for signs of a recovery in the country.

Posted by Harry Polishook on Oct 27, 2017 1:36:13 PM

Topics: From the Desk of Harry Polishook

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Supercharging Electric Vehicle Uptake

At the end of last month, we wrote a blog about the global shift to electric vehicles (EV). In this R Squared Capital Management blog, we’ll take a closer look at battery costs, EV adoption rates, and emerging battery technologies.

According to a 2016 survey by Japan’s Ministry of Economy, Trade and Industry (METI), the three most important impediments to buying an EV were battery-related: 

Posted by Luis Ahn on Oct 18, 2017 2:22:53 PM

Topics: From the Desk of Luis Ahn, Electric Cars

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International Equity Investors Look at the Era of Machine Learning

As a follow-up to the R Squared blog on the impact of automation on bank branches, let's take a look at how the broader financial industry is changing due to a transformative technology: machine learning.

While machine learning (ML) has existed since the 1950s, only in recent years has the hardware progressed enough to make ML applications relevant—and potentially necessary—in business. This year, an index that tracks stocks that are poised to benefit from increased adoption of robotics and machine learning is up over 40%.

Posted by Daeil Cha on Oct 12, 2017 10:53:34 AM

Topics: From the Desk of Daeil Cha

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MiFID II and Upcoming Change for U.S. Asset Managers

When thinking about investment management and how to grow your business, there is more to focus on than performance. We can all agree that performance is the key driver to asset-raising however, no investor will allocate money to your firm without the proper operational or compliance infrastructure. That means for asset managers, regulation is a key topic. 

Most firms are aware of topics that directly affect their business, but what about regulation that has a secondary effect? The investment management business is a global business—so regulation, both in the U.S. and overseas, impacts asset managers. 

Posted by Elyse Waldinger on Oct 4, 2017 11:23:48 AM

Topics: Europe, International Equity, From the Desk of Elyse Waldinger

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The Global Shift to Electric Vehicles

While many have eagerly followed Tesla’s progress in the electric vehicle (EV) market for years now—and if you haven’t, check out TSLA’s stock, which has increased 10x over the past 5 years—governments and industry alike are piling into the space. 

Posted by Luis Ahn on Sep 27, 2017 10:40:34 PM

Topics: From the Desk of Luis Ahn, Electric Cars

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Bitcoin and Cryptocurrencies Making News Again

Bitcoin has been a controversial topic among investors and financial professionals for quite a while. However, recently, Jamie Dimon, CEO of JP Morgan Chase, made his stance very clear. Dimon said that if he found out a JPMorgan trader began trading in bitcoin, he would “fire them in a second.” Why? “It’s against our rules, and they’re stupid.” He also suggested that central banks view bitcoin as a novelty. 

Posted by Harry Polishook on Sep 21, 2017 2:15:33 PM

Topics: From the Desk of Harry Polishook, China, Bitcoin

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RIAs Make the Case for International Equity (We Agree)

We spent some time exploring what the rest of the online world says about the International markets, and we came across not one, but two articles written by RIAs whose favorable outlook on international equity was in line with what we’ve been saying recently as well. Here is a snippet of their observations:

Posted by RSQ Team on Sep 14, 2017 10:33:08 PM

Topics: Commentary, International Equity

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Meet the Team | Harry Polishook: Partner & Analyst

At R Squared Capital Management (RSQ), our asset management firm specializes in international equity. Our team is brimming with top talent with years of investment experience that traces back to 1995 and their tenure at Julius Baer Investment Management and Artio Global.

Posted by RSQ Team on Sep 8, 2017 11:32:55 AM

Topics: From the Desk of Richard Pell, Meet the Team

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