Archive

Backseat Driving Your Portfolio

With many of the world’s stock indices hitting all-time record highs, it comes with no surprise that many investors are wondering if now may be the time to lock in profits, sit on cash and attempt buying into the next market downturn. This is defined as market timing. Sigma’s belief is that it is very […]

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Reversion to the Mean

Mean reversion is the theory suggesting that prices and returns eventually move back to the mean or average.  This mean or average can be the historical average, or another relevant average, such as growth in the economy. Applying this theory to the major stock market indices, such as the S&P 500 and the Dow Jones Industrial […]

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Hindsight

Periodically, someone points out that an investment of a small amount, say $10,000, in a major successful company such as Amazon, Microsoft, Berkshire Hathaway, etc., twenty or thirty years ago, would have provided an exceptional investment return.  Isn’t hindsight wonderful? The real question is how should you invest $10,000 now? Realistically, correctly identifying the next […]

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Portfolio Liquidity and ETFs

In a recent Wall Street Journal article, Martin Zweig posited that ETFs, often dirt-cheap to own, can still be costly to buy and sell.  Mr. Zweig cites a study by Antti Petajisto, a portfolio manager at LMR Partners, a London based hedge fund, who looked at about 1,800 ETFs from 2007 to 2014 and concluded […]

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OK, let’s look critically at hedge funds and other alternatives

I met with a client a couple of weeks ago who has a family foundation account that is managed by a large bank (they handle all facets of the account, including grant reviews and check-writing).  This account had not performed as well as this client’s personal account that Sigma managed and in an informal review, […]

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The Hedge Fund Exodus Continues

Over the past few years, clients have asked on occasion about the merit of including hedge fund investments in portfolios.  At its extreme, I sat in the living room of a very wealthy client in North Carolina in 2007 and was politely dressed-down by a money center bank product salesman for not being bright enough […]

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