Based on a recent article in Forbes, we would like to share some of their observations on recent hedge fund performance. As the industry heads toward the homestretch for 2012, the numbers are grim. Bank of America Merrill Lynch’s investible hedge fund index shows hedge funds are up less than 2% so far in 2012 … Continued

Several weeks ago I received a solicitation from a local community foundation officer suggesting that we might want to recommend to our philanthropically minded clients an investment in their donor-advised fund. They showed investment returns that, on the surface, appeared quite solid. As I studied their performance data though, I learned that a material segment … Continued

Is there actually anyone out there who still believes that an email from some unknown person in Nigeria, who claims to have access to a fortune that can be shared with a timely financial partner, is true? How obvious does a scam have to be? Yet “obvious” is still the technique of choice used by … Continued

Every talking head on the television and every armchair investor are seemingly willing to give an opinion on many different investments. There is a lot of good and bad information available. What’s most important is not only that the information is correct but also that the investment matches your own time horizon. If you are … Continued

On Friday, May 18th, Facebook began its life as one of the most anticipated and celebrated initial public offerings (IPO) in history. Due to unprecedented demand and limited shares offered in this initial offering, the stock was priced at the high end of inflated expectations. There is much to like in the Facebook story. From … Continued

Last week, former Detroit Mayor Kwame Kilpatrick was charged by the US Securities and Exchange Commission (SEC) in an influence-peddling scheme involving the Detroit Police and Fire pension fund and one of their investment advisers.  The SEC alleges, Kilpatrick solicited and received $125,000 worth of undisclosed perks paid for by the investment adviser.  While this … Continued

Many investment professionals (myself included) consider core investments to be cash equivalents (US Treasury Bills or money market funds), bonds and common stocks.  In simple terms, the combination of these asset classes will impact the daily or monthly variation in the value of the investment portfolio. On occasion, a client, or a financial services marketer … Continued

The emotional desire to “get even and get out” does not translate into a wise investment strategy.  Rather, it is a recipe for disaster over the long term. The equity markets continued their march upwards throughout the first quarter of 2012 with many indices and individual stocks approaching their previous all-time highs.  Since then, the … Continued

A good friend of mine was recently complaining about being tired.  He had to be at work at 6 AM that morning and had stayed out way too late at a party the evening before.  I said the party must have been a good one, and he replied that it really wasn’t that much fun … Continued

Apple’s (AAPL) stock traded at a new high of $621.45 on 3/27.  This stock price puts the market capitalization (total shares outstanding times the price of the shares) of AAPL at a staggering $575 billion.  It’s the largest company in the S&P 500 index, and according to this Wall Street Journal article, about one third of all US … Continued

Jailed for selling an annuity! The number of times I have seen annuities inappropriately used in investment portfolios for clients who subsequently hire me is mind boggling. This is not to say that all annuities are poor investment vehicles, nor that all who sell them are criminals, but there has been a fair amount of … Continued

That is a decision that each individual needs to consider and it is not the purpose of this blog to make that decision for you. Perhaps an analogy might be helpful. Modern commercial aviation has been described as seemingly endless periods of utter boredom, punctuated by moments of total panic. It is easy to believe … Continued