Monthly Archives: April 2012

More Things That Don’t Change Over Time

THIS (Keynes the Stock Market Inventor) is a pretty interesting piece that was partially excerpted in the Wall Street Journal several weeks ago, but being gluttons for punishment, we had to read the original tract. We would note the following and only modestly self-serving points: 1. A 22 year record annualizing at 14.5 percent or 800 BPS over a conceptual index is ridiculously good. 2. It should be noted that this record was in his unrestricted Cambridge Account. Accounts that he ran […]

The Active Management Pretend Game

by Eugene Robin  |  Research Analyst, Cove Street Capital Let us start by saying that this is not an essay on whether or not a large pool of institutional asset allocators should consider an indexing strategy or not. What follows is an analysis of the question: “If you are going to charge active management fees with the goal of outperforming relevant benchmarks over the longer run within reasonable risk parameters, what sort of preconditions are suggestive of a higher probability of […]