Healthcare has been a great sector in which to invest for many years now. But as The Economist lays out in this article, there are factors in place that may change the source of those high returns, especially for some participants in the industry. Read the full article in The Economist
[VIEW FULL POST]Index funds are risky for a variety of reasons. Left to their own devices, investors in passive vehicles tend to underperform the market given their penchant to enter and exit equities at exactly the wrong time. Read Kari’s full article on CNBC.com
[VIEW FULL POST]Kudos to Maura Healey, whom I know and respect, for investigating how Facebook sold/offered/handed over or otherwise were convinced to share member data with a “company” or “researcher” with unclear and unexplained motives. Read the full article in The New York Times
[VIEW FULL POST]Active managers are holding fewer stocks and therefore, in a sense, becoming more active. The bigger bets on individual stocks should increase the dispersion of active manager performance. Read the full article in The Economist
[VIEW FULL POST]When index funds comprise 40% of all trades, and they are only selling, with less traders active (not passive), there are fewer bids on the other side, forcing prices down even further. This is an obvious, but very real, hazard of passive investing trends. Read the full story in The New York Times
[VIEW FULL POST]Here is an article from The Economist that details the dangers of structured products, such as Credit Suisse’s XIV which collapsed spectacularly last week. Banks like to sell these products to institutional and high net worth clients because they generate fees for the banks and often times are not well understood by the clients –…
[VIEW FULL POST]The many problems with GE’s financial reporting has made it difficult for both managers and investors of GE alike to assess the health of the conglomerate. At Aureus, we feel it’s important provide clear and concise client reporting so that both ourselves and our clients are able to properly assess their current financial situation and have the necessary…
[VIEW FULL POST]Why can’t wages climb? Because huge companies buy out competitors and then cap salaries to insure that profitability rises, justifying the purchase price. True in everyone in every industry, including farm-equipment mechanics. Read the full article in The New York Times
[VIEW FULL POST]Kari offers her recent views on the market in an article she published for CNBC. She highlights the importance of cynicism in a rising market to protect clients from permanent loss of capital. Read the full article on CNBC.com
[VIEW FULL POST]While ESG funds are being raised at a rapid pace, they represent a very small percentage of stocks and therefore their influence on management teams is questionable. However, BlackRock is one of the largest investors in stocks through its passive iShares index platform, which heretofore had itself taken a largely passive stance with regards to…
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