3 Jun 2014

Do Hedge Funds Hedge?

Bloomberg News reported yesterday that the private equity giant KKR was closing down a hedge fund that they formed three years ago.  KKR is one of the largest and most successful private equity firms in the world, but they have struggled to find their way in other areas of the asset management business. The hedge fund, known as KKR Equity Strategies, wasn’t successful attracting assets with only 20 clients investing… Read More

By David Ott Tags: ,
16 Apr 2014

Are Small Caps Expensive?

The recent underperformance of small cap stocks has me wondering whether the outperformance that small cap stocks has enjoyed over the last decade could be coming to a close. Over the last ten years, the S&P 500 has gained 7.16 percent and the S&P 600 Small Cap Index has earned 9.81 percent a year, an outperformance of 2.65 percent per year.

By David Ott Tags: ,
11 Mar 2014

Which Stock Sector is Best?

A lot of our attention at Acropolis is focused on asset classes like US large or mid cap stocks, emerging markets or bonds.  We also spend a lot of time researching and trying to optimize strategies like value, momentum, size and quality. Another dimension that factors into our decision making process are stock sectors (bond sectors too, but I’ll save that for another day).  Within the S&P 500, there are… Read More

By David Ott Tags: , ,
21 Jan 2014

Acropolis vs Harvard Endowment

I didn’t apply to Harvard because I was certain that they would not admit me. My grades were fine and scores were so-so, but at that time they were accepting only nine or ten percent of applications and I knew that the other kids had top grades and scores AND were fluent in four languages, captain of multiple teams and fought poverty on the side. Or, worse yet, their parents… Read More

By David Ott Tags: , , ,
17 Jan 2014

How We Use Past Performance

Yesterday’s insight about the Morningstar Manager of the Year generated a lot of interest and feedback from readers.  Thank you!  I appreciate your replies and make it a point to respond to all of them. While we’re on the subject, I also want to thank you for completing the satisfaction survey that we sent 10 days ago. I am pleased to report that when you were asked whether you would… Read More

By David Ott Tags: , , ,