CalPERS Gives the Axe to Hedge Funds

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Earlier this week the California Public Employees’ Retirement System (CalPERS) announced it was eliminating its hedge fund program. Managing over $300 billion in assets, CalPERS is looked to as a leader in the industry of institutional money management. This divesture of roughly $4 billion in hedge funds came as part of a larger asset allocation mix started earlier this year aiming to reduce risk within the portfolio, and with the mandate: “CalPERS will take risk only where we have a strong belief we will be rewarded for it.” Specifically Investment Belief 8 of CalPERS mentions: “Costs matter and need to be effectively managed.” Continue reading

Are You Doing Client Educational Events or Pitching Products?

Snake_Oil_BlogEarly in my career I was given some great advice by someone I admire to this day. As a young regional director trying to help financial advisors I was constantly looking for new ideas and new ways to get their attention so they would value working with me. One day, the owner of the firm I was working for said to me “You’re a hard worker, you’re smart, and you care about helping others, so just remember that advisors can only do what they do if they’re talking to people. So, with that in mind, help them get butts in the seat to talk to.”
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Planner or Prognosticator?

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They say getting married a second time is the triumph of hope over experience, but maybe this adage could also apply to investing with active managers… past results may have disappointed with few managers being able to match their benchmark index. Investors continue to leave the preponderance of assets in this management style, but that may be changing. Continue reading

Do You Know What Motivates Your Employees?

TeamAre you one of the third of financial advisors who plans to retire in the next 10 years?1 Over $2.3 trillion in assets will need to be managed by the next generation of advisors2. Yet many succession plans fail and staff turnover is a critical issue for many of you according to Loring Ward’s 2013 Benchmarking Study. What can you do to address this? Focus on motivating and retaining your team. Continue reading