Passive vs. active investing: Erling Brakke | Erling Brakke, CPA, CFA, CTM, MBA posted on the topic | LinkedIn (2024)

Indianapolis Business Journal recently highlighted the growing interest in alternative investments among a broader range of individual investors, featuring insights from Proteus CEO Jason Brown. Read more about this #alternativeinvestment trend https://lnkd.in/gfG8H9WY

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T. Rowe Price is on this week’s #InvestorSpotlight. 📣🔍Focus Areas: T. Rowe Price is a leading global asset management firm, consistently seeking out opportunities to empower individuals in a changing world. Offering a diverse array of investment solutions including equity, fixed income, and multi-asset strategies, they serve a wide scope of clients worldwide, ranging from individuals and advisors to institutions and retirement plan sponsors.As of December 31, 2023, the firm has $743.6 billion AUM in equity, $170 billion AUM in fixed income, $483 billion AUM in multi-asset, and $968.8 billion AUM in retirement. 🌐Headquarters: Headquartered in Baltimore, Maryland, the firm has offices in Colorado Springs, Colorado; New York, New York; Owing Mills, Maryland; Philadelphia, Pennsylvania; San Francisco, California; Toronto, Canada, and; Washington, DC.👥Founding Visionary: T. Rowe Price was founded in 1937 by Thomas Rowe Price, Jr. He established the organization “with a reputation for the highest character and the soundest investment philosophy.” T. Rowe Price has remained dedicated to client satisfaction with a long-term strategy since its inception.📰Recent Deals:- Sionna Therapeutics secured $182M in Series C financing, with participation from Atlas Venture and 9 additional investors.- FogPharma obtained $145M in Series F funding, with T. Rowe Price and 19 other investors contributing to the round.- Freenome raised $254M in a Series E round from Andreessen Horowitz alongside 19 other investors including T. Rowe Price.💰Recent Fund News: T. Rowe Price has broadened the platform availability of its global high-income portfolio to cater to self-directed investors and financial advisors. The T. Rowe Price Global High Income Fund is actively managed and geared towards generating high income, primarily from global high-yield corporate bonds. The Global High Income Fund's investment goal is to pursue substantial current income and potential capital growth by primarily investing in global fixed-income securities rated below investment grade. Additionally, it aims for global diversification by focusing on high-yield corporate issuers from North America, Europe, and emerging markets.Learn more about T. Rowe Price here: https://lnkd.in/eXSuTEi8.———At AXIS Capital Markets, we specialize in global debt placement and private market secondaries for VC- and PE-backed companies. Follow us to stay tuned for next week’s feature.#privatemarket #secondaries #venturecapital #privatecredit #privateequity

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But the ARK cult has enriched Cathie Wood to the tune of a net worth of $300 million; though most have lost a lot of money investing with her...~r"Among financial journalism’s 50 shades of investment p*rn is the super-star fund manager story. As we’ve already seen, at any given time, purely by chance, one fund or another will shoot out the lights, and the star-manager genre is a hardy financial media perennial. As I was writing the first drafts of this book, the superstar du jour was Cathie Wood, the charismatic founder of ARK Investment Management. The ARK Innovation ETF (ticker: ARKK) turned in a blistering 61% annualized return from 2017 to 2020, handily outpacing the 16% annualized return of the S&P 500 . Wood’s earnest pronouncements about the riches to be had from companies that deploy “disruptive technologies” still fill the financial media.Sadly, 2021 wasn’t as kind to her investors. That year saw the ARK Innovation ETF lose 24% (versus a 29% gain for the S&P 500). As usually happens, most of her investors were attracted by her spectacular returns and joined the party late in 2020-2021. A study by Morningstar analyst Amy Arnott, titled “ARKK: An Object Lesson in How Not to Invest,” calculated that while the annualized return of the fund since its October 2014 founding was a sizzling 28%, the average dollar invested in it only got a 9.8% return, versus an annualized 14% for the S&P 500.Investors would have done well to have heeded the advice offered by Ms. Arnott in late 2021; in 2022, ARKK lost 67%, versus a 18% loss for the S&P 500. Not that warning signs weren’t flashing long before that. Before founding ARK Investment Management in 2014, Wood had worked as a fund manager at AllianceBernstein, where she managed multiple funds that on average under- performed. Before that, she co-founded Tupelo Capital Management, which flamed out in the tech crash of the early 2000s. Even if you weren’t aware of Wood’s less-than-stellar prior money management career, likely the result of high cost and frenetic trading, the lineage superstar fund manager genre serves up a generous dollop of George Santayana’s dictum, “Those who cannot remember the past are condemned to repeat it.”https://lnkd.in/gqPi5nDC

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Unlocking Vanguard Index Funds: Your Path to Smart Investing:Discover the power of Vanguard index funds – a low-cost, high-impact approach to investing. Learn how passive management and strategic index sampling can shape your financial future. Explore the Vanguard legacy and its revolutionary role in changing the investment landscape.#IndexFunds #Vanguard #InvestingStrategies #FinancialFreedom #PassiveInvesting #FinancialEducation #InvestmentPhilosophy #WealthManagement #SmartInvesting #PersonalFinance #FinancialIndependence #DiversifiedInvesting #ETFInvesting #MutualFunds #MarketIndices #JohnBogle #ExpenseRatios #LongTermInvesting

Something that I think a lot of people still underestimate is how big of an impact the current $84T wealth transfer will have on asset management and investment products.Younger generations have different needs regarding their investment portfolios than older generations do.We want to be more active.We want access to new and niche products.We want transparency into how these products work and what impact they have on the world.Asset managers and legacy brokerages will need to continue to adapt.And dollar by dollar, the largest generational wealth transfer in history will completely alter the investment landscape for individual investors.I think this will be a net positive for the individual investor and for the efficiency of private markets.

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Did you know the best book I have ever read? It was Beating the Street by Peter LynchBut who is Peter Lynch?Here's his bio:Peter Lynch is a renowned American investor, mutual fund manager, author, and philanthropist, known for his work with the Magellan Fund at Fidelity Investments between 1977 and 1990During his tenure, he achieved an impressive average annual return of 29.2%, which was more than double the S&P 500, growing the fund's assets from US$18 million to $14 billionHis investment philosophy emphasizes "invest in what you know," advocating for the value of local knowledge and suggesting that individual investors can excel by investing in familiar territoriesLynch encourages investors to leverage their everyday experiences to spot potential investment opportunities before they become mainstream on Wall StreetLynch also rejects market timing, critiquing the focus on anticipating market corrections as more costly than the corrections themselvesHe also popularized the "GARP" (Growth At A Reasonable Price) investment strategy, which combines the prospects of growth investing with the prudence of value investing, avoiding overpriced stocks..Learned something new? Consider following me Soorya Ramanj

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Active investing involves fund managers making operational decisions over what to invest in - a hands-on approach. Passive investors look to replicate a given index or market - a longer term approach. Both strategies have their strengths and weaknesses, but which is better? https://lnkd.in/eTcjGir9 Speak to the experts and contact us now to book a no obligation chat, we'd be happy to help, contact us atcottons@sjpp.co.uk.#financialplanning #investmentplanning

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“There’s a sea change quietly happening in private markets. But the forces transforming the market right now actually aren’t digital — they’re analog. Relationships and track records are the products of human beings: you can’t scale them. There’s no digital substitute for people who’ve been in the trenches with you, step for step, helping you navigate the opportunities and challenges.”This is how our Managing Director and Head of Revenue Scott Ramsey describes the sweeping transformation underway in private markets, in a new article published in Global Custodian. As the industry becomes increasingly accessible to the wider public, he argues, skillful client interactions become key to success — and true innovation will serve these processes as they unfold.Read the full opinion piece, including Scott’s five tips for fund administrators and other stakeholders in the industry who are seeking to create the best mindset to navigate the sea change, here: https://lnkd.in/gYeitHQw

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Everyone wants the golden egg that makes their portfolio great. The truth: there isn't any singular perfect path or product that does everything extremely well. The right answer depends on your unique situation.Academic research teaches us that a healthy portfolio is diversified across assets with a variety of characteristics. A good financial advisor understands how to craft the combination of those assets to support your unique needs and goals. Joey Loss, CFP® had fun commenting on an increasingly hot investment topic: hedged equity funds. Thank you to Michelle Lodge for inviting the contribution. #investment #assetallocation https://lnkd.in/e3PDmCZa

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Investors want conviction from investment boutiques But founder / fund managers struggle to state their opinionsWith brevity and a bangHere’s how we help you find your voice🎤When you’ve spent years working for a BigThere’s a vibeSay this, say that, but def don’t say these thingsActually, on second thought,just don’t say anythingSounds stifling doesn't it?When you become a founder of your own investment boutiqueThere’s a new vibe, that’s opposite:Say what you think bc you are an expertYou now have the freedom to put a face, heart and soul on your firmSay what you think and what you believeBecause you've been in this biz, in your space for yearsYou are an expertSounds empowering right?ButAll that open space in front of you isn't freeingSometimes, it’s frighteningWhen we are outside of our comfort zoneWe fall back into old patterns:We want to validate what we say We want to hedge our views incase we are wrongWe use too many words to make our pointYou don’t need to quote someone from the Bigsto give your outlook validityYou are an expert.(let that sink in)Instead of pre-qualifying your convictionsBy quoting someone who has aBigger AUMBigger titleBigger firmBigger followingProudly state your convictionAs a full stand alone sentenceThen unpack it later as part of a convoHere's what that looks like:"I think rates will go down from hereand in an environment of 6s I want to be holding 9s."Versus"(Big industry name) recently was interviewed in this big fancy industry paperAnd he believes that rates are going to go down for these reasonsA, B, CI agree with him because I also think those thingsAnd additionally I think X, Y, ZSo we envision an environment whererates hover around 6 or so, maybe less, maybe more, depending on if these things happenor don't..."😴(You lost them)In our Story Selling Sessions with clientsit's not just about finding your storiesit's also about finding your voiceYour confidenceAnd practicing with someone you trust in a safe space❤The reality isNo matter how successful we areHow much money we've managedWe all struggle to use our wordsAnd that's okayBecause we're humanYou aren't aloneYou have permission to speak freelyEven though we don't need that permissionSometimes we need to hear someone say it To give it to ourselves#investments #funds #startups #founders #personalbranding #storytelling

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