Diversification matters but what guide do investors have to indicate a fund’s level of diversification? In this brief note we point out that the standard measure can be misleading, and we propose an alternative.VIEW
Garrett, Bernd and Andrew have all featured in a variety of articles, essays and videos, which you can access here:
Elroy Dimson: Six things investors need to know about the downturn. Do stock markets have further to fall? How long and severe will the recession be?VIEW
Professor Elroy Dimson is someone who understands more than just about anyone else alive today how financial markets have responded to economic shocks throughout history.VIEW
Advisers who thought that sustainable (or ESG) investing was a passing fad need to think again.VIEW
The event went extremely well and the questions and feedback we had on the day, from the advisers who attended was extremely valuable.VIEW
Q&A with Max Tennant and Garrett QuigleyVIEW
Sustainability or Environmental, Social and Governance (ESG) has become an increasingly popular topic in investment management.VIEW
There has been widespread adoption of sustainable approaches to investing over recent years.View
Summarising recent empirical evidence on equal sector-weighted portfolios in the UK.VIEW
Here are some educational videos which we’ve made or featured in, which help to explain some of the principles which make up our investment approach:
GSI – Beyond the Cap-Weighted Index
Dr. Nick Motson of Cass Business School discusses issues with investing in market-weighted index portfolios, which tend to be heavily concentrated in a small number of mega-cap stocks. Alternative, more diversified approaches have generated superior risk-adjusted returns in the past, mostly due to their exposure to value and size factors.
A Dummy’s Guide to Smart Beta, part three
The term “beta” was first introduced by Nobel Laureate William Sharpe in the 1960s. In simple terms, it denotes the risk of the stock market. But in the intervening half a century, several other risk factors have been identified and quantified. Features Garrett and Bernd on GSI’s model, which increases diversification in a cap-weighted portfolio to smooth out the highs and lows.
Passive Investing Theory, part four: Portfolio Theory
Diversification has been called ‘the only free lunch in investing’ and is the driver behind Portfolio Theory, developed in 1952 by Harry Markowitz and later expanded upon by William Sharpe in his Capital Asset Pricing Model, and Eugene Fama and Kenneth French in their Three Factor Model. With contributions from Garrett and Bernd.
Passive Investing Theory, part two: The Random Walk
Exploring the foundations of passive investing and the men who brought it to global significance. This video describes the Random Walk theory: the belief that share prices are not predictable as they are based on reaction to information that is being fed into the market completely randomly. Features Bernd, alongside other industry specialists.