Narrative

From our A-Team of seasoned subject matter experts, the Narrative is an evolving stream of perspectives and insights on a broad range of financial subjects and asset classes. Please read, enjoy and share.

Author: Jeremy L. Radcliffe
Date: March 24, 2017
Category: Rabbit Hole
Tags: Houston, baseball, Bill Simmons, rabbit hole

I get to play GM in this business that we’ve built at Salient, and Ben’s not the only talent I can claim (some) credit for “drafting.”

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The Rabbit Hole: The War on Bad Science

Author: Jeremy L. Radcliffe
Date: March 24, 2017
Category: Rabbit Hole
Tags: science, medicine, fake news

A methodical dissection of the peer-reviewed studies underpinning all sorts of critical science reveals that they are likely highly flawed.

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I Am Spartacus: The Five Things that Don’t Matter | Part 1

Author: Rusty Guinn
Date: March 17, 2017
Category: Theory in Action
Tags: active management, passive management, S&P 500, Russell 2000, Russell 1000, diversification, large-cap, small-cap, mid-cap, mega-cap, MLP, costs, volatility, Spartacus, things that matter

It seems like every few years the debate on active vs. passive management comes back in full force — not that any of this is new, of course. DFA, Vanguard, and brilliant investors and writers like Charlie Ellis have been shouting from the mountaintop about what a waste of time active management is for decades now. So why the breathless excitement from the financial press on the topic this time? Mostly because they haven’t the faintest idea what they’re talking about.

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A Man Must Have a Code

Author: Rusty Guinn
Date: March 5, 2017
Category: Theory in Action
Tags: investment philosophy, code, poker, worldview, Dalio, Bridgewater, Dimensional Fund Advisors, DFA, things that matter

A few years back I worked with the Teacher Retirement System of Texas. I was responsible for hiring ostensibly sophisticated money managers—the type hedge funds and others generally regarded as some of the most intelligent people our society has to offer. But the most impressive people I worked with were not London-based portfolio managers but two of my fellow laborers. At a public pension plan in Austin. Go figure.

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