FMD Capital Management

Posts Tagged: active

Marrying Active and Passive Management

Written by David Fabian, October 03rd, 2017

One of the latest stories making the rounds on social media is that Warren Buffett is willing to wager (once again) that an index fund can beat active management over a 10-year time horizon.  Buffett made this bet with a prominent hedge fund manager nearly a decade ago with the proceeds going to a charity of the winners choosing.  He handily beat his first opponent and now another contender wants to take a shot at “The Oracle of Omaha”.  Read the complete post here on CNBC for all the details on this potential match-up.    Read more

Are Active Stock Picking ETFs Missing The Point?

Written by David Fabian, August 29th, 2017

The influx of capital into exchange-traded funds has prompted many active managers to take a hard look at their business models. The old days of high-fee mutual funds, hedge funds, and separate accounts are becoming harder to justify. Investors want transparency, they want liquidity, and they want low-cost.

Those are the hallmarks of the exchange-traded fund platform. It’s why companies like BlackRock and Vanguard have expanded their asset management businesses by hundreds of billions of dollars over the last several years. This is a freight train of capital moving in virtually one direction with no signs of slowing down.

Read the complete article at NASDAQ.com

Put TCW’s New Actively Managed Bond ETF On Your Watch List

Written by David Fabian, July 22nd, 2017

I’ve always been a big fan of actively managed bond funds as a way for investors to access risk managed or alpha-generating strategies.  Unlike active stock pickers, the best managers from the likes of PIMCO, DoubleLine, Guggenheim, and Loomis Sayles have proven track records of adding value for their investors versus a passive benchmark.  Fixed-income is still one of those asset classes where sector positioning, duration targeting, and credit selection can make a huge impact on net returns.

Look back through my blog and you will see numerous references to some of my favorite funds like the DoubleLine Total Return Bond Fund (DBLTX) or the PIMCO Income Fund (PONDX).  We have owned both for our clients and in our own accounts for years.  Read more

4 Key Factors To Consider Before Selecting An Active ETF

Written by David Fabian, June 13th, 2017

ETF investors have wholeheartedly embraced the transparency and low-cost of passively managed investment vehicles.  Billions of dollars every year since the great financial crisis have left the obfuscated world of high-priced mutual funds and transitioned into index-based ETFs.

This rotation is almost entirely based on the foundation that you know exactly what you own, why you own it, and what the minimal expenses will be. There is a comfort and reliability that the fund will perform to an exacting standard with very little deviation from its benchmark.

Read the complete article at NASDAQ.com

3 Active Vanguard Funds That Would Make Great ETFs

Written by David Fabian, March 03rd, 2017

Vanguard ETFs have become a juggernaut in the world of passive investment management.  They are widely used across retail, institutional, and retirement plans as an effective way to get low-cost, liquid, tax efficient, and dependable exposure to both stocks and bonds.  You simply can’t go wrong when choosing one of their funds as a core or tactical holding within your ETF portfolio.  Read more