The Riskalyze Report

We’re going to try something new each week on TRB, something I’m calling the Riskalyze Report.

My friends at Riskalyze have offered me the opportunity to see which stocks and funds advisors all over the country are adding to their clients’ accounts and which ones they’ve been selling. Each week I’ll present you with the top three buys and sells and we’ll track how this progresses while trying to figure out what it says about the professional mindset.

This data has been aggregated from across the client accounts of the thousands of advisors who use the software. Most of it comes directly through the third-party custodians where advisors’ assets are held. Thanks to Aaron Klein and Mike McDaniel for granting me this access. I hope we can uncover interesting trends for you each week…

Riskalyze

Week of September 29th – October 3rd 2014:

Winners = top investments purchased by advisors for client portfolios that week
Losers = investments that advisors sold out of in client portfolios that week

Winners (advisor flows TO these investments increased substantially):  

Pimco Income Fund (PONPX, PODNX, PONAX)
First Eagle Global (SGENX, SGIIX)
Permanent Portfolio (PRPFX)

Losers (advisor flows FROM these investments increased substantially):

American Funds (AGTHX, ANCFX, CAIBX)
Microsoft (MSFT)
Short Longer Term Treasury (TBF)

Josh here – Mike mentions he was surprised to see PIMCO’s Income Fund see increased advisor interest in the week that included the departure of Bill Gross. I was too – you’d have thought the “headline risk” of the last week would have driven FAs to move client cash away from the entire firm, not just Total Return. In reality, it turns out that money was moved from one to the other, to some extent.

It’s worth noting that this particular fund was not run by Gross, but by Daniel Ivascyn, who is now the CIO of the whole firm and, for all intents and purposes, the reluctant Bond King in Waiting. If you’re an advisor who had sold the PIMCO research approach to your clients for years (decades?), then moving them into Ivascyn’s PIMCO Income Fund from the tumult at Total Return makes perfect sense and is very easily explainable.

***

A word about Riskalyze:

In my practice, we use Riskalyze software tools to help assess clients’ true risk tolerance and to test portfolio configurations that match up accordingly. It’s changed our practice for the better, as I explain here.

Check it out today!

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. DevOps companies commented on Feb 04

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2014/10/06/the-riskalyze-report/ […]