How are Active Managers Beating the Market? By Taking More Risk.

Savita Subramanian’s group at Bank of America Merrill Lynch is out with an update on the state of actively managed mutual funds, noting that “44% of all managers outperformed” the Russell 1000 index of US large caps year to date. “Value managers had the highest hit rate of 77%, while 36% of Growth and 29%…

Are Quants the New Systemic Risk?

The difference between this year’s Euro Brinksmanship and the old 2010-2011 version is that this time, the banks don’t give a f**k. Literally. The ECB is buying $60 billion or so of sovereign debt securities every month and the sovereigns have most of the “Greek risk” now. Remember back in 2011 when Bank of America…

This Week on TRB

Got to interview legendary Aerosmith drummer Joey Kramer this week, so cool!  These were the most read posts on the site this week, in case you missed it:

What you need to know about the FOMC’s dot plot

One of the greatest investors of all time, Peter Lynch, famously said “If you spend more than 13 minutes analyzing economic and market forecasts, you’ve wasted 10 minutes.” If you spend even a second thinking about dot plots, that’s a second you can never have back. There’s literally nothing stupider you could be paying attention…