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  • Private Equity, High Fees and Risk: Oct 26, 2014

    John Gorlow | Oct 26, 2014
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    As recently as last year, and for the first time in 80 years, federal regulators lifted a ban on advertising allowing hedge funds and private equity buyout firms to now promote their products to the general public. This piece of legislation fundamentally changed the way in which private placement issuers raise money and affords them an opportunity to collect even more in management fees.

    For decades the private offering giants persuaded institutions and university endowments to entrust them with investing billions of their dollars while promising diversification and better returns than the general market.

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  • Financial Times | Top 300 Investment Advisor

    John Gorlow | Jul 02, 2014

    FT_300_LogoTo our surprise and delight we received this news late last week:

    “Congratulations! Cardiff Park Advisors has been named to the inaugural 2014 Financial Times 300 Top Registered Investment Advisers List…. In a field of outstanding financial professionals, the FT 300 should be considered a list of truly exceptional advisor firms.”

    Click here for the full report. 

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  • The Illusion of Understanding

    John Gorlow | Apr 23, 2014

    Human beings love to imagine connections between events where none really exist. For financial journalists, this is a virtual job requirement. For investors, it can be a disaster.

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  • Dividend Paying Stocks: Nov 5th 2013

    John Gorlow | Nov 05, 2013

    Since the early days of security analysis, research has emphasized the potential benefit of buying stocks at a price that is reasonable to the fundamentals. The oldest benchmark for valuation is the dividend yield. Stocks that trade at a high dividend yield are often referred to as value stocks. Stocks that trade at a low dividend yield are often referred to as growth stocks. Value and growth investing have given rise to dramatically different records of long-term performance. A large body of evidence suggests that there has been a higher long term-term return both domestically and internationally from investing in value stocks.

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  • Putting The Bond Market Jolt In Perspective: June 30, 2013

    John Gorlow | Jun 30, 2013

    Fixed-income funds are where investors traditionally look for safety and low volatility. Yet, the months of May and June were challenging for many fixed income investors, especially for those who have been reaching for higher yields. For example, mutual funds that invest in long-term U.S. Treasury bonds lost on average 6.25% in May and 3.25% in June. And funds that borrow to increase returns or that invest in higher yielding sectors such as privately issued mortgage backed securities and emerging market debt securities got hit even harder during a rough patch for bonds overall.

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  • Profitability:The Other Side of Value

    John Gorlow | Feb 24, 2013

    Theoretical and empirical work in finance over the past 50 years has led to an evolution in our understanding of how financial markets work. For instance, 40 years ago, building on the work of Harry Markowitz on portfolio selection and the efficient diversification of investments, William Sharpe and others initially thought there was only one dimension of expected returns in equity markets—the market itself.

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  • DFA Fund Returns vs Benchmarks:

    John Gorlow | Jan 21, 2013

    Facts: Indexes have no costs, but funds do. Most funds underperform their benchmark (BM) at a minimum by ther expense ratio and some additional amount related to turnover.

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  • Investing in Commodity Futures: Oct 25, 2012

    John Gorlow | Oct 25, 2012

    Investments into commodity-linked products have grown in recent years due to investors embracing alternative investments as a way to deal with inflation uncertainty in their portfolios.

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  • Understanding Low Volatility Strategies: August 24, 2012

    John Gorlow | Aug 24, 2012

    What are low volatility strategies? Low volatility strategies attempt to construct equity portfolios that minimize market risk. Investment risk is measured using historical returns and correlations between individual portfolios and stock market movements. Wall Street touts low volatility investment strategies as a hedge against market volatility because they are designed to carry less risk during periods of poor stock market performance. Low volatility investing is not a new concept but it has become increasingly popular given the high levels of market volatility experienced by equity investors during the 2008 financial crisis, the up-and-down movements in 2011, and the continued turbulence in 2012.

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  • Algorithms Take Over The Market: August 17, 2012

    John Gorlow | Aug 17, 2012

    Two weeks ago, one of Wall Street’s largest market-making and trading firms, relying on a computerized trading program, shook investors’ confidence in the market. Trying to gain an edge on its competitors, seventeen-year-old Knight Capital Group rushed out new trading software that wasn’t ready. Instead of fulfilling customer orders, the software unintentionally generated millions of erroneous trades, causing sudden wild price swings in dozens of stocks. As trading volumes expanded, some Wall Street participants profited from the unusually dramatic price swings triggered by the faulty software. Many retail customers, having no idea what was going on, wound up losing money. Some journalists accused Wall Street insiders of using their trading tactics to rip off small investors: but the opposite, in this case, seems more accurate. The mishap cost Knight $440 million in trading losses and forced them to accept a lifeline to skirt collapse.

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