It is no secret that compliance can get complicated for financial advisors. In the last few years, confusion regarding the DOL Fiduciary rule and additional changes in SEC regulations has forced firms to reassess some of their most basic processes and operations. According to the RIA Sentiment Survey released by TD Ameritrade, 30% of RIAs [...]
Top Podcasts for Financial Advisors We've compiled a list of the best podcasts for financial advisors currently available. We took into consideration duration, frequency of episodes, entertainment value, and of course, the quality of the content itself. Below you'll find our top recommendations, which includes a little something for everyone! Some podcasts cover market commentary, [...]
In this quarter's edition of the Journal of Investment Management, Windham associate Savannah Smith provided a book review of "Rational Investing: The Subtleties of Asset Management" by Hugues Langlois and Jacques Lussier. It may sound odd, but the word that comes to mind when describing this book is humble. Langlois and Lussier are humble [...]
Risk in the Real World The Challenge G.H. Hardy, the legendary mathematician, once claimed that his greatest disappointment in life was learning that someone had discovered an application for one of his theorems. Although Hardy’s disinterest in practical matters was a bit extreme, it sometimes seems that scholars view the real world as an [...]
In our new web-based platform, Portfolio Lab, we introduced our new Scenario Analysis feature. Scenario Analysis allows users to run simulations of proposed portfolios against a client’s current portfolio and see how the proposed position would have held up during historic market events. In this article, we will discuss a few ways that advisors [...]
Earlier this year, we met with Vasyl Soloshchuk of WealthTech Club for a series of conversations about what we do here at Windham Labs. We discussed the baseline from which we conduct our research and build our products, the direction of fintech, and some of the innovations behind our platform. WealthTech Insights #54: Big [...]
In the 65 years since Harry Markowitz formalized the theory of asset allocation, academics and practicing investment professionals have sought to master the process, to solve the puzzle that is investment risk, and to find a “fool-proof” way to protect themselves from loss. As one of the most important challenges [...]
Suppose we want to estimate the future value of an investment based on its return history. This problem, at first glance, might seem pedestrian. Yet it involves subtleties that confound many financial analysts. Some analysts argue that the best guide for estimating future value is the arithmetic average of past returns. Others claim that [...]
OPTIMAL REBALANCING WITH THE MARKOWITZ VAN DIJK HEURISTIC Institutional investors usually employ mean–variance analysis to determine optimal portfolio weights. Almost immediately upon implementation, however, the portfolio’s weights become sub-optimal as changes in asset prices cause the portfolio to drift away from the optimal targets. In an idealized world (without transaction costs) investors would rebalance continually [...]
We’re halfway through the first month of 2019, which means that most of us have already given up on the New Year’s resolutions we made so optimistically on January 1st. Even though you may have abandoned your resolve to drink less coffee this year, we invite you to consider three NEW New [...]
