April 20, 2017
First Quarter 2017: Investment Perspective
There is no perfect investment strategy or manager. As Charley Ellis called it decades ago, investing is a loser’s game—a game best won by avoiding losses. Study after study over the past 20 years has shown that investors in aggregate lose by chasing hot asset classes, strategies, and managers, while abandoning lagging asset classes, strategies, and managers. This truth applies to indexing as well. Once one comes to this realization, investing becomes much easier. All investment strategies and managers have strengths and weaknesses. All investment strategies and managers have periods of over- and under-performance. There is no “all-weather” strategy. We need to pick one that best meets our needs and personality and stick to it over time. Sure, we should seek to improve upon it over time, but we must be careful that what we are calling improvement is not simply strategy switching or manager jumping in disguise.
On a quarterly basis, Hirtle Callaghan publishes our perspective on the current market. We have included the first page of that piece below. If you would like to receive the full perspective, please contact us.