The Blog

FEATURED POST

Get our latest research insights, exclusive content and event invitations delivered straight to your inbox.  Follow us on Twitter.

  • ‘Tis the Season for Bold Prediction

    As we’ve written many times in the past, the human brain is not wired for objective assessment. Through the ages, environmental influences drove our brains to evolve survival mechanisms that interpreted the world by observing – and ultimately inferring – causal connections.

    Read more
  • Tactical Alpha Part III: Asset Allocation vs. Security Selection

    By far the greatest source of personal consternation as a professional in markets is investors’ obsession with finding the best stocks, or the best stock pickers. The fact that investors pursue this objective at all undermines all meaningful arguments about efficient markets. After all, why on earth would the well informed, rational…

    Read more
  • Tactical Alpha in Theory and Practice (Part II): Principal Component Analysis

    In Part I of this series, we explored Grinold’s Fundamental Law of Active Management, and why the theory leads to misguided conclusions in the presence of asset correlations. In this article we will offer a primer on a useful tool for portfolio evaluation, Principal Component Analysis (PCA), and illustrate how PCA can help quantify the number of independent bets…

    Read more
  • Experts Aren’t Helpful, and Other Useful Lessons From “DIY Financial Advisor”

    We draw a significant amount of inspiration for the material we cover on this blog from the publications of our financial brethren. Unfortunately, given the non-stop firehouse of information that increasingly characterizes the digital age, it’s nearly impossible to

    Read more
  • Tactical Alpha: Theory & Practice (Pt. I) – Fundamental Law of Active Management

    For the overwhelming majority of investors, portfolios are broadly organized into strategic silos of stocks and bonds, such as the ubiquitous 60/40 balanced portfolio. By design, the strategic proportions of stocks and bonds in the portfolio change very little over time. However, within each silo investors take active

    Read more
  • Apples and Oranges: A Random Portfolio Case Study

    This article was motivated by a provocative discussion with a thoughtful RIA. Let’s call him Harry.
    Harry expressed some disappointment with the performance of Global Tactical Asset Allocation (GTAA) strategies over the past few years relative to some popular tactical U.S. sector rotation funds. Harry’s definition of GTAA is any strategy that regularly alters its allocation across a …

    Read more
Load More

Get The Book

AAA-cover-final

“This book is relevant and recommended for investors who wish to learn more about harvesting factor premia.”

Research Affiliates

About Us

GestaltU is a forum for research, opinion pieces, and educational material from the team at ReSolve Asset Management. Our views are driven by evidence based finance, with a special focus on asset allocation; factors and smart beta; retirement and endowment strategies, and; quantitative methods.

Tweets

6 of 10 S&P sectors in earnings contraction. -4.3% in aggregate. Not just an energy story. twitter.com/not_jim_…

Quantocracy-gestaltu