Manager Audit Articles

Verify

When to Fire an Investment Advisor

Question: When, if ever, should a business manager recommend that their client fire their investment advisor? Answer: It will be time for your client to part ways with their investment...
Duty to Balance Risk and Return

A Business Manager's Duty to Monitor the Risk and Return of their Clients' Investment Portfolios

The Problem: You are a business manager and it is either explicitly or implicitly the case that you are responsible for monitoring the activities of the investment managers that have...
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Trust But Verify: Do Private Equity and Hedge Funds Deliver Superior Risk-adjusted Returns?

For several decades, the investment industry has promoted the virtues of hedge funds and private equity funds for large instructional investors and ultra high net worth individuals. But over the...
Wading Pool

Is your client’s investment advisor better than average?

Vanguard vs. Client: The Vanguard LifeStrategy Moderate Growth Fund (VSMGX) is (1) well diversified (60% global stocks and 40% bonds), (2) inexpensive (0.15% per year), (3) has a long and...
Kings Clothes

The Emperor Has No Clothes

The investment industrial complex does not want you to know how to evaluate its members. If it did you would have easy access to the following data: Each investment advisor...