Author Archives: Mike Kerins, CFA, FRM

Roulette has a Higher Chance of Success than Active U.S. Equity Funds

As the title suggests, the probability that an Active U.S. Equity Fund outperforms the index, over a 10 year period, is lower than playing roulette. We even compared it to American style roulette, which has an extra 00 compared to typical roulette. You should still buy U.S. … Read More

Mike Kerins Published on Seeking Alpha: Gold is a Terrible Inflation Hedge

Summary Gold has not been a great inflation hedge in the last 35 years. Cash (3-month Treasury Bill) has been a better inflation hedge. Gold has underperformed inflation by almost 100% over the last 35 years. Every time someone tells … Read More

Why Core Passive and Satellite Active Investing Makes Sense

Individuals and institutions can benefit from using the core passive & satellite active investment approach. Since the U.S. equity market is a very efficient market and most actively managed funds underperform the index, one should purchase an index fund such as … Read More

Mike Kerins Published to Seeking Alpha: Understanding Your Smart Beta

Smart beta strategies are not always smart and are not just beta. Smart beta ETFs can be used to take active positions relative to a given index. The goal of the smart beta ETF is to outperform the index, after … Read More

Over $20 Billion In Fees Are Wasted On U.S. Equity Active Management Every Year

Individuals and even large institutions pay too much for their U.S. stock market exposure. The U.S. stock market is one of the most efficient markets in the world. It generally doesn’t makes sense to use actively managed U.S. equity funds. This is the first of three … Read More