By Paul Erlich

Mutual funds are often touted as the most effective and convenient tools for individual investors and managers to build diversified portfolios.

However, investor experience is often...

Many large financial intermediaries and high net worth investors invest in Private Equity funds.  The consulting firm Cambridge Associates reports that the 25-year return on private equity of 13.5% can be compared to the Russell 2000 9.75% return over the same period.  Similarly, in the survey article by Kaplan and Sensoy, they find that private equity

At New Frontier, we believe in strategic investing. We believe that markets are mostly unpredictable and that making directional bets on market performance or individual securities is largely a fool’s errand. Over most time periods some securities increase in value, whereas others decrease, almost all unpredictably.  With that...

New Frontier is a multi-asset manager that invests primarily with exchange traded funds (ETFs).  ETFs are often compared to mutual funds which are also portfolio based investment products.  In most cases, ETFs function similarly to comparable mutual funds.  However, a recent instance of market volatility involving high yield securities highlighted an important...

New Frontier decided to include the iShares minimum volatility ETF (USMV) as part of our global strategic asset allocation fund universe. The purpose is to provide additional risk management capability primarily for lower systematic equity risk portfolios in the light of likely changes in Federal Reserve policy toward interest rate management. The portfolios include a modest al ...

On June 2nd, Vanguard announced they were redefining the indices tracked by four of their ETFs.* These are: Vanguard Emerging Markets ETF (VWO), Vanguard Developed Markets ETF (VEA), Vanguard European Stock ETF (VGK), and Vanguard Pacific Stock ETF (VPL). The transition will result in each ETF including small cap stocks. In addition,

We are pleased that Becker, Gürtler and Hibbeln (BGH), authors of “Markowitz versus Michaud: Portfolio Optimization Strategies Reconsidered,” are interested in assessing the investment value of Michaud optimization (Michaud 1990, Michaud and Michaud 2008), relative to Markowitz (1952, 1959). As they note, Markowitz and Usmen (MU) (2003) compared Markowitz vs. Michaud efficient frontier optimization in a simulation study...

The market for Target Date Funds (TDFs) has exploded in the last few years. These funds are popular among investors because they provide a sense of risk protection at a low cost. However, many issues have been rightly noted about these funds. Much has been...

By New Frontier

New Frontier’s GSAA funds attempt to capture every risk factor of the market that is available through exchange traded funds. Since their introduction in 1989-90, ETFs have proliferated and flourished as investment vehicles because of their attractive features of lower expense ratio, transparency, liquidity, tax structure, and stock-like trading. New ETFs are created continuall ...

Let’s assume that you want an excellent asset allocation, one designed to take on a particular level of risk while providing an expectation that the return will exceed returns generated without that risk. Michaud optimization, applied to a comprehensive global universe of funds providing exposure to multiple risk premia, gives a...