Search found 974 matches

by HEDGEFUNDIE
Thu Nov 15, 2018 10:50 am
Forum: Investing - Theory, News & General
Topic: Vanguard's Quantitative Equity Group Losing Talent
Replies: 9
Views: 531

Re: Vanguard's Quantitative Equity Group Losing Talent

Quants have not delivered value anywhere, so what's the point :?: DFA, AQR, WisdomTree, Vanguard, Schwab, you name it, all have quants, these investments have not delivered any value over and beyond simple straight indexes. The only value they add is provide job opportunities for PhD's beyond acade...
by HEDGEFUNDIE
Mon Nov 12, 2018 9:26 am
Forum: Investing - Theory, News & General
Topic: Diversification Regret
Replies: 114
Views: 13019

Re: Diversification Regret

If you expected SCV to provide a return lower than that provided by a capitalization-weighted TSM, would you still add it to your portfolio, to increase "diversification"? Would you eat equal amounts of pickled pigs feet and hamburger, even though hamburger is far more popular, or would you be bett...
by HEDGEFUNDIE
Mon Nov 12, 2018 9:08 am
Forum: Investing - Theory, News & General
Topic: Diversification Regret
Replies: 114
Views: 13019

Re: Diversification Regret

I have to agree with Taylor on this one, even though I am personally invested in more than just large cap US stocks, and into disproportionate amount of US Small Value, Mid-Caps, etc. The difference is I do know that I am not diversifying, and instead concentrating by having my own personal weighti...
by HEDGEFUNDIE
Sun Nov 11, 2018 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: Paying life insurance for parents
Replies: 13
Views: 1268

Re: Paying life insurance for parents

Can you just offer your parents $50k out of your own resources? Would stop the drain on their/your bank account.
by HEDGEFUNDIE
Sun Nov 11, 2018 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: High Earners - What's Your Profession?
Replies: 702
Views: 113365

Re: High Earners - What's Your Profession?

Director at FANG company. Make ~$750k depending on RSU performance. DW works as a non-profit strategy consultant. ~$200k. I am in my early 40’s and she is mid 30’s with two small kids. We are both home before 6 pm most nights, but I do travel occasionally and have very early mornings. We are beyond...
by HEDGEFUNDIE
Sun Nov 11, 2018 9:18 am
Forum: Investing - Help with Personal Investments
Topic: Mid and Small Caps?
Replies: 38
Views: 3111

Re: Mid and Small Caps?

2 questions. 1) What small cap value index funds are suggested for Fidelity accounts? I see a small cap index , but its not specifically a 'value' fund. All their 'small cap VALUE' funds have an ER significantly higher the the small cap index fund. - 2) At VG, what is the difference between these 2...
by HEDGEFUNDIE
Sun Nov 11, 2018 9:16 am
Forum: Investing - Theory, News & General
Topic: Diversification Regret
Replies: 114
Views: 13019

Re: Diversification Regret

2007: Fama: Anybody who has studied that issue doesn’t come to the conclusion that there are huge opportunities in other markets that don’t exist in the United States. That’s kind of a standard line of international money managers, that the opportunities are better in international markets. That’s ...
by HEDGEFUNDIE
Sat Nov 10, 2018 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Confused about FSA when quitting mid-year
Replies: 9
Views: 729

Re: Confused about FSA when quitting mid-year

If you don’t use it you don’t get any money back. But you also don’t need to pay any back if you use more than you have contributed.

I suggest spending as much as you can before you quit.
by HEDGEFUNDIE
Sat Nov 10, 2018 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Alliant Visa [credit card]
Replies: 20
Views: 1693

Re: Alliant Visa

tj wrote:
Wed Nov 07, 2018 10:29 pm
HEDGEFUNDIE wrote:
Mon Nov 05, 2018 9:55 am
So the breakeven for the old card is $11,800 per year in spending for the extra 0.5% cash back to cover the annual fee.

I’ll be calling them today asking to convert my card to the new one.
Did they convert it?
Nope, they didn't. It would have to be a new application.
by HEDGEFUNDIE
Thu Nov 08, 2018 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: SMLF vs Normal SCV funds (IJS/VIOV, VBR, etc.)
Replies: 6
Views: 368

Re: SMLF vs Normal SCV funds (IJS/VIOV, VBR, etc.)

When you compare SMLF with the “regular” small cap fund IJR, the performance has been virtually identical. So I would not bother with it, given that it’s more expensive.

https://www.portfoliovisualizer.com/fun ... F07%2F2018
by HEDGEFUNDIE
Wed Nov 07, 2018 7:53 am
Forum: Personal Finance (Not Investing)
Topic: New job concerns
Replies: 28
Views: 2213

Re: New job concerns

You are making a huge deal out of a relatively minor issue. Tell your manager your train times (that are non-negotiable) and say you are happy to get any work done remotely as necessary. If your manager is not ok with that that’s her problem not yours. I doubt many in person meetings get scheduled a...
by HEDGEFUNDIE
Tue Nov 06, 2018 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Never thought of living in Bay Area but just got a call from Tesla
Replies: 72
Views: 7416

Re: Never thought of living in Bay Area but just got a call from Tesla

This is basically a math problem. Figure out how much you would need to live in the Bay Area at your desired standard of living and savings rate. And then ask the recruiter if they can meet that. Btw, CA employers are required to tell you the compensation range for the position if you ask. Agree wit...
by HEDGEFUNDIE
Tue Nov 06, 2018 11:12 am
Forum: Personal Finance (Not Investing)
Topic: High Earners - What's Your Profession?
Replies: 702
Views: 113365

Re: High Earners - What's Your Profession?

DW & I are both internal business consultants, me for a small tech company, her for a F500. $450k combined comp.
by HEDGEFUNDIE
Tue Nov 06, 2018 1:56 am
Forum: Personal Finance (Not Investing)
Topic: Son has job offer in Nashville, can he survive on base of 33K
Replies: 16
Views: 2459

Re: Son has job offer in Nashville, can he survive on base of 33K

Considering the economy is in very good shape, for a professional sales job, even a first sales job, that is a very low salary offer for a new job. I suggest he decline the low ball offer and ask for them to up the base to a more reasonable salary amount for an IT sales job. Inside sales is the low...
by HEDGEFUNDIE
Tue Nov 06, 2018 1:32 am
Forum: Investing - Help with Personal Investments
Topic: Too Mid Cap Heavy in My Small Cap Funds--Best Alternative
Replies: 16
Views: 1171

Re: Too Mid Cap Heavy in My Small Cap Funds--Best Alternative

Trading volume for VIOO is too thin, IJR is much more liquid. When facing this question I opted for IJR. Trading volume is not an indicator of liquidity for index ETFs. The lower cost of IJR is a good reason to choose it: average daily volume is not. This thread is kind of winding, but it covers th...
by HEDGEFUNDIE
Mon Nov 05, 2018 6:07 pm
Forum: Investing - Help with Personal Investments
Topic: Too Mid Cap Heavy in My Small Cap Funds--Best Alternative
Replies: 16
Views: 1171

Re: Too Mid Cap Heavy in My Small Cap Funds--Best Alternative

All three of those options track the S&P 600 and are basically identical. I would go with IJR because it is the cheapest.
by HEDGEFUNDIE
Mon Nov 05, 2018 1:24 pm
Forum: Investing - Theory, News & General
Topic: Portfolio management by age
Replies: 10
Views: 787

Re: Portfolio management by age

Money is money. It doesn’t matter if you get it from dividends or selling shares, you end up in the same place.

You do realize that a company’s share price drops by the dividend amount paid? And also that a company can cut or suspend its dividend at any time?
by HEDGEFUNDIE
Mon Nov 05, 2018 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: Percentage of small-caps in an aggressive portfolio
Replies: 17
Views: 916

Re: Percentage of small-caps in an aggressive portfolio

milosz19 wrote:
Mon Nov 05, 2018 12:34 pm
I see that two respondents emphasized small-cap stocks for their international equities. What are the reasons here?
International small caps have historically been less correlated with TSM than international large caps, as well as historically performing better.
by HEDGEFUNDIE
Mon Nov 05, 2018 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Percentage of small-caps in an aggressive portfolio
Replies: 17
Views: 916

Re: Percentage of small-caps in an aggressive portfolio

Small cap is 1/3 of my US equities and 2/3 of my international equities.
by HEDGEFUNDIE
Mon Nov 05, 2018 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Alliant Visa [credit card]
Replies: 20
Views: 1693

Re: Alliant Visa

So the breakeven for the old card is $11,800 per year in spending for the extra 0.5% cash back to cover the annual fee.

I’ll be calling them today asking to convert my card to the new one.
by HEDGEFUNDIE
Sun Nov 04, 2018 10:37 am
Forum: Investing - Theory, News & General
Topic: "Individual investors should have access to Private Equity"
Replies: 46
Views: 3421

Re: "Individual investors should have access to Private Equity"

1) The theory behind cap-weighted total stock market indexing is that it is supposed to mirror the "market portfolio," which consists of all of the assets trading within a market. That means the public market. Since private equity doesn't trade freely, publicly, or frictionlessly in the same market...
by HEDGEFUNDIE
Sun Nov 04, 2018 10:24 am
Forum: Investing - Theory, News & General
Topic: "Individual investors should have access to Private Equity"
Replies: 46
Views: 3421

Re: "Individual investors should have access to Private Equity"

... If Vanguard started to include private equity into TSM would any Bogleheads really complain? Not only would they complain, they would probably exit the fund en masse as quickly as they could (which might be difficult given the lack of liquidity in private equity). I don’t know, it would seem to...
by HEDGEFUNDIE
Sun Nov 04, 2018 9:57 am
Forum: Investing - Theory, News & General
Topic: Corp. high-yield bonds better than international for diversification?
Replies: 16
Views: 1291

Re: Corp. high-yield bonds better than international for diversification?

[US] High yield corporate bonds have actually been slightly more correlated with international stocks than US stocks. https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=VTSMX+VGTSX+VWEHX&endDate=11%2F03%2F2018&timePeriod=1&numTradingDays=60 So if you wanted to improve your portfolio ...
by HEDGEFUNDIE
Sun Nov 04, 2018 9:36 am
Forum: Investing - Theory, News & General
Topic: Diversification Regret
Replies: 114
Views: 13019

Re: Diversification Regret

I regret being "diversified" in international. It's roughly correlated with domestic equities, but just doesn't rise as fast on the way up. It seems to drop just as fast, though. I read learned Bogleheads, led by the namesake himself, declaring that there is no justifiable reason to own internation...
by HEDGEFUNDIE
Sun Nov 04, 2018 1:19 am
Forum: Investing - Theory, News & General
Topic: "Individual investors should have access to Private Equity"
Replies: 46
Views: 3421

Re: "Individual investors should have access to Private Equity"

...Hedge funds are not meant to outperform the market every year. Hence the word “hedge.” Ted Seides did not bet Buffett that his portfolio of hedge funds would outperform the S&P 500 every year. He bet Buffett a million dollars that it would outperform the S&P 500, cumulatively , over a period of ...
by HEDGEFUNDIE
Sat Nov 03, 2018 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: Is an MBA worth it these days?
Replies: 53
Views: 6294

Re: Is an MBA worth it these days?

Here’s my take. If you have interpersonal skills, grit, decent looks, work ethic, common sense and intelligence, you have everything you need to succeed in the business world, including high paying industries. And how many people do you know possess all the above attributes? For anyone who isn’t Su...
by HEDGEFUNDIE
Sat Nov 03, 2018 9:29 pm
Forum: Investing - Theory, News & General
Topic: Diversification Regret
Replies: 114
Views: 13019

Re: Diversification Regret

fortyofforty wrote:
Sat Nov 03, 2018 9:02 pm
At what point do you dump an underperformer, and when do you give up on the "experiment" or the "theory" or the "hypothesis", especially when it might be unnecessary overdiversification?
You don’t.

Learn to enjoy the pain.
by HEDGEFUNDIE
Sat Nov 03, 2018 11:09 am
Forum: Investing - Theory, News & General
Topic: "Individual investors should have access to Private Equity"
Replies: 46
Views: 3421

Re: "Individual investors should have access to Private Equity"

The most actionable takeaway from this topic is that it is irrelevant to a Boglehead. It has been consistently shown that Hedge Funds, IPOs and Private Equity have similar or worse performance than Active Mutual Funds. The vast majority of them under perform the market every year. I guess the OP mi...
by HEDGEFUNDIE
Fri Nov 02, 2018 6:45 pm
Forum: Investing - Theory, News & General
Topic: Nationwide Maximum Diversification Core US Equity ETF MXDU?
Replies: 5
Views: 234

Re: Nationwide Maximum Diversification Core US Equity ETF MXDU?

You should read this thread and see if you agree with the concept of “diversification ratio”

viewtopic.php?t=251043
by HEDGEFUNDIE
Fri Nov 02, 2018 4:15 pm
Forum: Investing - Theory, News & General
Topic: "Individual investors should have access to Private Equity"
Replies: 46
Views: 3421

Re: "Individual investors should have access to Private Equity"

Not understanding. Why should the government tell me who I should be doing business with? The government is not telling you to do anything. This group is an advisory body, not technically part of the government. And even if these changes get implemented, all it will do is give you more investment c...
by HEDGEFUNDIE
Fri Nov 02, 2018 4:10 pm
Forum: Investing - Theory, News & General
Topic: "Individual investors should have access to Private Equity"
Replies: 46
Views: 3421

Re: "Private investors should have access to Private Equity"

After last week's Frontline program https://www.pbs.org/wgbh/frontline/film/the-pension-gamble/ I'm not sure that retirement programs should be investing in private equity, especially hedge funds. The majority of people on the KY pension boards were not versed in investments. I'm not a fan of hedge...
by HEDGEFUNDIE
Fri Nov 02, 2018 3:35 pm
Forum: Investing - Theory, News & General
Topic: "Individual investors should have access to Private Equity"
Replies: 46
Views: 3421

"Individual investors should have access to Private Equity"

So says a committee of academics and major financial services firms, including Vanguard . https://www.capmktsreg.org/2018/10/30/expanding-opportunities-for-u-s-investors-and-retirees-private-equity/ Full report: https://www.capmktsreg.org/wp-content/uploads/2018/10/Private-Equity-Report-FINAL-1.pdf
by HEDGEFUNDIE
Fri Nov 02, 2018 2:55 pm
Forum: Investing - Theory, News & General
Topic: Bonds -- am I missing something?
Replies: 6
Views: 715

Re: Bonds -- am I missing something?

bck63 wrote:
Fri Nov 02, 2018 2:44 pm
But if I have no intention of selling, I'm making out in terms of increased yield, right?
Right.
by HEDGEFUNDIE
Fri Nov 02, 2018 12:50 pm
Forum: Investing - Theory, News & General
Topic: Diversification Regret
Replies: 114
Views: 13019

Re: Diversification Regret

Not following. You are comparing the S&P 500 to a "diversified" portfolio with large cap, long bonds, only emerging international and small cap value? Brings us full circle on the definition of diversified. :| How about comparing Total World + 20% Int-Term Bonds to a tilted portfolio of Large cap, ...
by HEDGEFUNDIE
Fri Nov 02, 2018 12:24 pm
Forum: Investing - Theory, News & General
Topic: Diversification Regret
Replies: 114
Views: 13019

Re: Diversification Regret

Excellent post. Your "diversification regret" is basically the "frame of reference risk" folks talk about. I have NO CLUE why folks follow popular benchmarks like the sp500. I never did when I started investing and I still don't. It makes it seem to the investor they are doing something wrong when ...
by HEDGEFUNDIE
Fri Nov 02, 2018 12:07 pm
Forum: Investing - Theory, News & General
Topic: Diversification Regret
Replies: 114
Views: 13019

Re: Diversification Regret

Not following. You are comparing the S&P 500 to a "diversified" portfolio with large cap, long bonds, only emerging international and small cap value? Brings us full circle on the definition of diversified. :| How about comparing Total World + 20% Int-Term Bonds to a tilted portfolio of Large cap, ...
by HEDGEFUNDIE
Fri Nov 02, 2018 11:33 am
Forum: Investing - Theory, News & General
Topic: Diversification Regret
Replies: 114
Views: 13019

Re: Diversification Regret

I like the approach vineviz. In practice, there would be a few “capitulation points” where the 100% S&P 500 investor threw in the towel and sold everything due to severe drawdown, capitulations which would not occur as often with a diversified portfolio. This behavioral-informed comparison would hav...
by HEDGEFUNDIE
Fri Nov 02, 2018 8:39 am
Forum: Investing - Theory, News & General
Topic: An extreme example of inflation and a mortgage
Replies: 37
Views: 3184

Re: An extreme example of inflation and a mortgage

What several commenters miss is that the lenders are not the lenders. What I mean is that the original lender, the bank, sells the vast majority of its mortgage loans to another party, often the government sponsored enterprises Fannie Mae and Freddie Mac, who then issue bonds backed by the mortgage...
by HEDGEFUNDIE
Fri Nov 02, 2018 8:09 am
Forum: Investing - Theory, News & General
Topic: An extreme example of inflation and a mortgage
Replies: 37
Views: 3184

Re: An extreme example of inflation and a mortgage

“Tearing up the deal” just means the borrower prepaying the mortgage during declining rates, the odds and impact of which can be quantified. Just like the odds and impact of rising rates can be quantified. The lender is accounting for both risks when setting the fixed interest rate. For the lender ...
by HEDGEFUNDIE
Fri Nov 02, 2018 7:25 am
Forum: Investing - Help with Personal Investments
Topic: Panic set in... now what?
Replies: 63
Views: 10909

Re: Panic set in... now what?

The good news is if you were 80/20 all the way until last week, you benefited greatly from the equity run-up, and you very likely ended up ahead of someone who was in a more “appropriate” AA this whole time.

Going forward though, pick the more appropriate AA.
by HEDGEFUNDIE
Fri Nov 02, 2018 7:16 am
Forum: Investing - Theory, News & General
Topic: An extreme example of inflation and a mortgage
Replies: 37
Views: 3184

Re: An extreme example of inflation and a mortgage

But the lenders understand this asymmetry upfront, and so should be baking it into the fixed rate... What does it matter what they bake in, and why, if the other party has the power to tear up the deal when it goes against him? “Tearing up the deal” just means the borrower prepaying the mortgage du...
by HEDGEFUNDIE
Fri Nov 02, 2018 6:53 am
Forum: Investing - Theory, News & General
Topic: REITS have beaten other stocks for 50 years
Replies: 31
Views: 2958

Re: REITS have beaten other stocks for 50 years

...Yes during 2008 the correlation went to 1, but that is to be expected as that crisis had its roots in real estate... REITs represent commercial real estate and crashed in late 2008. The crisis in "real estate" occurred in residential real estate in 2006. Please connect the dots for me. I always ...
by HEDGEFUNDIE
Fri Nov 02, 2018 6:22 am
Forum: Investing - Theory, News & General
Topic: An extreme example of inflation and a mortgage
Replies: 37
Views: 3184

Re: An extreme example of inflation and a mortgage

I am pushing back against the stated claim in this thread that a fixed rate mortgage “is a great inflation hedge.” Unless there is evidence that the fixed rate upon inception systematically underestimates future inflation due to some structural feature of our mortgage markets... I agree that expect...
by HEDGEFUNDIE
Fri Nov 02, 2018 5:07 am
Forum: Investing - Theory, News & General
Topic: Why I'm 100% stocks
Replies: 149
Views: 17193

Re: Why I'm 100% stocks

Valuethinker wrote:
Fri Nov 02, 2018 5:02 am
Academic studies of retirement options suggest that individual investors massively underannuitize.
Is this true even after accounting for social security and annuities’ fees?
by HEDGEFUNDIE
Fri Nov 02, 2018 4:45 am
Forum: Investing - Theory, News & General
Topic: REITS have beaten other stocks for 50 years
Replies: 31
Views: 2958

Re: REITS have beaten other stocks for 50 years

REOCs are companies, straight up. So it's not clear that they should have different characteristics than stocks as a whole, other than being in a particular sector. Theoretically this is true, but interestingly enough REITs have had the lowest correlation to TSM of any major equity asset class, inc...
by HEDGEFUNDIE
Fri Nov 02, 2018 4:15 am
Forum: Investing - Theory, News & General
Topic: An extreme example of inflation and a mortgage
Replies: 37
Views: 3184

Re: An extreme example of inflation and a mortgage

Aren’t inflation expectations over the life of the mortgage baked into the fixed interest rate upon inception? I mean, isn’t this why fixed rate mortgages almost always carry a higher rate than ARMs? I am guessing your question is rhetorical? The yield curve is normally upward sloping, yes. And if ...
by HEDGEFUNDIE
Fri Nov 02, 2018 3:03 am
Forum: Investing - Theory, News & General
Topic: An extreme example of inflation and a mortgage
Replies: 37
Views: 3184

Re: An extreme example of inflation and a mortgage

Aren’t inflation expectations over the life of the mortgage baked into the fixed interest rate upon inception? I mean, isn’t this why fixed rate mortgages almost always carry a higher rate than ARMs?
by HEDGEFUNDIE
Thu Nov 01, 2018 5:29 am
Forum: Personal Finance (Not Investing)
Topic: Is an MBA worth it these days?
Replies: 53
Views: 6294

Re: Is an MBA worth it these days?

I recently graduated from a top tier MBA and had classmates who were interested in real estate. The majority of them wanted to get into real estate development or real estate private equity, as I recall. The “investment” side of real estate. Some of them already worked in the construction industry. ...
by HEDGEFUNDIE
Wed Oct 31, 2018 7:41 am
Forum: Investing - Theory, News & General
Topic: Why I'm NOT 100% stocks
Replies: 36
Views: 5117

Re: Why I'm NOT 100% stocks

Historically, an 80/20 split between stocks and bonds has delivered roughly the same compound returns as a 100% stock allocation but with much less in the way of drawdowns and risk. Every analysis I've ever seen to "prove" this point is historical cherry picking. 1982 was the start of a bull market...
by HEDGEFUNDIE
Wed Oct 31, 2018 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Is it more advantageous to live in HCOL or LCOL area in terms of financial independence?
Replies: 180
Views: 10987

Re: Is it more advantageous to live in HCOL or LCOL area in terms of financial independence?

Some high paying jobs pay more in HCOL areas, more than enough to make up for the HCOL. Tech in SF, finance in NY, etc. This is my second year living in the Bay Area, having moved here from Chicago. I am able to save $30k more here than if I had stayed in Chicago. That $30k goes into the same stock ...