Hidden in Plain Sight
Global investment strategist, Joe Miletich and portfolio manager, James Stavena explore how investors can bridge the gap between indexed implementation and the desire for excess returns.
While investors are utilizing passive exposures as never before, this comes at a time of low expected future market returns. In our view, strategies that embed structural advantages are one of the most underexploited areas in the equity investment landscape. With sound academic underpinnings that rely on structural capital market relationships, we believe thoughtful tangent portfolios are worthy of strong consideration by investors who are frustrated with subpar results from many traditional strategies, yet still long for performance that can reliably beat an indexed approach to the US equity market at reasonable fees.