TRAILS

2018
29 Jan

2018: A review of investment returns

After six consecutive years of positive returns, in 2018 the UK stock market declined by 9.5%, while the global stock markets declined by about 3%. A careful observer might argue that a ‘correction’ was long overdue, given the generous return of prior years. However, that hasn’t...

diversification
29 Jan

Reaping the benefits of diversification

As we’re sure you know by now, diversification is a hallmark of our investment, not just across asset classes but also across geographies and risk factors. We implement this idea is through diversification: Across global mainstream stocks, bonds and property shares (known as Real Estate...

bookjan
29 Jan

Book Review: The Behavioral Investor by Daniel Crosby

In this book, Dr Crosby examines the human behavioural tendencies that often get in the way of investment success. Crosby analyses sociological, neurological and psychological conditions that influence our investment decisions and provides practical solutions for resolving these issues. The Behavioral Investor then transfers these lessons...

david-booth
29 Jan

David Booth on Forecasting

In the following video, Dimensional founder David Booth reflects upon decades of experience of operating in the capital markets to explain a valuable point regarding many of the issues we’ve discussed in this newsletter. As long-term investors, we try to ignore the ‘noise’ emanating from the...

art1-nl-aut
25 Sep

Lessons from the Global Financial Crisis

This year marks the 10th anniversary of the collapse of U.S. investment bank Lehman Brothers. The run on the bank, previously seen as indestructible, sent shockwaves through global markets, sparking a series of event from which we have yet to properly recover. Financial journalist Jason Zweig...

art-2-aut
25 Sep

Pursuing an evidence-based investing approach

We are often asked about the reasoning behind our investment approach and although related to a different field, we feel the following tale perfectly illustrates our philosophy. In the early hours of a December morning in 1799, physicians were called to examine a recently retired gentleman...

art2
26 Jun

A Tale of Complex Investment

A recent article in the Guardian highlights one of the major failings of the investment management industry: the Standard Life GARS fund The largest actively-managed fund in the UK manages over £20billion in assets, however its ‘ridiculously complex’ structure has undermined its value. Over the past...