Can Access to Financial Markets Be Democratized?

Robinhood Financial and their quest to democratize access to financial markets ran into another speed bump this week, with Robinhood agreeing to pay a $1.25M fine to FINRA as a result of failing to insure the order flow they sold to third parties for execution without considering such factors as “price improvement” and best execution….

Bad Blood

Theranos was once considered the darling of Silicon Valley (for an overview, see our past insight here). As a private technology company founded by Elizabeth Holmes in 2003, Theranos purported to have revolutionized blood testing by requiring only a fraction of the blood needed in traditional tests. The company was able to raise more than…

Who Should Have a Fiduciary Obligation in Investment Management?

The financial services industry in North America has long had an image problem when it comes to financial advice offered to retail clients. Confusion among investors to the role their advisors play as it pertains to product recommendations has not helped alleviate concerns around mistrust and whether these financial professionals ultimately have the best interests…

The Man Who Solved the Market

Until recently, stories about the investment management firm Renaissance Technologies and its flagship Medallion fund were relegated to hedge fund mythology and investor folklore. Unverifiable anecdotes around performance numbers trouncing the S&P 500 left many wondering if the team at Renaissance had managed to “crack” financial markets and whether the rumors were too good to…

Can Concentrated Portfolios Compete with ETFs?

As low-cost indexing strategies – usually in the form of ETFs – have increased in popularity, we’ve frequently opined that one of the major changes for the investment industry will be the shrinking of investment funds that are providing “high-cost” beta. We would define high-cost beta as an investment fund that charges management fees over…