Like all industries, there is a pecking order in the investment arena, a hierarchy, if you will. At the top of the financial pyramid are the hedge fund and private equity businesses. At the base of the pyramid is the bank teller. While often grouped together, the hedge fund and private equity businesses are very…
You may have heard on Friday or over the weekend that a very large bank in California went belly up. Silicon Valley Bank was a very popular bank with emerging companies and venture capitalists. Details are still emerging about how the bank was mismanaged, but liquidity dried up when the bank said they needed to…
The market continues its roller coaster ride for 2022. Typical stock mutual funds are down 20%. This decline is problematic enough, but adding insult to injury, taxes are about to make it worse for fund owners. Long-time readers will remember my numerous posts about the tax differences between various mutual fund structures. Since deferral or…
Rather than count the ways, let’s just discuss one for today – tax efficiency. Traditional Mutual Funds Traditional mutual funds, like those from Fidelity, Putnam, or any other fund company, have a particular type of accounting that results in tax inefficiencies for investors. Accounting rules for these open-ended mutual funds force all fund shareholders to…
I was going to begin this musing with “don’t get me started,” but it’s too late for that. I could rant all day about how unfair it is to take money from one group and give it to another, especially when blue-collar taxpayers will end up footing the bill for white-collar kids. Giveaways like student…
Segment’s strategies are grounded in decades of experience of dealing with things as they are and not as we wish them to be. Sometimes this puts us twenty years ahead of the crowd. With 2021 came a “new” trend: Direct Indexing! Back in 2003, I attended a dinner meeting with an executive from one of the…
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