Comments on: “Crisis = Opportunity” (oh please) http://venturepopulist.com/2009/04/chaos-opportunity-oh-please/ "Venture to the People" Fri, 30 Jul 2010 16:09:31 -0400 http://wordpress.org/?v=2.8.6 hourly 1 By: Venture Populist » Blog Archive » Playing The Angel http://venturepopulist.com/2009/04/chaos-opportunity-oh-please/comment-page-1/#comment-200 Venture Populist » Blog Archive » Playing The Angel Mon, 28 Sep 2009 00:46:59 +0000 http://venturepopulist.com/?p=430#comment-200 [...] You are in the business of wealth preservation and wealth creation.  Without question, the primary source of family wealth in America is the result of private enterprise and private venture investments characterized by [...] [...] You are in the business of wealth preservation and wealth creation.  Without question, the primary source of family wealth in America is the result of private enterprise and private venture investments characterized by [...]

]]> By: VP http://venturepopulist.com/2009/04/chaos-opportunity-oh-please/comment-page-1/#comment-8 VP Thu, 14 May 2009 03:09:43 +0000 http://venturepopulist.com/?p=430#comment-8 Matthew, thank you for your post. We certainly see things differently with respect to MPT and I will address your comment in a subsequent post. But in addition to agreeing to disagree, I should clarify that I don’t have any business to “pump” to advisors. I do regularly advocate that investors, and their advisors, more aggressively evaluate and allocate to private venture investment opportunities. In supporting my assertions, I can draw from my career experiences as a registered investment advisor, private investment counsel, the head of a multi-billion dollar alternative investment group, a private venture investor, financier and venture catalyst. I am not an “academic” but I do have real world experience in these matters. I have had first hand experience with the disingenuous manner that Modern Portfolio Theory has been used by financial services firms and advisors to attract investor assets…and we have all had a couple of very harsh lessons with respect to the shortcomings of MPT. Trillions of lost investor dollars tells me that MPT does not work. Matthew, thank you for your post. We certainly see things differently with respect to MPT and I will address your comment in a subsequent post. But in addition to agreeing to disagree, I should clarify that I don’t have any business to “pump” to advisors. I do regularly advocate that investors, and their advisors, more aggressively evaluate and allocate to private venture investment opportunities. In supporting my assertions, I can draw from my career experiences as a registered investment advisor, private investment counsel, the head of a multi-billion dollar alternative investment group, a private venture investor, financier and venture catalyst. I am not an “academic” but I do have real world experience in these matters. I have had first hand experience with the disingenuous manner that Modern Portfolio Theory has been used by financial services firms and advisors to attract investor assets…and we have all had a couple of very harsh lessons with respect to the shortcomings of MPT. Trillions of lost investor dollars tells me that MPT does not work.

]]> By: John R. Cadigan http://venturepopulist.com/2009/04/chaos-opportunity-oh-please/comment-page-1/#comment-7 John R. Cadigan Wed, 13 May 2009 18:32:19 +0000 http://venturepopulist.com/?p=430#comment-7 Just yesterday I saw yet another client approved piece produced by one of our on long only investment management friends stating the perils of selling out of the market and therefore missing those few glorious days that drive performance - how pathetic. Advisors that go to clients with that message will not be in business for very long. It's about managing risk and diversification of return streams through alternative asset and strategies to compliment the traditional triumvirate of stocks, bonds and cash. For those who further believe the last the last two months market performance marks the return of the norm (orderly and upwards) should probably look at history for direction. Two decades of excessive leverage by institutions and individuals does not get solved easily. In the past 100+ years you have had 4 bears and 4 bull secular trends with the bear averaging over 12 years. We are, to say the least, not in average times so expect more to come. That means doing what the institutions and HNW have been doing for decades. Moving beyond reliance on just traditional assets. What's over 50 years old and considered modern? MPT..time to dust it off give it a face lift and focus on low to non correlating assets. Thanks for challenging the status quo and afflicting the comforted. The business is getting more challenging and fresh ideas are needed now more than ever to succcessfully meet the demands of our clients. Just yesterday I saw yet another client approved piece produced by one of our on long only investment management friends stating the perils of selling out of the market and therefore missing those few glorious days that drive performance – how pathetic. Advisors that go to clients with that message will not be in business for very long. It’s about managing risk and diversification of return streams through alternative asset and strategies to compliment the traditional triumvirate of stocks, bonds and cash.

For those who further believe the last the last two months market performance marks the return of the norm (orderly and upwards) should probably look at history for direction. Two decades of excessive leverage by institutions and individuals does not get solved easily. In the past 100+ years you have had 4 bears and 4 bull secular trends with the bear averaging over 12 years. We are, to say the least, not in average times so expect more to come. That means doing what the institutions and HNW have been doing for decades. Moving beyond reliance on just traditional assets.

What’s over 50 years old and considered modern? MPT..time to dust it off give it a face lift and focus on low to non correlating assets.

Thanks for challenging the status quo and afflicting the comforted. The business is getting more challenging and fresh ideas are needed now more than ever to succcessfully meet the demands of our clients.

]]> By: Matthew http://venturepopulist.com/2009/04/chaos-opportunity-oh-please/comment-page-1/#comment-5 Matthew Tue, 05 May 2009 18:04:28 +0000 http://venturepopulist.com/?p=430#comment-5 MPT works. With the right allocation and systematic rebalancing to maintain percentages as well as in line with clients goals, there is no lost decade. Markowitz knew what he was doing, and as an academic, he did not stand to profit as you do from pumping your business. When MPT is juxtapositioned with Daniel Kahneman's Nobel Prize winning ideas on heuristics, you see how MPT does add value when used in line with clients goals. "Set it and forget it" is a horrible strategy, but that is not MPT. Any classic definition of "Venture" includes the idea of risk taking. Where does that fit in CAPM or the efficient frontier? MPT works. With the right allocation and systematic rebalancing to maintain percentages as well as in line with clients goals, there is no lost decade. Markowitz knew what he was doing, and as an academic, he did not stand to profit as you do from pumping your business. When MPT is juxtapositioned with Daniel Kahneman’s Nobel Prize winning ideas on heuristics, you see how MPT does add value when used in line with clients goals. “Set it and forget it” is a horrible strategy, but that is not MPT. Any classic definition of “Venture” includes the idea of risk taking. Where does that fit in CAPM or the efficient frontier?

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