This Canadian fund manager doesn’t believe in Buffett and is buying ‘everything’ crypto

Mark Schmehl flouts Warren Buffett, thinks valuation is overrated and says most other rules of investing are “total baloney.”

The portfolio manager, who just completed Fidelity Investments’ most successful Canadian fund launch ever, eschews investing obsessions such as earnings, cash flow and price-earnings ratios and invests at the extremes of the market instead, including Canadian cryptocurrency stocks.

“I focus on the stuff in the tails: really cheap, broken, horrible stories that nobody wants to buy again, and stocks that everybody is excited about but their valuation is so high they can’t bring themselves to buy them,” Mr. Schmehl, 46, said in an interview at Fidelity’s Toronto offices. read more

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Active funds’ great comeback of 2017 almost just blew up on them

For most of the year, trouncing the crowd in equities meant sitting on your technology stocks and waiting for the clock to run out. Over two weeks starting in late November, money managers on Wall Street got a reminder of how tough that wait can be.

While you can’t tell from the Dow Jones Industrial Average, mutual funds just endured their roughest stretch of 2017, with nerves tested by an industry rotation that punished beloved picks while lifting everything they hate. Managers watched leads over benchmarks evaporate then miraculously recover, as the market’s placid surface finally broke. read more

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Hedge funds have found it tough to make money this year trading bonds and currencies, but as 2017 brings to a close they seem to be relying upon a twin approach to put a shine on the amounts: U.S. yield curve flattening and dollar weakness.

If recent moves in Treasuries and the dollar are any guide, it is a winner. The U.S. yield curve is the flattest in more than a decade and the speed of flattening recently has been striking, while the dollar has dropped three consecutive weeks, its longest losing streak since July. read more

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Hedge funds double down on U.S. curve flattening, bearish greenback Stakes

Hedge funds have found it tough to make money this year trading bonds and currencies, but as 2017 brings to a close they seem to be relying upon a twin approach to put a shine on the amounts: U.S. yield curve flattening and dollar weakness.

If recent moves in Treasuries and the dollar are any guide, it is a winner. The U.S. yield curve is the flattest in more than a decade and the speed of flattening recently has been striking, while the dollar has dropped three consecutive weeks, its longest losing streak since July. read more

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Could this finance manager be Canada’s best dividend investor?

Building a diversified Canadian portfolio necessarily means looking much different than the S&P/TSX composite index.

“So much of the index is dominated by the banks, the energy and materials companies,” said Conrad Dabiet, a portfolio manager at Manulife Asset Management.

“But we can find opportunities in companies that aren’t as followed, or aren’t large weights in the index. And we’ve been able to do this without giving up much of what you’d expect from a dividend fund.” read more

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How an award-winning dividend fund manager Conquer all of His peers

Building a diversified Canadian portfolio necessarily means looking much different than the Samp;P/TSX composite index.

“So much of this index is dominated by the banks, the energy and materials companies,” stated Conrad Dabiet, a portfolio manager at Manulife Asset Management.

“But we could find opportunities in businesses that are not as followed, or are not large weights in the index. And we have managed to do this without giving up much of what you would expect from a dividend fun” read more

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One-year Because Trump’s win, U.S. funds enjoy strong growth

Assets managed by U.S.-based funds have risen substantially, led by equity capital, since Donald Trump won the U.S. presidential elections per year ago.

Though financial markets have been widely skeptical about the capacity of the Trump presidency to pass substantial political reforms because he won the U.S. elections, capital have appreciated inflows and have seen the value of the holdings grow as international financial markets enjoyed double returns.

Since the Trump presidency approached a yearlong anniversary on Wednesday, total net assets under management of U.S. mutual funds such as exchange-traded funds climbed by a sixth to $21.1-trillion within the one-year period ending Sept. 30, according to data from Thomson Reuters. read more

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Why this product is generating so much buzz in the mutual fund industry

Canadian mutual-fund companies could soon be offering retail investors a category of complex investment strategies now reserved just for associations and high-net-worth individuals.

Regulatory approval for these so-called “liquid options” funds, which are intended to optimize yields while providing downside protection in falling markets, could come as soon as next year.

The stakes are high for a business being pummelled by an avalanche of investment dollars leaving managed funds in favour of cheap, passive indicator products. At present, alternative approaches in Canada are only available to institutional investors or high net worth customers with incomes of over $200,000 per year or a net worth of $1-million. If approved for retail investors, liquid options could have market potential of over $100-billion of assets under management (AUM) within a five-year interval, according to a recent CIBC analysis report. read more

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Fed up with stocks, Canadian hedge fund turns to PE, Profits 88 Percent

The director of Canada’s top-performing hedge fund claims ETFs have made it tough to make money in stocks that are small-scale, so he is shifting his focus on private equity instead.

Toronto-based Goodwood Inc., with roughly $100-million under control, was a double winner in Canada’s most important hedge fund awards this month. Its SPValue Fund won Choice IQ’s award for the best one-year return in the equity class, with an 88-per-cent profit, and its Milford Fund won for best last-minute yield in the credit group, with an yearly 9.8-per-cent gain. read more

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Debating among the most hotly Contested topics in finance

Few topics in fund are as hotly disputed since the feud between advocates of passive and active investing. Bloomberg Gadfly’s Nir Kaissar and Bloomberg View’s Barry Ritholtz recently met online to join the discussion. They discussed global equity valuations.

Barry Ritholtz: I have a foot in both camps, though my store runs a largely passive portfolio of cheap worldwide assets. So perhaps I’m not the perfect Boglehead to make the case for passive investing.

But, I think a big chunk of your portfolio — many — must be indexed. Let’s start our situation by pointing out four of the key reasons: read more

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