Dan Irvine | Principal
3Summit Investment Management, LLC
We share our research and investment philosophy quarterly with clients and the investing public through Investing Insights. I write about topics related to investment strategy, portfolio design, risk management and general investing topics. If you prefer a different format you may also access this content through our podcast called Investing Insights for the Modern Investor.
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Latest Investing Insight
SPACs are exhibit A in information asymmetry between Wall Street and retail investors. To level the information playing field we are going to explain what SPACs are, how they work and why any investor considering buying SPAC shares should proceed with extreme caution.
Investing Insights Archive
Trend Following is a powerful investment strategy that is not only capable of outperforming over the long-term but is also a risk management tool. Learn why Trend Following is a strategy that should be included in any well structured investment portfolio.
In this Investing Insight I cover Exchange Traded Funds (ETF’s) and how they are different from Mutual Funds.
Properly diversified portfolios are at their best during periods of high volatility and market uncertainty. Despite the numerous positive aspects of taking a diversified approach to investing, it can be a major source of investor frustration. Expectations are everything, it is important to have realistic expectations for diversified portfolios by understanding how they are designed to behave during varied market conditions.
Quantitative investing is such a powerful investing tool because the process enforces a rigid and repeatable framework for investment decision-making, additionally, quantitative investment strategies can be used to find and generate unique sources of returns. Quantitative investing can exploit the universal behavioral vulnerabilities of market participants that manifest themselves in financial markets into a unique source of returns.
Diversification is the most powerful portfolio management tool an investor has to successfully and efficiently grow wealth over the long-term. However, just like the real cost of a free lunch, not all forms of diversification create equivalent value. Imagine a free lunch at a McDonalds versus a five-star restaurant. Designing a portfolio using the most advanced techniques of diversification makes it possible to reduce the risk of an otherwise similar portfolio in more than half, while maintaining the same expected returns.