Stephen A. Zamborelli

GROUNDED IN THE EFFICIENCY OF CAPITAL MARKETS

Redefining Investment Advice

Focus on what you can control:

  • Use academic research as the basis of investment decisions
  • Risk and return theories and practices
  • Maintain discipline of the investment process
  • Consider investment costs and taxes
  • Portfolio performance measurement and attribution
  • Holistic view of the portfolio, rather than analyzing components in isolation
  • Identify behavioral finance biases

    • What nobody can control:

  • Market Returns
  • Economic environment
  • Accurately and consistently forecast tomorrow's news that drive the markets
  • Repeatedly identify in advance winning stocks or fund managers
  • The media

    • "People are overly impressed by the performance of money managers...It's difficult to realize that you would get very similar patterns if there was no skill at all."

    Source: D. Kahneman (Nobel Laureate 2002), M. Riepe, "Aspects of Investor Psychology" Journal of Portfolio Management Summer 1998