Neosho Capital Cautions Investors on Smart Beta Strategies
LA JOLLA, Calif., July 28, 2014 /PRNewswire/ -- Neosho Capital LLC of La Jolla, California joined the ongoing debate in financial circles over "Smart Beta" in an article published in Seeking Alpha. Claiming the term could be "materially misleading" for the average investor, founding partner of Neosho Capital, Chris Richey, suggested that unaware consumers could be in for a nasty surprise.
Smart Beta proponents argue that such strategies allow investors to take advantage of "anomalies" in markets wherein certain companies outperform over certain periods and in certain conditions. Richey offered that the only two aspects of Smart Beta which are truly new are the term itself and the use of a low-cost ETF vehicle to deliver it.
Although the Neosho investment team is a fan of being selective about stocks and fees, as an active manager Neosho does not believe Smart Beta will consistently live up to the promise in its name. Neosho is not alone in their skepticism over Smart Beta. None other than the Father of Beta and the Capital Asset Pricing Model, and holder of a Nobel Prize for his creation, Bill Sharpe declared, "Smart Beta makes me sick."
Richey's full article, "Being Intelligent About Smart Beta," can be found on the Seeking Alpha web-site or in Neosho's Summer Commentary.
Founded in 2004, Neosho Capital is an independent, SEC registered investment advisory firm based in La Jolla, California, and manages assets for institutions and high net worth individuals. The firm applies Graham & Dodd value investing principles globally to invest in its International Equity and Global Equity strategies.
SOURCE Neosho Capital LLC
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article