I manage OPM for a living. I'm positive for the year, but 4.7% isn't my idea of doing a good job. Especially since I'm a performance-only RIA. Also, some comments in this thread are over the top. Btw, I'm an Italian, so I guess I'm a WOP. Lol! At least I can laugh at myself, and I never get upset when I hear someone call me dego, wop, etc.,
Sorry, I was brought up to have a zero tolerance for racist, religious, ethinic piles of shit who think because of their_____ (fill in the blank) they are superior.
A bus stops and two Italian men get on. They seat themselves, and engage in animated conversation. The lady sitting behind them ignores their conversation at first, but her attention is galvanized when she hears one of the men say the following: ''Emma come first. I come. Dennis come and Dennis come again. I come again. Two asses, they come together again. I come again and pee twice. Then I come once-a-more.'' ''You foul-mouthed swine,'' retorted the lady indignantly. ''In this country we don't talk about our sex lives in public.'' ''Hey, coola down lady,'' said the man. ''Imma just tella my friend howa to spella Mississippi.''
Two great white sharks were swimming in the ocean and spied survivors of a sinking ship. "Follow me son" the father shark said to the son shark and they swam to the mass of people. The wise old Father told his Son, "First we swim around them a few times with just the tip of our fins showing." And they did. "Well done, son! Now we swim around them a few times with all of our fins showing." And they did. "Now we eat everybody." And they did. When they were both gorged, the son asked, "Dad, why didn't we just eat them all at first? Why did we swim around and around them?" His wise father replied, âBecause they taste better without the sh*t inside!â
What seems to be the problem people? Aaron's job isn't to produce absolute return. His job is to outperform EAFE. As far as I can see, he is doing his job, and a lot of people have no idea how freaking hard that is. Do you guys even know what Investment Mandate means? If he deviates more than a small % from EAFE (upside OR downside), his clients would fire him, you know that, right?
And that's why people don't trust the industry. He is hired to do exactly what a 2 year old could do by just buying the index (mutual fund or ETF). Real traders (myself not included) focus on absolute returns, that's all that matters. Percentages are for academics and aspiring traders. Just my 2 cents.
No. EAFE, like all index, is unmanaged. It takes skill to consistently outperform it. If you just keep buying when a stock is added to the index, and sell it when it is deleted from the index, you will consistently underperform the index. It takes a lot more than that. Again, incorrect. If a trader has given Aaron his money, the trader is a fool. His clients are neither academics, nor traders (aspiring or otherwise). I say this from direct experience working for a very large wealth manager: His ideal client has so much money that his goal is to preserve it, and safely grow it with (hopefully) well thought out portfolio allocation between different asset classes. EAFE would be one of the asset classes. Once I have made my megamillions, I would hire guys like Aaron to manage a small part of that. But I gotta make my nut first I am not Aaron's client, nor are you, nor are any trader. His (ideal) clients are very wealthy individuals, estates, corporates etc. etc.