December 2011 – Greycourt

42: Global Investing: An Idea Whose Time Has Come?

Dana Schmitt December 30, 2011 No Comments

In this paper we investigate the case for global investing, examine why it is that so many American investors underweight foreign stocks, and suggest a sensible middle ground between true…

41: Our “Friend of the Investor” Brief

Dana Schmitt December 30, 2011 No Comments

Departing from our usual format, we have fashioned this white paper as a faux amicus curiae brief as if it were being filed with the Supreme Court of the United…

39: Auditing Alternative Investments

Dana Schmitt December 28, 2011 No Comments

The purpose of this paper is to review the background behind the AICPA Practice Aid, to examine some of the mischief that implementation of the Aid has caused, and to…

38: Open Architecture as a Disruptive Business Model

Dana Schmitt December 27, 2011 No Comments

This paper examines the impact that open architecture has had on the financial services industry. Download the white paper here »

37: Investing in Oil & Gas

Dana Schmitt December 26, 2011 No Comments

Energy is a topic that is on the minds of many investors these days. The enclosed white paper, “Investing in Oil & Gas,” is a primer on the techniques, opportunities…

36: Hedge Funds get “Swensened”

Dana Schmitt December 25, 2011 No Comments

Many investors are steering clear of hedge funds because of recent, widely-reported scandals, lower-than expected returns, and the drubbing hedge funds have taken from, among others, Yale’s David Swenson. In…

35: Investment Performance Reporting: Just the Facts Ma’am

Dana Schmitt December 24, 2011 No Comments

Because a portfolio’s performance is often imperfectly understood, the challenge of proper monitoring can be difficult. In this white paper, we set forth the key facts about the process of…

34: Portable Alpha Strategies

Dana Schmitt December 23, 2011 No Comments

This paper explains what portable alpha strategies are and why they are important, but also identifies a series of important challenges associated with employing portable alpha strategies in real-world portfolios.…

33: Much Ado About Bonds

Dana Schmitt December 22, 2011 No Comments

Many investors have expressed alarm over the impact that rising rates may have on their existing bond portfolios. In the enclosed white paper, Greycourt examines the impact of rate rises…

32: The Challenge of Identifying Managers Who Will Outperform in the Future

Dana Schmitt December 22, 2011 No Comments

The paper examines a couple of the principal issues associated with money managers. Specifically: We analyze why it is so difficult to identify best-in-class managers in time to profit by…

31: Reinvigorating the Investment Committee: Introducing the Investment Committee Operating Manual

Dana Schmitt December 21, 2011 No Comments

As a tool for the successful management of capital, the investment committee has been a serious disappointment. This paper discusses the reasons why investment committees tend to subtract, rather than…

30: The Tax on Dividends: Speculations On How Taxation Changes Might Affect Investor Strategies

Dana Schmitt December 20, 2011 No Comments

Speculation has heightened that the Bush administration will seek to reduce or eliminate the double taxation of dividends paid on corporate stocks. While the form and substance of such a…

29: Numeracy, Innumeracy and Hard Slogging

Dana Schmitt December 19, 2011 No Comments

Working from a recent speech by John C. Bogle, founder and past CEO of The Vanguard Group, this paper demonstrates just how difficult it is for wealthy, taxable investors to…

28: Good News for Pennsylvania Trust Beneficiaries: The Principal and Income Act of 2002

Dana Schmitt December 18, 2011 No Comments

The Uniform Principal and Income Act was first promulgated back in 1997, but it wasn’t until July 15, 2002 that the Pennsylvania legislature got around to enacting it. The purpose…

27: Typical Steps in the Advisory Process for Families

Dana Schmitt December 18, 2011 No Comments

Download the white paper here »

26: Typical Steps in the Advisory Process for Endowments

Dana Schmitt December 17, 2011 No Comments

Download the white paper here »

25: Hedge Fund Investing: The End of the Beginning

Dana Schmitt December 17, 2011 No Comments

This white paper provides an overview of the hedge fund industry as it exists today, and identifies the myriad risks facing hedge fund investors, including the lack of transparency and…

24: A Modest Proposal: Let’s End Conflicts of Interest in the Wealth Advisory Business

Dana Schmitt December 16, 2011 No Comments

The problem of financial conflicts of interest is a perfect example of our ability to understand a concept intellectually but fail to grasp its full significance. This white paper explores…

22: Corporate Crooks and Investor Trust

Dana Schmitt December 15, 2011 No Comments

It’s gotten to the point where we’re afraid to turn on the news or pick up a newspaper. Like most investors, Greycourt has been deeply disturbed by the chicanery and…

20: Modern Portfolio Theory and Quantum Mechanics

Dana Schmitt December 14, 2011 No Comments

The year 2002 marks the 50th anniversary of the publication of Harry Markowitz’ seminal paper on mean variance optimization, a then-obscure event which nonetheless inaugurated what we now know as…

19: Concentrated Security Positions: Four Commonsense Principles

Dana Schmitt December 13, 2011 No Comments

Many wealthy families hold all or most of their wealth in one highly appreciated security. Sometimes that stock represents a control position in a family company, but more often the…

17: Taming Your Trust

Dana Schmitt December 12, 2011 No Comments

When families consider the prospect of having to establish appropriate provisions in trust instruments for spouses, children or future generations, they naturally approach the matter with trepidation. There is, first…

16: Family Investment Partnerships

Dana Schmitt December 11, 2011 No Comments

Many wealthy families are familiar with family limited partnerships used to discount the value of intra-family gifts. But limited partnerships can also be used as investment vehicles, and this strategy…

15: Total Return Trusts

Dana Schmitt December 10, 2011 No Comments

From the time the concept of the trust was first developed in the late Middle Ages until about the 1950s, trust assets tended to produce far more income than capital…

13: Recent Events: The Long-Term Investment Implications

Dana Schmitt December 9, 2011 No Comments

Although the terrible events of September 11 are still fresh in our minds, it is not too soon to consider what the implications of those events – and, indeed, the…

12: Conflicts of Interest: Do They Matter?

Dana Schmitt December 8, 2011 No Comments

Private investors today have more choices than ever before. The explosive growth in private wealth in the last decade has caught the attention of every major bank, brokerage firm and…

11: Affinity Groups: Resources for Wealthy Families

Dana Schmitt December 7, 2011 No Comments

Clients often ask us if we can recommend resources for wealthy families concerned about establishing family offices, investment strategies, philanthropy and similar issues. While there are innumerable organizations offering assistance…

10: Establishing a Family Office: A Few Basics

Dana Schmitt December 6, 2011 No Comments

Many families who have experienced a significant liquidity event will consider setting up a family office. The purpose of this white paper is to discuss the reasons families consider establishing…

9: Managing Investment-Related Taxes: Increasing Net Wealth through Astute Management of the Tax Consequences of Investment Activity

Dana Schmitt December 5, 2011 No Comments

An important part of Greycourt’s value proposition to its family clients is our ability to add substantially to their net after-tax wealth through careful management of investment-related taxes throughout the…

7: Combining Estate Planning with Asset Allocation

Dana Schmitt December 4, 2011 No Comments

Although estate planning has long played a critical role in preserving wealth for future generations, this area has been dominated by attorneys and trust administrators. Investment professionals, however, can benefit…

6: Investment Considerations Associated with Complex Estate Planning Strategies

Dana Schmitt December 3, 2011 No Comments

The paper discusses complex estate planning vehicles that are frequently encountered in the course of Greycourt’s advisory work with wealthy families. The purpose of the paper is to highlight the…

5: Working with Investment Consultants: Price Versus Value

Dana Schmitt December 2, 2011 No Comments

Certain cost-conscious investors – especially smaller investors and charitable endowment funds – sometimes express concern about the level of fees charged by Greycourt and a few other premier firms. The…

4: Soft Dollars: Greycourt’s Position

Dana Schmitt December 1, 2011 No Comments

Clients, money managers, investment bankers and brokers often ask why Greycourt adamantly refuses to accept soft dollar payments for its consulting services. This white paper explores the issue of soft…

Month: December 2011