White Papers – Greycourt

Jesse v. John Maynard: Why Smart Investors Disagree So Profoundly About What Markets Are Telling Us

Avery Foster February 24, 2026 No Comments

Download white paper here EXECUTIVE SUMMARY In this paper we ask ourselves how it can be that the world’s smartest investors can look at the same market data and come…

Benchmarking: Compared to What? Part 2

Avery Foster December 13, 2024 No Comments

A thoughtful approach to measuring relative portfolio performance – Part 2

Compared to What? – Benchmarking 101

Avery Foster August 21, 2024 No Comments

A thoughtful approach to measuring relative portfolio performance – Part 1

Chinese Private Markets Likely to Suffer from Slowing Entrepreneurship

Avery Foster October 11, 2023 No Comments

The extraordinary rise and more recent constraints on entrepreneurialism in China and considers its implications for Chinese private markets

Apples & Oranges: Are developed foreign equity markets as inexpensive as they appear?

Avery Foster August 28, 2023 No Comments

“Apples & Oranges” explores valuation differences between US stocks (S&P 500) and developed non-US stocks (EAFE) to see if the latter is as cheap as it first appears.

Is the Glass Half Full?

Avery Foster June 13, 2023 No Comments

Markets trade in cycles and, as most of you know, it is presently our view is that we are entering a challenging environment for risk assets. With that said, we…

What Does Cost of Capital Mean?

Avery Foster March 13, 2023 No Comments

The concept of “cost of capital” is not just something financial analysts pay attention to. We also think it is useful and relevant for families to consider as they design…

Greycourt White Paper No. 67: The Current Case for Equity Long/Short Hedge Funds

Avery Foster September 27, 2021 No Comments

Our clients—like many investors—perceive that equity long/short hedge funds have, on average, not done a very good job of either hedging market risk or beating broad passive equity indices following…

The Current Case for Equity Long/Short Hedge Funds

Avery Foster September 27, 2021 No Comments

How to measure value creation in a portfolio context and identify some cases where it can still make sense to use equity long/short hedge funds.

Greycourt White Paper No. 65: Investment Implications of a Biden Win

Avery Foster April 30, 2021 No Comments

President Biden’s proposed tax changes for corporations and wealthy individuals when he was a candidate are nearly identical to those recently proposed by his administration. This white paper (written when…

Greycourt White Paper No. 66: China and the Investor’s Dilemma

Avery Foster December 8, 2020 No Comments

Many investors are flummoxed when it comes to investing in China. On the one hand, it is one of the largest investment markets in the world. On the other hand,…

White Paper No. 63: What Will You Do in the Next Crisis?

Avery Foster May 6, 2020 No Comments

The last couple of months have been extremely eventful for all of us. First and foremost, we hope that you and your families continue to be well and that you…

White Paper No. 64: Socially Responsible Investing for Families

Avery Foster January 7, 2020 No Comments

Socially responsible investing is a fast-evolving area of interest for wealthy families. It can come in many forms and there is a fair degree of complexity involved for families trying…

White Paper No. 62: Quantifying the Value of Tax-Aware Decision Making

Dana Schmitt July 31, 2017 No Comments

What are some common strategies used to optimize after-tax returns and exactly how valuable are they to a client’s portfolio? Is tax-loss harvesting more valuable than after-tax portfolio design? How…

White Paper No. 61: Should You be Worried about Liquidity in the Markets?

Avery Foster October 26, 2015 No Comments

How concerned should you be about market liquidity? What sectors of the markets would be most affected in a liquidity crisis and how might such a crisis begin? Is contagion…

White Paper No. 60: How Wealth Advisors Add Value

Avery Foster October 6, 2014 No Comments

Since the Financial Crisis, investor confidence in their advisors has plummeted. Clients are wondering exactly what it is that advisors are doing for them and how to measure how well…

59: The Last, Best Tax Shelter Ever?

Dana Schmitt January 22, 2014 No Comments

As tax rates on high income taxpayers have risen – and are expected to continue to rise – families have begun to dust off a long-neglected tax shelter: investing via…

40: Private Equity Investing (Revised 2014)

Dana Schmitt January 8, 2014 No Comments

Once an investor decides to allocate capital to private equity, the first question is: “How should I go about it?” Properly structured, private equity can be the most rewarding sector…

58: Impact Investing

Dana Schmitt December 3, 2013 No Comments

Currently a $36 billion industry and growing, impact investing is increasingly significant in the investment marketplace. However, confusion still exists in our industry about what impact investing really is and…

White Paper No. 57: Actively Passive

Dana Schmitt October 8, 2013 No Comments

Despite the fact that over the past decade most long-only active equity managers have failed to produce attractive returns (after taxes, fees and inflation), investors continue to hire and hold…

45: Secondary Investing in Private Equity (Revised 2013)

Dana Schmitt March 22, 2013 No Comments

Secondary investments in private equity can be an attractive addition to primary private equity investments. They offer broad diversification across vintage years, industries, geographies, managers and investment strategies. Generally, capital…

56: Being Rich

Dana Schmitt February 15, 2013 No Comments

Many members of wealthy families have a complicated relationship with their wealth, and this is often especially the case with young adults. This paper examines the issues faced by wealthy…

White Paper No. 55: Yale versus Norway – Implications for Family Investors

Avery Foster September 15, 2012 No Comments

Most investors are well aware of the exceptional track record compiled by Yale University under the leadership of CIO David Swensen. But we suspect that far fewer investors are familiar…

Investment Research Brief: Accelerating Tax Gains in 2012

Dana Schmitt September 12, 2012 No Comments

There is some uncertainty surrounding the future of long-term and short-term capital gains tax rates, especially given the fact that the Presidential election is fast approaching and the expiration of…

55: Yale Versus Norway

Dana Schmitt September 6, 2012 No Comments

Most investors are well aware of the exceptional track record compiled by Yale University under the leadership of CIO David Swensen. But we suspect that far fewer investors are familiar…

54: Investing When Fundamentals Don’t Matter

Dana Schmitt August 6, 2012 No Comments

Investing on the basis of fundamentals has long been a cornerstone for prudent investors. However, the rash of extreme geopolitical events over the past several years has tried investors’ patience,…

52: The End of History (Again)

Dana Schmitt April 5, 2012 No Comments

The financial crisis that began almost five years ago is still with us and we are still dominated by the events unfolding in Europe. What are some of the root…

51: Prudence Versus Returns

Dana Schmitt January 10, 2012 No Comments

Investors strive to act prudently and to generate good risk-adjusted returns. But what happens when these two objectives are in conflict? In this white paper Greycourt discusses the conditions under…

50: No Gold Digging for Me

Dana Schmitt January 9, 2012 No Comments

This paper examines gold’s history, discusses the myths and facts about gold and considers the reasons (both irrational and rational) why investors buy gold in the first place. Download the…

49: The Outsourced CIO Model

Dana Schmitt January 8, 2012 No Comments

Over the past decade, and accelerating rapidly in the last few years, the so-called “outsourced Chief Investment Officer” model for delivering financial advice has grown very rapidly. In the experience…

48: Best Practices Trusts

Dana Schmitt January 7, 2012 No Comments

In White Paper No. 48, we recommend that families who use trusts (or who are considering establishing trusts) evaluate the advantages of “unbundling” the activities that have historically been bundled…

47A: Investing in Real Property – A Primer

Dana Schmitt January 6, 2012 No Comments

We recognize that many investors may not be familiar with real estate as a core part of an investment portfolio, and so we are also enclosing White Paper No. 47A…

47: The Real State of Real Estate

Dana Schmitt January 5, 2012 No Comments

White Paper No. 47 describes the current real estate environment and provides investors with a road map to identify and evaluate potential opportunities in the sector. As everyone knows, market…

43: Credit Crunch Q & A

Dana Schmitt January 1, 2012 No Comments

Presented as a series of questions and answers, we explore what a credit crunch is, why it happened, how it morphed into the mess we find ourselves in today, and…

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…

3: Philanthropy in Estate Planning: Balancing Charity against Personal Spending Needs

Dana Schmitt November 30, 2011 No Comments

Many wealthy clients have philanthropic goals, but few receive sufficient guidance regarding how best to balance these goals against personal spending needs. Deciding how to distribute wealth can be a…

2: Money Managers: Greycourt’s Criteria and Procedures for Selecting Best In Class Managers

Dana Schmitt November 29, 2011 No Comments

Clients and money managers often ask us how we select the managers we recommend and how we work with money managers. This white paper describes Greycourt, its characteristic client base,…

20: Modern Portfolio Theory and Quantum Mechanics

Dana Schmitt November 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…

White Paper No. 33: Much Ado About Bonds

Avery Foster April 11, 2004 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…

White Paper No. 29: Numeracy, Innumeracy and Hard Slogging

Avery Foster April 17, 2003 No Comments

Nearly twenty years ago the eminent ecologist, Garrett Hardin, bemoaned our lack of “numeracy.” Download the white paper here »

White Paper No. 24: A Modest Proposal

Avery Foster February 12, 2003 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…

Category: White Papers