Trouble with the Numbers

Few people bothered to see Trouble with the Curve, a recent baseball movie starring Clint Eastwood and Amy Adams, and most critics didn’t like it. I did see the movie, and without giving away the plot, it is fair to say that the film is a cry against quantitative analysis in sports. Eastwood plays an…

Ten Years of Active Investment Management

October 31rst marked the ten-year anniversary of Pinnacle’s Global Investment Performance Standards (GIPS) compliant track record. That’s a big deal in the institutional investment community — it means that we’ve met the GIPS standard for reporting performance (often required by institutional investors). It also means that we have a legitimate ten-year track record, which is…

Searching for a Performance Tail-Wind

For the past three years our insistence on maintaining a globally diversified portfolio has not been especially helpful in outperforming our blended benchmark on a consistent basis. If we use the EAFE Index (the MSCI Europe Australasia Far East Index) as a proxy for international markets, the returns versus the S&P 500 Index (the stock…

Water Cooler Conversations

The investment team members at Pinnacle are connoisseurs of investment research.  We read a vast variety of analysts and money managers, each having their own opinion about the economic cycle or their particular area of expertise.  We have spent a decade finding those analysts who are clear in presenting their point of view, are well-known…

Blocking and Tackling

We’re three weeks into the football season so it’s time to break out the tired sports metaphors. Today’s column is titled, “Blocking and Tackling,” which I’m using as a new and interesting way to announce that this is a good time to review the fundamentals of Pinnacle’s investment philosophy. With luck, we’ll soon have an…

How to Evaluate Return Targets

Every Pinnacle client signs an Investment Policy Statement that spells out the long-term targets for risk and reward for each Pinnacle strategy. Risk is presented in absolute terms as a fixed range of returns based on back-testing a five asset-class portfolio from 1972 to the present. The range of expected annual returns (risk or volatility)…