The Investing Strategies of Top RIAs

The last couple of months of 2023 have been characterized by continued inflation, a declining stock market and the expectation of “higher for longer” interest rates. That’s not to mention the near government shutdown that was averted at the last minute—but perhaps only temporarily with only a 45-day extension in place. It’s all enough to give any retail investor whiplash.

So, how are the top registered investment advisory firms in the country navigating the current market? WealthManagement.com spoke to chief investment officers from nine of the largest RIAs to reveal how they are tweaking client portfolios in response to the markets, and detail their best investment ideas right now.

See the Slideshow: How the Largest RIAs Are Investing Now

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By some measures, the most basic premise behind value investing, paying less for stocks, has not worked for investors for the last 30 years. Despite the intuitive appeal of buying less expensive stocks, value benchmarks have trailed the broad market significantly, and the success of active strategies following a value approach has faded. How is it that paying less stopped providing more upside and is not providing the downside protection it once did? Has the world really moved to a point where paying more and more results in better returns?

There is an answer to this puzzle that is logical, intuitive and not rooted in conjecture, but it requires investors to put to the side the conventional measures of valuation we were taught to use. Join Will Gibson, CFA and David Clark from Nasdaq Dorsey Wright to learn how to use simple ranking methods to identify buy and sell points, how to use guided models to streamline your business and more.

Register now to join us this Wednesday, October 18 at 2:00 pm ET!

Listen to the latest episode of the WealthManagement EDGE Podcast as host Nabia Jenkins-Johnston and Aisha Hunt , founder of law firm Kelley Hunt & Charles, talk about legal changes in the way we do business, gaining a perspective on diversity and inclusion, and emphasizing the need to create an inclusive, mutually beneficial financial landscape.

Aisha brings over two decades of experience in her role as principal of KHC, a majority women- and minority-owned law firm that specializes in helping asset managers bring legal and business aspects together. Here, she discusses the firm’s involvement with the US Benchmark Series on the groundbreaking efforts to gain SEC exemptive relief, and why casting a bold innovative vision is the key to forward thinking.

Listen to the episode!

We spoke with Beacon Pointe CIO Michael Dow, CPA, CFA, CAIA and Director of Risk Management and Securities Research Julien Frazzo about how they’re investing in the current climate. Here’s what they said:

WM: What recent investment allocation changes has your firm made??

We added a long duration trade that will benefit clients should we see a significant economic slowdown. Bonds are attractive given the Fed’s aggressive rate hikes and currently elevated real yields.

WM: What’s your top contrarian pick at the moment??

We increased our overweight to U.S. large cap value and we added to our underweight to U.S. large cap growth given relative valuations and our expectations for much slower economic growth.?

Continue Reading: Top RIAs on The Current Investing Climate