Disruptive Investing

The American Recovery and Reinvestment Act 2009 has been passed as of Friday, February 13, 2009 ( ARRA 2009 ). It contains numerous investments (i.e.,government spending) in infrastructure, science, healthcare, education, energy, and protecting the "vulnerable". How will this affect consumerism? Sustainability? Green initiatives? Where will people demand their money be invested? Which industries will be supported by the act and which will slide? How will this impact the way money managers make decisions, rebalance portfolios, establish new strategies? What are the best mutual funds to invest in for 2009? Will it be large cap or small cap, international or domestic, growth or value, aggressive or conservative, or emerging markets?

Making money today is not easy, and managing money successfully is even harder. With the global financial and economic crisis in full swing chief investment officers of mutal fund families, mutual fund managers, and their analysts must navigate an incredibly stormy sea. It is global and it is pervasive and is affecting every asset class. New regulations, reporting requirements, ethics, moral hazard and other non-core activities weigh on the ultimate time and focus available for optimizing mutual fund portfolios. Everyone is concerned with risk, volatility, diversification and the performance of their money relative to other potential investment choices. Mutual fund managers must retain existing clients, attract new clients, and avoid the "run-on" issues of mass redemptions that severely cripple the NAV of their fund(s). How to rebalance? What equities to buy? Which ones to sell? When? Which add to returns while also reducing risk? These questions and other problems can be ame...

EARN MORE! RISK LESS! Diversification weighting, is a product of diversification optimization (of a portfolio). Allocation weights can be determined by the extent to which an asset adds uniqueness to a portfolio. Some studies show that using diversification weighting, rather than risk-based weighting, or capitalization weighting, could improve relative performance while decreasing portfolio volatility.

Welcome to Mutal Fund Optimizer! We've created this informative blog to help improve investment intelligence and management of money, to help you better design portfolios to reduce risk, increase overall diversification, improve returns and save time and money. Check back often for news, tips and success stories. Thank you! From your Mutual Fund Optimizer team!