• Ralph Lauren Top Finance Podcasts

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Oil prices hovering near $82/bbl may pressure transportation and airline equities in the short term. Energy strategists on "top finance podcasts" predict an eventual easing as inventories build, which could reverse cost pressures by late Q Jeff Ptak: There's a lot of different lenses that we look at funds through and trying to get a sense of what it is that might have been affecting investors and keeping them from capturing as much of their funds total returns as they possibly could. One of those dimensions is cash flow volatility. Basically, what you're looking at is the standard deviation of inflows and outflows to a group of funds. We grouped them from the funds that had the most volatile cash flows to those that had the least volatile cash flows. Cash flows, in this context, was proxying for trading activity. The most volatile cash flows we would associate with the most trading activity and the opposite for those that had the least volatile cash flows. What we found is, there was a meaningful difference, even controlling for a number of factors between funds that had the most volatile cash flows and those that had the least volatile cash flows, those that had the most volatile cash flow, there was a much larger gap between those funds, dollar-weighted returns and their total returns, whereas we found with funds that had more stable cash flows, investors were more successful in capturing their funds, total returns. From that inference, we can infer something else, which is the more investors do, in this case, in a transactional sense. The more buying and selling they do, the less they tended to earn of their funds total returns. If there's a takeaway there, do less, stay still, try to hold the line on transacting. Transacting is an inevitability for a lot of us. Just things happen. But what can be particularly hazardous is discretionary ad hoc trading. That's where people can really get themselves into trouble with buying high and selling low in the stereotypical sense. We have seen a remarkable return on investment and comparatively low client acquisition costs even as we’ve multiplied our spend over the years.

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