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News and Commentary
 
News
November 15, 2010: Director of Client Service, Amanda Scipione, profiled by Boston College. Click Here for the article.

May 18, 2009: Todd Silverman Joins Siharum Advisors, LLC.  Click Here for the full press release.

October 29, 2008: New Investment Advisory Firm Launched In Boston, MA.  Click Here for the full press release.
Research Commentary Topics
For full copies of Research Commentaries, please call or email using contact information below  


   2011 
August 2011: A Bull Market for Fear
Typically we do not provide ‘commentary’ on recent market activity but rather focus on what lies ahead.  However, given the recent material declines in most risk assets and the peculiar behavior in some areas of the capital markets, we thought it worthy to give our brief insight.


June 2011: Client Service Commentary

As part of the Economic Stabilization and Recovery Act of 2008, the Federal Government fundamentally changed the cost basis reporting requirements for firms that custody assets.  These changes affect cost basis information for capital gains beginning with 2011 tax filings.  We believe the new regulations are a benefit to our clients, and we outline the preparation we have completed as a result of these regulatory changes.  In addition, we have outlined the potential challenges, and the questions every person should be asking their custodian and/or advisor. 


   2010     
          
          November 2010: The Cost of Modern Portfolio Theory (MPT)
          Modern Portfolio Theory has long been regarded as the foundation for asset allocation decision-making.  The
          framework provides a precise numerical solution to portfolio diversification.  We believe that there are 
          fundamental flaws in both its assumptions and in its implementation, leading to sub-optimal results for clients.  
          Conversely, we are thoughtful in how we approach diversification, knowing there is no substitute for common
          sense.
     
          June 2010: Have Hedge Fund-of-Funds Added Any Value?          
          Hedge Fund of Funds (FoF) have expanded over the past two decades to their peak in 2008.  These investment
          vehicles provide investors with broad exposure to the hedge fund industry, charging an additional layer               
          of fees for their services.  Given the additional costs and risks assumed, we believe that hedge FoF's 
          have not exhibited any added value compared to the broad market indexes.

          March 2010: Remember Goldilocks?
          The phrase "Goldilocks" typically refers to a period in which the economy is growing, but not too strong,  
          while accompanied by a low and stable inflationary environment.  Over the past year, most pundits and investors  
          highlighted the potential risks of a double-dip recession for the global economy, or the dangers of hyperinflation.  
          However, no one even remotely suggested the potential for a Goldilocks environment, which we believe was not
          reflected in the market until mid-February.


    2009   
    

December 2009: Blowing "Bubbles"
(Featured in Barron's Market Watch section for the week of December 28th, 2009, page M11)
Financial or asset bubbles have existed in modern economies for hundreds of years.  For those of us who have blown soap bubbles as a child (or with our own children), we know that it is nearly impossible to predict how big the bubbles might get, how high they will float, or how long until they eventually pop.  Amazingly, this is no different with financial bubbles, except that not everyone believes there will be that same inevitable 'pop."  We are concerned that asset bubbles are currently forming in some areas.

          September 2009: The Risk Appetite is Still Low
          After an impressive rise in prices across various categories over the past six months, are investors ignoring the
          risks once again?  Our observations in the capital markets and sentiment across the spectrum point to a
          persistent elevated level of cautiousness, despite the rise in "risky" asset prices.

          August 2009: The ETF Myth
          ETFs have grown in popularity over recent years and are now considered by many to be a better investment
          vehicle than other options, such as mutual funds.  Firms that sell ETFs are touting them as the superior
          alternative, and some investors are even starting to view ETFs as a distinct asset class needed for their portfolios.
          While ETFs possess some material advantages, they are still subject to the same shortcomings as all
          distribution instruments.

          June 2009: Liquidity or Fundamental Driven?
          The recent sharp rise in equity and commodity prices since their March lows begs the question: Is this recent
          upturn driven by fundamentals or just a rally created by cheap money (liquidity) in the financial system?  Or both?
          While we believe that the recent reversal in performance is primarily driven by liquidity, we also feel that
          fundamental components are evident in some cases.

          March 2009: Time to Buy TIPS? Not Yet
          We feel that TIPS are a perfect hedge against inflation over the long term.  However, we feel that they are
          attractive only from a relative standpoint today and not on an absolute basis.  We believe that the time to buy
          TIPS is not now but rather in the next few years.    


    2008

December 2008: The Case for Convertible Bonds (over High Yield)
The sharp decline in bond prices across the spectrum, except Treasuries, has created a significant opportunity in the debt market. Investing in distressed debt today is likely to generate long-term, equity-like returns (10-plus-percent) for investors. While many are proposing that the high-yield bonds are a great place to invest at this time, we believe convertible bonds are likely to generate better returns than high-yield bonds with similar risk.
 

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