Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Portfolio > ETFs > Broad Market

No Individual Equities, Please

Your article was successfully shared with the contacts you provided.

One thing that Scheffler has no interest in for any of his strategies is individual equities. “We don’t think the marketplace needs any more money managers that just buy individual stocks,” he says. “What the market desperately needs are money managers that have the flexibility to identify whether the market is favorable for stocks, or whether the market if favorable for real estate or bonds or cash or even defensive pieces. That’s what the market really needs. The S&P has been essentially flat now for the better part of seven years. Nobody signs up for that. Nobody signs up for an issue where we have to wait for seven years. We’ve been able to essentially reduce that waiting period to get to profitability in as little as a year. We’ve never had back-to-back losing years and we’ve been successful at limiting our losses to low- to mid-single digits when we do lose money and again, that’s made all the difference in the world.”

Scheffler sums up his investment philosophy in a single word–flexibility. “The market has been undergoing the same struggle that it goes through consistently through its history–between bulls and bears, between optimism and pessimism–and those things always get factored into the markets in, we think, extreme ways…What we’re doing now is the same thing that we always do, having enough flexibility to increase exposure to equities or…to bonds as the market waxes and wanes.”


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.