(Benzinga) - Dr. Bhojraj and Matthew Malgari are portfolio managers and co-founders of L2 Asset Management, an SEC-registered investment advisory firm offering clients a wide range of equity investment products and solutions, using pooled vehicles and separately managed accounts.
As set forth in an article they co-authored with Nathan Przybylo, which was published on Advisor Perspectives, they believe:
1. The stock market is not always efficient.
2. Beating the market requires patience and the disciplined application of rules from the field of behavioral finance.
3. As an example, simply eliminating money losing companies from profitable ones in the Russell 2500 index would be a more responsible, "evidence-based", strategy than buying an index fund that blindly tracks the index (like Vanguard's Small-Cap Index Fund [VSMAX]).
4. From December 31, 1978-April 30, 2022, following a passive strategy cost investors $66 for every dollar they invested, compared to a portfolio that excluded money losing companies.
According to Dr. Bhojraj: "We acknowledge the valuable role of index funds. Beta should be inexpensive. But the massive shift from active mutual funds into passive ones is causing investors to ignore overwhelming data demonstrating that simple tweaks to the holdings in some indexes could yield higher returns than just holding the index.
Sometimes, what seems inexpensive can actually cost investors dearly."
Dr. Bhojraj is available for interviews. Please contact him at: Sanjeev@l2asset.com.
Please note: Dr. Bhojraj's views are those of his firms' and its partners.
Dr. Sanjeev Bhojraj is a portfolio manager and co-founder of L2 Asset Management. He is widely published in journals in finance and accounting and specializes in behavioral finance. Dr. Bhojraj is a Chaired Professor in Asset Management and the co-director of the Parker Center for Investment Research at Cornell University's Business School. He has a Ph.D, ACA, ACMA and B.Com.
Matt Malgari is a portfolio manager, the Managing Member and co-founder of L2 Asset Management. Matt spent 14 years at Fidelity Investments as an Assistant Portfolio Manager on its $70 billion Diversified International Fund, sector analyst, diversified analyst and trader. In 2010, Matt became the Managing director of Equity Research for Knight Capital Group. He received his MBA from Cornell University and a BA from Middlebury College.
By PRWeb
June 7, 2022
