The great ETF dissection of active funds

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Active mutual funds can be mysterious black boxes. Here is a method to sneak a peek inside.

Mutual funds are very opaque structures. There is so much we don’t know about them, so much we are refused to access, even when we invest in them.

It is indeed very hard to access the actual composition of their assets (the individual stocks or bonds they own). This information is barely disclosed by managers for various reasons. They might fear to see their ideas and work “stolen”. They might fear being criticized for every decision they make. They might even fear that everyone realize they charging active fund fee level for passive management (which is called “closet indexing”, and is very bad, look out for it).

The main information they often give us about what we really own, is the “benchmark”. This benchmark is supposed to be a good proxy of the fund asset composition and potential risks. But most of the time the benchmark they choose seems a bit off or even misleading. It is always an index, and is therefore very theoretical, but it is not its biggest flaw.

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Artificial intelligence, what can a video game tell us ?

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Everyone is now talking about artificial intelligence. But is it worth it ? Video games might help us on this.

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Since a couple of months, artificial intelligence is the new hype. Everyone is talking about it, everyone wants to jump in, to be part of it. Applications are, it seems, almost ready and will disrupt everything, everyone. You have a job, well be careful because you might lose it to a robot in the next few years… health, transports, law, finance… no one is safe against the almighty robot…

Really ?

Well I think this might need a little more time and here is why.

I am a gamer.

Well I used to be. That was before I had the smart idea to start my own company and have three “wonderful” kids at the same time. Now gaming time got a little bit rarer…

But I am still playing from time to time, and when I do, I very frequently get back to a very specific game style, strategy, and an even more specific franchise, Sid Meier’s Civilization.

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