2012 Clear Harbor Flash
Market Flash: The Fiscal Cliff - Hang In There
December 19, 2012
Having given considerable attention to potential impacts from the fiscal cliff, we at Clear Harbor are cautioning our clients to take a longer view of the potential policy impacts on their portfolios. No proposal currently on the table in Washington includes adjustments to the taxation of dividends and capital gains sufficient, in themselves, to warrant improvising dramatic adjustments to portfolio allocations. However, it is worth outlining the current state of negotiations between the White House and House Republicans, lessons from past major tax reform efforts, and the basic steps in the process to look for in the coming weeks, months and years.
Market Flash: Recalibrating Models—and Expectations
November 5, 2012
Fixed income is through the roof—and possibly nearing a ceiling. In recent years, a wave of cash has flowed out of money market and equity funds and into corporate and government bond funds. Momentum in the sector has built to the point where we must ask: is a bubble forming? And how should this affect portfolio positioning for our clients?
Market Flash: The Presidential Race — Don’t Change That Channel
August 17, 2012
At Clear Harbor, as at many companies across America, our team is watching the presidential contest unfold from a range of ideological perspectives. As private citizens, several of us have personal commitments to House, Senate and presidential candidates of both major parties, and our water-cooler debates certainly become more spirited during the campaign season.
But as professional investors, we share a common focus on the substantive nexus between the public and private sectors, and how any change stands to affect our clients. For example, our models that weigh the benefits of a Master Limited Partnership against those of a high-yielding stock must anticipate likely scenarios for tax and regulatory policy.
As is typical of our contrarian approach, we question our industry’s widespread reliance on election forecasts provided by popular political commentators or buzzy prediction markets, all of which project a comfortable margin of victory for the incumbent. We believe a deeper look suggests a much closer race than what many market participants expect.
Market Flash: The Fickle Gauge of Investor Sentiment
July 29, 2012
Our work suggests that sentiment indicators are more reliable in predicting a bottom than a top in the market, as even modestly constructive news can spark near-term buying and short covering. Indeed, this proved to be the case last week, as confirmation of weak but positive GDP growth in the U.S. was joined by vague but dramatic comments from European Central Bank president Mario Draghi to drive global markets higher.
Market Flash: South China Sea: The Race For Resources
June 20, 2012
Following his recent trip to Asia, Clear Harbor's Adrian Gray presents his analysis on the burgeoning race for natural resources that is underway between nations in the South China Sea. Please open to PDF file below to read his observations.
Market Flash: Time For The Fed To Step Aside
June 4, 2012
Clear Harbor CEO Aaron Kennon writes in response to the slowdown in the U.S. economic recovery, calling for Congress and the President to take new policy actions to address the situation. Monetary policy, Kennon argues, has run its course as an instrument for addressing the employment crisis and the general economic malaise.
Market Flash: Notes From The Road: Santa Cruz province, Argentina
April 25, 2012
Clear Harbor CEO Aaron Kennon has returned from his trip to Argentina, which happened to coincide with the nationalization of YPF, a local oil company that was previously a subsidiary of the Spanish company Repsol. Please open the PDF document below to see some photos from his trip and read some insights that he brought back for investors.
Market Flash: Notes On The Market
April 16, 2012
The last few weeks have highlighted how quickly positive market sentiment can give way to pessimism in this age of turbulence. Equity indices in the U.S. have faltered three out of the last four weeks on the heels of weaker-than-expected employment data, ongoing Eurozone concerns, and a notable deceleration in Chinese growth. The U.S. Treasury market witnessed a sharp flight to quality with 10-year yields trending below 2.0% after many market strategists and economists warned earlier this year that yields were destined to trend sharply higher over the course of 2012. In our March outlook for this current quarter, we outlined why bond market bears would need to wait a while longer to see yields move higher and prices lower.
Flash: Clear Harbor Recognized as the "Best Newcomer In Asset Management".
February 15, 2012
Clear Harbor has been honored as a finalist for the “Best Newcomer in Asset Management” award at the annual Private Asset Management Awards dinner. PAM is a London-based publication that covers the wealth management industry. They held their annual gala last Tuesday night in New York, and Clear Harbor Chief Executive Aaron Kennon was pleased to attend.
Last year, we were among Investment News’ rankings of “Up-and-Coming” Investment Advisors and last month Financial Planning magazine ranked us in their top 20 firms. This latest recognition from PAM is a reaffirmation of our work here at Clear Harbor Asset Management, but the most telling attribute of our team of investment professionals has been our 99% client retention.
We are honored by the recognition and we will strive to continue the excellence that it represents for our clients.
Market Flash: Markets Await Word on Patient Status in Eurozone
February 7, 2012
Watching negotiations unfold between political leaders in Greece and the European Central Bank (ECB) is like monitoring the progress of someone’s high-risk medical procedure from afar. Credible information is scarce, and we’re left to scrutinize the tone of the hopeful comments offered by officials involved that are probably overly optimistic. Over the last several days and weeks, rumors and some statements that have the ring of truth have escaped the closed negotiations and have led some observers to hope that a solution to the Greek debt restructuring is imminent while others have concluded that at this final hour, many fundamental challenges remain in order to achieve a favorable outcome.
Flash: Clear Harbor Ranked Among Top RIAs
January 9, 2012
Financial Planning magazine started off 2012 with a cover story on the leading Registered Investment Advisory (RIA) firms in the business, and we’re proud to be ranked #18 on their list of the top 50 firms emerging in a field of many thousands. This recognition comes as we begin 2012 with lofty ambitions, a strong team and an investment portfolio that is well-positioned to deliver for clients in spite of the risks facing the global economy.
As the magazine story makes clear, our RIA business model is resonating with investors at a time when people are looking for new and better alternatives to the conflicted financial conglomerates and high-fee investment funds that have proven to be less than satisfactory custodians of their hard-earned wealth. Over the past 30 years, the RIA space has grown from close to zero to about $2 trillion in cumulative assets under management, reports Financial Planning. While that number is dwarfed by the $9.3 trillion that is still in the hands of full-service brokerages and banks, the magazine says the numbers look poised for a reversal.