Is Local Knowledge an Advantage?

Riepe, Mark W.
April 2008
Journal of Financial Planning;Apr2008, Vol. 21 Issue 4, p38
Academic Journal
The article discusses the issue whether investor performance is influenced by the tendency to hold more share of nearby firms. It states that individuals who invest more in local firms have higher risk-adjusted performance. It provides three possibilities regarding the tendency to overweight portfolio's locally, including the investor's connection with the firm, confusing quantity with quality, and familiarity. Also presented is a dataset that matched the holdings of individual actively managed equity funds with the distance from the headquarters of those firms to the fund's location.


Related Articles

  • Calming Nervous Clients. Kessler, Stuart // Accounting Technology;Jan2009 CPA Wealth Provider, p4 

    The article discusses how the author as a financial planner has been dealing with nervous clients. He has advised nervous clients to re-emphasize the fact that their portfolio is soundly invested because it is diversified. He has found the helpfulness to ask clients to recall on what their net...

  • Multi-manager investments to grow in China. Lau, John // Asian Investor;Dec2008, p32 

    The article discusses the manager-of-managers and fund-of-funds concepts. Multi-manager investment products are established on the belief that not all money managers are good in all markets. Multi-manager products are aimed to spread investment money. Manager of managers may be responsible for...

  • Investing for '60-Somethings'. Britt, Julie // Advisor Today;Jul2008, Vol. 103 Issue 7, p16 

    The article provides strategies for investment advisor on convincing older investors to change or update their investment strategy. Investment advisor should help older clients develop a realistic budget. CFA executive vice president of investment and marketing groups Jonathan Scheid states that...

  • Safeguard 7: Avoid investment advisors who sugarcoat reality.  // Hudson Valley Business Journal;6/22/2009, Vol. 19 Issue 24, p8 

    In this article, the author discusses the methods in dealing with an investment advisor. It includes asking to provide one with a return for the entire portfolio. Another, he notes that an advisor should give one an accounting of one's return net of all fees and expenses. He also recommends to...

  • Competing in a Saturated Market. TIBERGIEN, MARK // Investment Advisor;Jan2013, Vol. 33 Issue 1, p39 

    The article focuses on how investors deal with a saturated market condition. It is noted that a saturated market has been created due to the profusion of practitioners plying their trade using virtually the same branding and lack of clarity in financial services business models. It is stated...

  • INDEPENDENT VIEW. Buttercase, Steve // Money Marketing;2/17/2005, p35 

    In the article, the author presents his views on efficient financial planning strategies. He believes that independent financial advisors are in pretty ambiguous situation in selecting a profitable investment fund as the pull of a huge and successful fund is difficult to resist. He says that...

  • Point of difference. Watt, Gregor // Money Marketing (Online Edition);5/7/2012, p5 

    The article offers information on the complexities associated with absolute return sector, which is a type of fund management consisting of funds that focus on European equities, equities in Great Britain, global bonds and multi-asset strategies. According to an investment advisor, absolute...

  • Be careful what you wish for. Raubenheimer, Heidi // Finweek;3/19/2009, Special section p17 

    The article offers information on the vital role played by professional fund managers in effectively managing assets and investments in South Africa. These are the people who are both concerned with active return generation. Moreover, they also determine the fund objectives using asset/liability...

  • VALUE MANAGEMENT. Kavanagh, John // BRW;3/30/2006, Vol. 28 Issue 12, p28 

    The article talks about the portfolio diversification of the Australian investors into global market. The growth of the Australian stock market indicates that the country investors have concentrated on the domestic equities. Financial planners and investment strategists sought to steer the...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics