The 10 Spot
The 10 Spot is an approachable, unassuming podcast that explains various wealth management concepts and topics in 10 minutes or less! One 10 Spot at a time, we will focus on a timely or listener-requested topic in the personal finance, family planning, or institutional investing world. Join us for a 10 Spot and find the answer to a question you have always wanted to ask – or were afraid to!
Episode 3: Hedge funds and what they can add to portfolios
11:44Hedge funds are seldom out of the public eye for long. Top managers can acquire an almost legendary status within the financial community—and the asset class as a whole is often grabbing headlines. For most of their history, hedge funds have been associated with ultrawealthy and institutional investors that had the scale and resources to source and monitor managers. That has been changing, as they have become easier to access by a wider group of investors. And the benefits of adding hedge funds to a portfolio can be considerable—with such funds potentially offering greater downside protection, alternative sources of return, and diversification. But what are they and what exactly do they do? Find out in this edition of The 10 Spot!
Bond basics and their role in a portfolio
11:37Bonds can be thought of as an “IOU” with a contractually defined series of cash flows which the issuer promises to pay in the defined currency. The terms of a bond cannot be changed after issuance, without the agreement of the bondholders. The principal amount, or par value of a bond is the face value on which interest is paid in the form of a coupon. In most cases, the principal value is equal to the redemption value, which is the amount that is paid back to the bondholder at maturity. Usually bonds are only available with a certain minimum denomination, i.e. a minimum principal value. The most common denomination for corporate bonds is $1,000 but the face value for government issued debt could vary. So what types of bonds are there? What types of credit risk should I be aware of? How liquid are bonds? Find out in this edition of The 10 Spot!
What are value and growth stocks?
09:36Investors can choose between market ‘tortoises’—plodding and often underrated businesses—or ‘hares’— fast-growing and occasionally flashy companies. In a nutshell, this is the distinction between ‘value’ and ‘growth’ stocks. These two broad classes of equities are frequently mentioned in financial commentary, especially at times of economic transition or structural change which can favor either market tortoises or hares. So, beyond the crude clichés, what are growth and value stocks? When does each class of stocks perform best? Should investors even attempt to pick a winner? And what does this mean for investors as they plan their portfolio strategies? Find out in this edition of The 10 Spot!
