Single Point of View

Single Point of View is our way to occasionally share planning ideas relating to personal finance. Our goal is to pass along concepts that you may not be exposed to on a daily basis.

Click envelope icon below to Subscribe

My path to Chief Investment Officer at Single Point most recently took me through BNY Mellon Wealth Management, where I had been since 2005. My role as Senior Portfolio Manager at BNY allowed me to work very closely with clients in constructing portfolios; while understanding their goals and always mindful of how the markets impact them both financially and behaviorally. Sitting on BNY’s Solution Strategy Committee and the Boston office’s Investment Implementation Committee has helped shape my investment decision-making. Ultimately, the desire to fully own and shape the firm's investment philosophy brought me to step into a Senior Partner role as Single Point's CIO.

After receiving my bachelor’s degree at The Wharton School and my MBA from Northwestern University’s Kellogg School of Management I made a few stops prior to my 12 years at BNY. These experiences included the M&A group at GE Capital; a tech-focused merchant bank, Springwell Capital Partners; and Merrill Lynch’s Private Client Group.

I have been fortunate to have the opportunity to share my expertise in giving back beyond my direct dealing with clients. Currently, I chair the investment committee for the Home for Little Wanderers. I am an active board member and former President of the Boston Chapter of the The Association of Latino Professionals for America (ALPFA). I have been a charter member of the Latino Legacy Fund of The Boston Foundation. LLF is a special interest fund targeting the Latino Community of Boston.

Most recently, I have had the honor of being appointed by Governor Charlie Baker to the board of Mass Ventures, the state of Massachusetts’ venture capital arm.

My wife Nancy and I, along with our two daughters, live in Wellesley, MA and enjoy relaxing on Cape Cod in the summer.

Stock-picking Mutual Funds die hard… for now

The ability of traditional Mutual Fund stock-pickers to deliver out-performance has been decaying for 2 decades. A recent WSJ editorial by renowned finance scholar Burton Malkiel sites the most recent stats published by Standard-&-Poor's and they are absolutely ugly. •“More than 90% of active US managers under-performed their benchmark indexes over a 15-year period.”  •“Over 85% of small-cap managers under-performed the S&P Small-Cap Index.” •“Since 2001, 89% of actively managed International funds had inferior performance. “ •“Even in less efficient Emerging markets, index funds outperformed 90% of active funds” The total value of US public stocks is worth 25 Trillion dollars, and though active stock-picking funds still dominate with market share at around 67%, over the last 5 years their share has declined by 12%.  In terms of new money flows, the Market-Tracking index products have been taking 75-80% of the available dollars. This is partly a reflection of younger investors’...
Continue reading

Markets are not always efficient, nor right

Of the 46 previous declines of -10% or more in the stock market (S&P500), a little more than a third (19) became bear markets, defined as a drop of at least -20%.  Most of the -10% pull-backs – as sharp and painful as they are - turned out to be just false signals and momentary detours as the market resumed its upward march within months.  The Market at times becomes divorced from fundamentals, and over-obsessed with ‘headline’ risk.  Over-interpreting the ‘signal’ from these pullbacks is almost always a losing proposition.  Discipline in the face of noise is essential to long term out-performance. I have also observed that every now and then different asset markets go through bouts of over-pessimism or over-optimism. You may hear that a certain asset class (e.g. high-yield bonds) or sector (e.g. pharma) is ‘trading on sentiment’ rather than fundamentals; or that its price reflects an implausibly negative...
Continue reading

Rene Jarquin - My Personal Story

I believe America’s economy is exceptional.  Despite the many head-winds faced in the last decade, there is no country where I would rather raise my family and pursue my passion - investing. In my first blog I thought that you should get a sense of who I am, so let me do so through a short personal statement. I was 9 years old when my family fled the communist take-over of Nicaragua.  My parents were 42 and 36, so I have first-hand experience of economic loss born of political risk - and what it means to start over.  I suppose like most immigrants to the US, I tend to think there is no better place to invest than here.  I am aware of my bias, and I am not blind to our flaws – perhaps none more glaring than the conditions that led to the sub-prime crisis a decade ago.  Even...
Continue reading