RMB Capital Management

Insights Library

Our Perspective

This collection of articles and commentaries from RMB provides examples of the in-depth research and analysis, industry knowledge, and fundamental principles underlying what we do for our clients. Explore the content available by scrolling or filtering topics.

The Case for High Quality

Focusing on high-quality companies—defined as those that are well-managed with stable business models and extremely low credit risk—is a core component of our investment philosophy. This article explains why high-quality stocks tend to outperform low-quality stocks over the long term, and, importantly, why high-quality stocks are typically strongest when most needed—during a bear market.

Asset Class Overview: Absolute Return

The primary distinction of Absolute Return investments is that they are uncorrelated to the investment categories of Equities, Fixed Income, or Real Assets. This article explains why and illustrates how Absolute Return investments can provide good diversification and improve the risk-adjusted return of an investor’s overall portfolio.

Bond Mechanics & Fixed Income Markets

Bonds play an important role in any investor’s portfolio. To understand how bonds react in different economic and market environments, it’s helpful for investors to have a general understanding of the simple mechanics behind how bonds work. In this article, Ryan Forberg, CFA, explains the characteristics of bonds, highlights the key drivers of the bond market, and outlines expectations for the bond market in 2017.

Going Abroad: Expanding Investment Opportunities Outside the U.S.

Over the past few decades, global growth has increasingly come from countries other than the United States. However, because investors tend to have a bias to their home country, many U.S. investors may be missing out on a large opportunity set of investments around the world. We believe the case for including international markets in equity allocations is strong and enduring—and that quality trumps domicile when investing in stocks for the long term. 

Capitalizing on Inefficiencies

Professor Eugene Fama developed the efficient-market hypothesis (EMH) in the 1960s at the University of Chicago. The EMH became a widely adopted framework for testing different academic theories and various types of investment strategies, all with the goal of determining possible ways to generate better-than-market returns. Over time, several anomalies were found in the EMH, supporting the case that certain types of market inefficiencies do exist. We believe markets are efficient in the long run but can often be highly inefficient in the short run. The RMB Special Situations strategy (“Special Situations”) seeks to capitalize on these short-term market inefficiencies.

The Role of Real Assets in Investor Portfolios

We believe that asset allocation is the primary method for positioning portfolios to meet their risk-reward objectives. Each investment category in the allocation serves a distinct purpose in an investor’s portfolio. In the case of real assets, such as commodities or private real estate, they are typically expected to hedge a portfolio against rising inflation.