User talk:68.174.149.255

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[edit] Fundamentally based indexes

I have reverted Fundamentally based indexes to its previous version. Please discuss changes in discussion first. The article discusses the dispute between calling fundamentally based indexes passive or active management. VivekVish 04:38, 10 April 2007 (UTC)

Hello VivekVish. I think I finally figured out how to 'talk' to you. I am a grad student who just had to write a report on quantitative investing and active portfolio management. We went through a case study on fundamental indexing and saw how it was really active management sold as an index to retail investors. My professor, Andre Perrold, published a report about it that you can see at the hbs.edu website. I'm learning a lot in school and thought writing some of things I learned about on this site might help everyone. —Preceding unsigned comment added by 68.174.149.255 (talk • contribs) 23:51, April 12, 2007
The S&P 500 is more actively managed than a fundamentally based index, since its inclusion criteria is not transparent, replicable, or driven solely by some quantitative measure (like capitalization or sales). Even the MSCI and FTSE indices allow some amount of choice leeway. Indexing is my focus. There are currency indexes that index against the carry trade (ETV Ticker: DBV). There are volatility indexes that map implied volatility of options (Index Ticker: ^VIX). Your definition of index is so narrow as to literally map to nothing. Your definition of active management is so wide as to literally map to everything. Show me an index that does not use a criterion, quantitative or otherwise, to decide how to weight or choose companies.
Just to center everything, please direct all discussion regarding this to Talk:Fundamentally based indexes. As far as the Magellan Fund, please read Wikipedia: Neutral point of view. Your piece is well-written. I am not denying that in the slightest. It just breaks the neutral point of view. VivekVish 02:15, 13 April 2007 (UTC)
You seem to know a lot about investing. Maybe you could help me understand something. All of these companies say they can sell index funds at a low price (Vanguard even gave us a presentation)because it is relatively easy and inexpensive to replicate the S&P500. Why do say it isn't replicapble if all of these companies are doing it? Thanks for your help. —Preceding unsigned comment added by 68.174.149.255 (talk • contribs) 10:58, April 13, 2007
By replicate an index, I don't mean create an index fund based on an index. I mean there are no hard and fast rules for inclusion into the S&P 500, so that anyone given those rules would come up with the same list of stocks. The stocks in the S&P 500 are decided by committee (which is remarkably close to active management). Every fundamental index currently out there has hard and fast quantitative rules, so any two people who use those rules will come up with exactly the same index. In other words, fundamental indices are replicable. VivekVish 17:26, 13 April 2007 (UTC)

Please discuss this in the talk page before making changes. I found numerous definitions that support my point of view. Don't come up with your own definition. Find definitions from outside credible sources to support your point. In any case, you definitely cannot call them portfolios--portfolios are actually financial assets held. See the definition here. I will admit there is a academic discussion about whether to call them passively or actively managed, but that is discussed within the actual article. I'm using the general usage in the intro and then discussing the controversy in the criticisms section. VivekVish 03:26, 24 April 2007 (UTC)

[edit] Welcome

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[edit] Communication

Thank you for the kind words on my talkpage. In order to facilitate future communication, could I please encourage you to create a username? It's free and very simple to do, just click on the "create account" link at the top righthand corner of the page. Also, if there are four of you, I would strongly recommend that you each create a different username. That will help avoid future confusion! As for the Magellan Fund article, I recommend that we pick a single datapoint, and go from there. For example, you're challenging the claim that it's the largest fund in the United States. Alright, can you please provide a source for that information? If so, go ahead and list that source at Talk:Magellan Fund, and we'll go from there as to how it can be properly cited. Best, Elonka 21:11, 13 April 2007 (UTC)