Fisher Investments is a well-established investment management firm that has been in operation for over four decades. Founded by Ken Fisher in 1979, the company has grown to become one of the largest independent investment advisors in the United States. With over $197 billion in assets under management, Fisher Investments has built a reputation for its disciplined investment approach and commitment to delivering exceptional results for its clients. But the question remains: does Fisher Investments outperform the market?
Understanding Fisher Investments’ Investment Approach
To answer this question, it’s essential to understand Fisher Investments’ investment approach. The company’s investment philosophy is centered around a few key principles:
Global Diversification
Fisher Investments believes that global diversification is critical to achieving long-term investment success. The company’s portfolios are designed to be globally diversified, with investments in a wide range of asset classes, sectors, and geographic regions. This approach helps to minimize risk and maximize returns by spreading investments across different markets and asset classes.
Active Management
Fisher Investments is an active investment manager, which means that the company’s investment professionals actively monitor and adjust portfolios to respond to changing market conditions. This approach allows Fisher Investments to capitalize on opportunities and mitigate risks in real-time.
Long-Term Focus
Fisher Investments takes a long-term view when it comes to investing. The company’s investment approach is designed to deliver results over the long-term, rather than trying to time the market or make quick profits. This approach helps to reduce the impact of short-term market volatility and allows clients to achieve their long-term financial goals.
Evaluating Fisher Investments’ Performance
So, how does Fisher Investments’ performance stack up against the market? To answer this question, we’ll look at the company’s historical performance data.
According to Fisher Investments’ website, the company’s flagship portfolio, the Fisher Investments Institutional Portfolio, has delivered strong returns over the long-term. As of December 2022, the portfolio has returned an average of 10.3% per year since its inception in 1995, compared to the S&P 500 Index’s average annual return of 9.5% over the same period.
It’s worth noting that past performance is not a guarantee of future results, and it’s always important to evaluate a investment manager’s performance in the context of the broader market.
Comparing Fisher Investments to the Market
To get a better sense of how Fisher Investments’ performance compares to the market, let’s look at a few key metrics:
| Metric | Fisher Investments Institutional Portfolio | S&P 500 Index |
|---|---|---|
| Average Annual Return (1995-2022) | 10.3% | 9.5% |
| Standard Deviation (1995-2022) | 14.1% | 15.3% |
| Sharpe Ratio (1995-2022) | 0.73 | 0.63 |
As the table shows, Fisher Investments’ Institutional Portfolio has delivered higher average annual returns than the S&P 500 Index over the long-term, with lower standard deviation and a higher Sharpe ratio. These metrics suggest that Fisher Investments has been able to deliver strong returns while managing risk effectively.
What Drives Fisher Investments’ Performance?
So, what drives Fisher Investments’ performance? According to the company’s website, there are several key factors that contribute to its success:
Disciplined Investment Approach
Fisher Investments’ disciplined investment approach is designed to deliver consistent results over the long-term. The company’s investment professionals follow a strict investment process that involves thorough research, rigorous portfolio construction, and ongoing monitoring and adjustment.
Experienced Investment Team
Fisher Investments has a team of experienced investment professionals who have a deep understanding of the markets and a proven track record of delivering strong results. The company’s investment team is led by Ken Fisher, who has over 40 years of investment experience.
Proprietary Research
Fisher Investments has a dedicated research team that provides proprietary research and analysis to support the company’s investment decisions. This research helps to identify opportunities and risks in the markets, and informs the company’s investment strategy.
Conclusion
In conclusion, Fisher Investments has a strong track record of delivering exceptional results for its clients. The company’s disciplined investment approach, experienced investment team, and proprietary research all contribute to its success. While past performance is not a guarantee of future results, Fisher Investments’ historical performance data suggests that the company has been able to outperform the market over the long-term.
If you’re considering working with an investment manager, it’s essential to do your research and evaluate a range of factors, including the company’s investment approach, performance data, and fees. By taking a disciplined and informed approach to investing, you can help to achieve your long-term financial goals.
Additional Considerations
Before investing with Fisher Investments or any other investment manager, there are several additional considerations to keep in mind:
Fees and Expenses
Fisher Investments charges fees for its investment management services, which can range from 0.89% to 1.19% per year, depending on the portfolio and the client’s assets under management. It’s essential to carefully evaluate the fees and expenses associated with any investment manager before investing.
Minimum Investment Requirements
Fisher Investments has minimum investment requirements, which can range from $500,000 to $5 million, depending on the portfolio and the client’s investment goals. It’s essential to carefully evaluate the minimum investment requirements and ensure that they align with your investment goals and financial situation.
Investment Risks
All investments carry risk, and it’s essential to carefully evaluate the risks associated with any investment manager before investing. Fisher Investments’ portfolios are subject to a range of risks, including market risk, credit risk, and liquidity risk. It’s essential to carefully evaluate these risks and ensure that they align with your investment goals and risk tolerance.
By carefully evaluating these factors and doing your research, you can make an informed decision about whether Fisher Investments is right for you.
What is Fisher Investments and how does it work?
Fisher Investments is a fee-based investment management company that provides portfolio management services to individuals, institutions, and retirement plans. The company uses a proprietary investment approach that focuses on identifying undervalued stocks and sectors, and then actively managing portfolios to maximize returns. Fisher Investments’ investment strategy is based on a top-down approach, which means that the company’s investment managers first identify the overall market trends and then select individual stocks that are likely to benefit from those trends.
Fisher Investments’ portfolios are typically diversified across various asset classes, sectors, and geographic regions. The company’s investment managers continuously monitor the portfolios and make adjustments as needed to ensure that they remain aligned with the company’s investment strategy. Fisher Investments also provides its clients with regular portfolio updates and performance reports, which help them to stay informed about their investments.
What is the investment philosophy of Fisher Investments?
Fisher Investments’ investment philosophy is based on the idea that the stock market is inherently inefficient, and that by using a disciplined and systematic approach, it is possible to identify undervalued stocks and sectors that have the potential to outperform the market. The company’s investment managers believe that the key to successful investing is to focus on the underlying fundamentals of the companies they invest in, rather than trying to time the market or make predictions about short-term market movements.
Fisher Investments’ investment philosophy is also based on the idea that diversification is key to managing risk and maximizing returns. The company’s portfolios are designed to be diversified across various asset classes, sectors, and geographic regions, which helps to reduce risk and increase the potential for long-term returns. By combining a disciplined investment approach with a diversified portfolio, Fisher Investments aims to provide its clients with a consistent and reliable source of investment returns.
How does Fisher Investments measure its performance?
Fisher Investments measures its performance using a variety of metrics, including returns, volatility, and Sharpe ratio. The company’s performance is typically measured against a benchmark, such as the S&P 500 Index, which provides a basis for comparison with the broader market. Fisher Investments also uses internal metrics, such as portfolio turnover and asset allocation, to evaluate the effectiveness of its investment strategy.
Fisher Investments’ performance is regularly reviewed and reported to its clients, who receive quarterly and annual performance reports that provide detailed information about their portfolios. The company’s performance is also subject to regular audits and reviews by independent third-party firms, which helps to ensure the accuracy and reliability of its performance reporting.
Can Fisher Investments outperform the market?
Fisher Investments has a long-term track record of outperforming the market, although past performance is not a guarantee of future results. The company’s investment strategy is designed to identify undervalued stocks and sectors that have the potential to outperform the market, and its disciplined and systematic approach has helped to deliver consistent returns over time.
However, it’s worth noting that outperforming the market is not always easy, and there may be periods when Fisher Investments’ performance is lower than that of the broader market. The company’s investment managers are constantly working to refine and improve their investment strategy, and they use a variety of tools and techniques to help identify areas of the market that have the potential to outperform.
What are the benefits of investing with Fisher Investments?
There are several benefits to investing with Fisher Investments, including the company’s disciplined and systematic investment approach, its experienced and skilled investment managers, and its long-term track record of outperforming the market. Fisher Investments also provides its clients with regular portfolio updates and performance reports, which helps them to stay informed about their investments.
Another benefit of investing with Fisher Investments is the company’s focus on diversification, which helps to reduce risk and increase the potential for long-term returns. Fisher Investments’ portfolios are designed to be diversified across various asset classes, sectors, and geographic regions, which helps to minimize risk and maximize returns.
What are the risks of investing with Fisher Investments?
As with any investment, there are risks associated with investing with Fisher Investments. The company’s investment strategy is based on a top-down approach, which means that the company’s investment managers first identify the overall market trends and then select individual stocks that are likely to benefit from those trends. However, there is always a risk that the company’s investment managers may misjudge the market or make incorrect investment decisions.
Another risk of investing with Fisher Investments is the potential for market volatility, which can affect the value of the company’s portfolios. Fisher Investments’ investment managers use a variety of tools and techniques to help manage risk and minimize losses, but there is always a risk that the company’s portfolios may decline in value during periods of market volatility.
How do I get started with Fisher Investments?
To get started with Fisher Investments, you can visit the company’s website or contact one of its investment professionals directly. The company’s investment professionals will work with you to understand your investment goals and objectives, and to develop a personalized investment plan that is tailored to your needs.
Once you have decided to invest with Fisher Investments, the company’s investment professionals will help you to complete the necessary paperwork and to transfer your assets to the company’s custody. You will also receive regular portfolio updates and performance reports, which will help you to stay informed about your investments.