David J. Merkel, CFA, FSA — 2010-present, I am working on setting up my own equity asset management shop, tentatively called Aleph Investments. It is possible that I might do a joint venture with someone else if we can do more together than separately.
From 2008-2010, I was the Chief Economist and Director of Research of Finacorp Securities. I did a many things for Finacorp, mainly research and analysis on a wide variety of fixed income and equity securities, and trading strategies.
Until 2007, I was a senior investment analyst at Hovde Capital, responsible for analysis and valuation of investment opportunities for the FIP funds, particularly of companies in the insurance industry. I also managed the internal profit sharing and charitable endowment monies of the firm.
From 2003-2007, I was a leading commentator at the investment website RealMoney.com. Back in 2003, after several years of correspondence, James Cramer invited me to write for the site, and I wrote for RealMoney on equity and bond portfolio management, macroeconomics, derivatives, quantitative strategies, insurance issues, corporate governance, etc. My specialty is looking at the interlinkages in the markets in order to understand individual markets better. I no longer contribute to RealMoney; I scaled it back because my work duties have gotten larger, and I began this blog to develop a distinct voice with a wider distribution. After three-plus year of operation, I believe I have achieved that.
Prior to joining Hovde in 2003, I managed corporate bonds for Dwight Asset Management. In 1998, I joined the Mount Washington Investment Group as the Mortgage Bond and Asset Liability manager after working with Provident Mutual, AIG and Pacific Standard Life.
My background as a life actuary has given me a different perspective on investing. How do you earn money without taking undue risk? How do you convey ideas about investing while showing a proper level of uncertainty on the likelihood of success? How do the various markets fit together, telling us us a broader story than any single piece? These are the themes that I will deal with in this blog.
I hold bachelor’s and master’s degrees from Johns Hopkins University. In my spare time, I take care of our eight children with my wonderful wife Ruth.
Blog Objectives
My objectives in this blog are relatively simple:
- To further flesh out my thoughts from RealMoney, and provide for a greater degree of interaction with readers there.
- To interact more broadly with the blogosphere, adding my own distinct ideas to the mix.
- To develop an investment management shop. Initially, this would be institutional money management on a “long only” and hedged basis. Eventually, I would create a mutual fund so that smaller retail investors can invest with me. I would try to buy up a failed mutual fund shell, allowing a way in that is cheaper, and providing tax-sheltered gains to early investors. But all of this is a dream that might not be realized. Until then, I can tell you about managers who manage money in a way similar to mine.
All of these goals rely on the help of Jesus Christ and my readers. I thank you for taking the time to read what I write.
David’s latest columns:
- 5:25am Friday, May 18, 2012: Don’t Become the Market - Wall Street All-Stars» David Merkel
It was late 1993, and I knew that we could make a lot of money if I sold floating-rate Guaranteed Investment Contracts. Let me quote an earlier piece: My goal as an actuarial businessman was to make profits with modest risk for my ultimate owners, who were the mutual policyholders. Once I faced a situation [...] - 12:29am Thursday, May 17, 2012: On Sovereign and Quasi-Sovereign Risks - Wall Street All-Stars» David Merkel
I wrote the following on December 1st, 2009: -==-=-=-=-=-=-=-=–==–==-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=- I like investing internationally, because of the diversification it offers, both in stocks and bonds. Or, think of it as a hedge. Will the American Experiment continue to prosper? We have come a long way from the Founding Fathers, and more than half of it is [...] - 1:32am Wednesday, May 16, 2012: The Right Reform for the Fed - Wall Street All-Stars» David Merkel
I wrote the following on November 28th, 2009: =–==-=-=-=-=-=-=-=-=-=-=-=–==-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=- Ben Bernanke has an editorial in the Washington Post that attempts to defend the Fed. Here is my discussion of his editorial: These matters are complex, and Congress is still in the midst of considering how best to reform financial regulation. I am concerned, however, that [...] - 11:50pm Monday, May 14, 2012: Notes from Recent Travels - Wall Street All-Stars» David Merkel
I wrote the following on November 21st, 2009: -===–==-=-=-=-=-=–=-==-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=- Before I begin this evening, I would like to comment on my absence for the last week. I gave a talk on Friday to the Southeastern Actuaries Conference. I found myself behind the eight-ball, because of my many other projects, and so I had to block [...] - 11:53pm Saturday, May 12, 2012: How to Regulate the Banks, and other Financials - Wall Street All-Stars» David Merkel
I wrote the following on November 11th, 2009: =–=-==–=-=-==–==-=-=–==-=-=–=-==-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=–= At the Treasury meeting, I commented that the insurers were better regulated for solvency than the banks. One of the reasons for that is that they do harder stress tests, and they look longer-term. So, if one is trying to regulate banks for solvency, there are [...]
—
Wall Street All-Stars RSS» David Merkel
