Fisher investments is a large American investment advisory firm founded by Ken Fisher. As an active investment manager, Fisher investments’ annual returns in 2020 has attracted much attention from investors. In this article, we will review Fisher investments’ investment strategies and analyze its 2020 performance results to provide insights into this influential investment firm.
Fisher investments’ core investment philosophy focused on global diversification
Fisher investments adheres to a global top-down investment approach, emphasizing broad global diversification across countries, sectors and asset classes. Unlike many US investment firms focusing primarily on domestic equities, Fisher investments constructs portfolios containing thousands of securities globally, aiming to reduce portfolio volatility and capture returns from different markets. This global diversification strategy has become the hallmark of Fisher investments.
Fisher investments’ equity-oriented portfolio construction
Within its globally diversified portfolios, Fisher investments tilts heavily toward equities over fixed income securities. As an active equity manager, Fisher investments adjusts equity exposures dynamically based on market conditions rather than maintaining static allocations. During market downturns, Fisher investments would reduce equity allocation and rotate into fixed income to preserve capital. But in general, Fisher investments emphasizes stocks over bonds in its pursuit of growth.
Fisher investments’ 2020 returns benefited from equity market rebound
Bolstered by massive fiscal and monetary stimulus, global equity markets rebounded strongly since the March 2020 lows caused by the COVID-19 pandemic. Fisher investments’ equity-heavy portfolios were well positioned to capture the sharp market recovery. According to client letters reviewed by AdvisoryHQ, Fisher investments’ Private Client Group posted a 2020 return of 19.1% net of fees, handily beating the S&P 500’s 16.3% return. The outperformance demonstrates Fisher investments’ skill in navigating market volatility.
Key takeaways of Fisher investments’ investment strategies and 2020 performance
To conclude, Fisher investments adopts a global diversification strategy spanning countries, sectors and asset classes. It emphasizes equities over fixed income in pursuit of portfolio growth. Backed by this philosophy, Fisher investments generated strong returns in 2020 benefiting from the equity market rebound. While past performance is no guarantee of future results, Fisher investments’ long-term track record proves the success of its investment approach.
Fisher investments is a renowned global investment manager led by billionaire Ken Fisher. In 2020, Fisher investments achieved substantial returns by riding the bull market recovery thanks to its equity-oriented investment strategy and diversified global exposure. The 2020 performance reaffirms the effectiveness of Fisher investments’ core investment philosophy.