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Andrew Krongold Named Partner at Spinnaker Investment Group

Spinnaker Investment Group

Andrew Krongold Named Partner at Spinnaker Investment Group

Vice President of Investments Andrew Krongold has been named partner in Spinnaker Investment Group, announced company CEO and Chief Investment Officer Morgan Christen. Krongold joins Christen and company president Joseph Stapleton as partners in the seven-member firm, which has more than $330 Million in assets under management.

Krongold has served as Vice President since the firm’s launch in 2016, providing CFO-level services for businesses and individuals such as customized investment management, life insurance, pension plans, and executive compensation solutions. At Spinnaker he provides leadership on the firm’s investment committee and guides marketing and technological innovation efforts.  He holds numerous licenses and professional designations, including Chartered Retirement Planning Counselor.

“We are proud to welcome Andrew as an equity partner of Spinnaker Investment Group,” Christen said.  “He is one of the big reasons we have been named among Orange County’s fastest-growing companies for two years in a row.  Andrew not only continues to provide his clients with world-class financial services but also is a valued community leader making a difference in Southern California.”

Krongold developed a passion for investments and teaching others about investing at an early age. He made his first stock purchase at 13 and chose wealth management as a career path soon after graduating from high school.  “As a kid I was fascinated with the idea that you could buy a piece of a large company,” he said.

Trading stocks and managing 401k plans early on provided great perspective on the highs and lows investors experience, he added.  “Having personally experienced the emotions associated with both making and losing money, I knew I wanted to join a firm that was independent and focused on the needs of clients, rather than be obliged to sell the financial products offered by a large institutional firm,” said Krongold.

Andrew is active in the community of Orange County where he is a mentor with Big Brothers Big Sisters of Orange County, a Board member for the NextGen division of the Jewish Federation & Family Services of Orange County, and a board member of the Tocqueville Society of Orange County United Way. In 2019, Krongold was named one of “40 under 40” by the Irvine Chamber of Commerce, in recognition of his accomplishments and service.

A graduate from the University of California San Diego with a Bachelor of Arts degree in Economics, Krongold and his wife are residents of Costa Mesa, Calif.

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About Spinnaker Investment Group, LLC:

Spinnaker Investment Group, LLC is a privately owned, boutique Investment Company that cares deeply about its clients and is committed to helping them realize their financial independence.   The company’s mission is to deliver the highest level of comprehensive wealth management service, helping customers achieve their financial goals and ultimately establish a safe, secure future.   With more than 30 years of combined investment experience, the Spinnaker team supports this mission by providing expert financial planning, wealth planning, retirement planning, asset management, securities and insurance.  For more information, visit www.SpinnInvest.com.

AI

How AI can Amp Up Thematic Investment Strategies

One of the persistent criticisms facing equity investors is their short-term view. They are characterized by adding or dropping stocks as the quarterly earnings roll in. Thematic investment, on the other hand, provides one counterpoint to earnings-focused stock picking.

Thematic investing  – a strategy designed to capitalize on broad economic or social changes – has seen increasing use in recent years. In 2016, thematic funds accounted for 30% of new ETFs introduced, on topics ranging from obesity, millennial consumption habits, and health and fitness.

Yet, asking questions about anything long term can be complex and often obscure. The trends and themes themselves that will reshape economies may be easy to identify, but translating them into quality investment vehicles is another matter. Using themes like clean energy, disruptive technologies, aging populations, or emerging markets to structure portfolios comes with its own unique challenges: successfully sifting genuine long-term trends from flash-in-the-pan fads – and critically, doing so early – is no easy task. Good analysis requires a massive amount of diverse data that, once structured in a way, it would facilitate thematic analysis.

A Knowledge Graph-based framework is uniquely positioned to provide both the data and analytic framework, with the inference capabilities necessary to provide actionable insights into large data sets.

A properly built Knowledge Graph describes the interrelations between real-world entities through a multidisciplinary, multidimensional correlated structure, comparing common themes and concepts across hundreds of millions of data assets over several years of correlated data embedded into the Knowledge Graph.
Such a framework can automatically calculate thousands of strategies for any investable concept an investor can think of – ranging from sustainability themes like clean energy to disruptive technologies like 5G or cloud computing.

A functional Knowledge Graph can rapidly build new, flexible strategies for thousands of concepts, deriving insights from millions of combined sources, and in ways that a typical analyst approach cannot match. Data sets can have global coverage – with strategies tailored to and applicable to multiple regions and countries – while also being highly specialized. They’re equally capable of taking in structured and unstructured data sets; everything from news reports, SEC filings, and financial or macroeconomic reports to court opinions and clinical trial data or patents. This multidimensional approach powers a dynamic point-in-time Knowledge Graph framework to produce exposure indices with precision.

Knowledge Graphs can further offer special insights in building a thematic investing portfolio through the way they look at concepts, both – quantitative (AAPL stock prices or its fundamental indicators for example) and qualitative. This offers not only the numbers behind what makes a wise investment, but also the context behind those numbers, which is especially critical when tracking themes.

Taking that capability a step further, it can also weigh data points based on the strength of their correlation to a given data set, or screen against undesirable exposure that might at first glance appear to be on theme. This scoring can be done at the entity level, offering sourced data on every point used in the process. When the process is complete, the final index that is produced has been weighed on multiple levels, accounting for variables such as market caps and liquidity for each company, and the aggregated exposures.

This type of analysis illustrates one of the key strengths of thematic investing: its concentration. Thematic investments are typically concentrated on a smaller selection of stocks but a Knowledge Graph framework offers the opportunity to build thematic strategies based on a larger constituents basket. This pushes market analysis away from being a purely reactive prospect; through identifying anticipated changes in the world, investors can take a forward-looking approach to capitalize on opportunities as they are forming, leading to potentially greater long-term growth opportunities.

Contrast that approach with mutual funds, which are typically concentrated on 40-80 stocks in a portfolio. The emphasis is generally on diversification, which manages risk, but is not necessarily the optimal way to achieve growth.

Some funds have already begun to turn to technology to do some of this critical analysis work. The AI-powered International Equity ATF (NYSEArca: AIIQ) has been doing just this since 2018. The fund runs on the Equbot Model, a proprietary algorithm that compares and analyzes data points and international companies on a daily basis to find and optimize portfolio exposures.

With a properly designed framework, a Knowledge Graph’s AI-based exposure engine can draw inferences to understand the dynamic market trends constantly driving returns while promoting concepts investors feel strongly about. Properly deployed, AI-based thematic investment strategies can instantly create new strategies or power existing ones – and in a fraction of the cost and time that traditional analysis could yield.

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Ruggero Gramatica is founder and CEO of Yewno, innovator of the Knowledge graph that generates actionable knowledge from today’s vast informationYewno has created an extensive multi-domain knowledge graph using proprietary AI algorithms, combined with a multi-disciplinary technology platform that extracts insights and delivers products and services tailored to specific industries. Yewno generates actionable knowledge from the ever-increasing amount of information available today.

As a pioneer in the Knowledge Economy and the innovator of the proprietary Yewno Knowledge Graph, an artificial intelligence-based framework powered by billions of disparate data sources, Yewno provides continuously evolving inferences that uncover unexpected insights for financial services, education, life sciences, government and beyond.  By delivering more meaningful intelligence, Yewno is revolutionizing how information is processed and understood, enabling users to more quickly analyze complex problems and improve decision-making. For more information, visit https://www.yewno.com/.

How Millennials Are Changing The Investment Game

Millennials are on the verge of becoming big players in the investment field.

Baby boomers, according to Forbes, are about to pass an estimated $30 trillion in assets down to millennials within the next few years. This generational transfer of wealth gives millennials many options on investing — starting with the investment firms they choose.

Understanding millennials’ mindset on investing and, just as importantly, learning their personality traits, preferences and dislikes, are crucial to any investment firm seeking to help them allocate their assets. For starters, millennials’ approach to investing is distinct to previous generations, and they handle money and choose the people who they entrust with that money very differently, too.

Those factors will have several ramifications for how assets are allocated in the next three, five, 10, 20, and 30 years. That’s why discovering how to connect with millennials so that they feel confident enough to trust you with their funds is critical.

How do millennials differ from previous generations, including their investment approach? Here are some revealing distinctions:

They’re more entrepreneurial. Whereas their parents, baby boomers, valued job stability and scaling the corporate ladder, millennials are more inclined to build their own businesses and take greater financial risks. They’re confident that even if they lose some money, they can earn it back — facts firms should consider as they approach this generation and brainstorm investment solutions.

They’re wary of Wall Street. After the Great Recession, many millennials were forced to take on student loans because their parents couldn’t afford college tuitions. So if they’re not entirely warm to the idea of Wall Street, what do millennials trust? Where do they see themselves putting the $30 trillion they’ll one day inherit? This group of investors favors commodities and options and they’re also more likely to put money in exchange-traded funds than their baby boomer parents.

They’re impassioned about helping the world. Millennials want to serve a greater purpose to humanity. This common trait has given rise to the concept of “impact investing” — intentionally putting money in companies or organizations that offer a financial return but also contribute funds toward creating a positive social or environmental impact.

They often don’t trust advisors. According to a study, 57 percent of millennials don’t trust advisors, believing they’re in it more for self-serving purposes than for their clients’ best interests. What they want is someone who wants to build a relationship with them and works toward gaining their trust.

So knowing how millennials and their investment thoughts are unique, how should investment firms navigate this young crowd of investors and best position themselves to reap the business of this generation, both today and in the coming years? 

Create trust and be transparent. Investment firms can build a foundation to better serve the millennial generation by fostering relationships, customizing your advice, and being clear about fees. For example, millennials, unlike baby boomers, prefer flat fees over commission-based pay models; that’s what they’re most familiar with through the advents of Uber and Netflix.

Explore technology. Millennials like technology but they also like simplicity and convenience. Look for ways to leverage technology to make experiences simpler, more self-serving, and more convenient for millennial users. Robo-advisors and digital investment content platforms and tools are just the start of the options available to explore. If they find it inconvenient or complicated to do business with you, they’ll do it with someone else.

Be a great communicator. While technology and self-service drive them, millennials also appreciate a human touch in the investment space, meaning a hybrid of tech and human would be the ideal mix for them. Find out how your millennial client likes to communicate — by text, email, messaging via a digital investment content platform, or on the phone. And when you are communicating, remember to be an advisor, not a dictator. Millennials appreciate insight, but they still like to be the one controlling decisions that impact them.

Use data to customize recommendations. Track clients’ online activity to gather data about them and use this in conjunction with their personal preferences to send them customized investment ideas, alerts, and recommended products.

It comes down to this: Millennials and baby boomers are as different as rotary phones and text messages, and newspapers and podcasts. And they’re just as varied in their viewpoints of success and allocation of material wealth.

Therefore, if advisors truly want to stay relevant in the investment game, they’ll have to work hard to build rapport with this generation and show good will to retain them as clients both currently and into the future.

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Gui Costin (www.guicostin.com), author of the No. 1 Bestseller Millennials Are Not Aliens, is an entrepreneur, and founder of Dakota, a company that sells and markets institutional investment strategies. Dakota is also the creator of two software products: Draft, a database that contains a highly curated group of qualified institutional investors; and Stage, a content platform built for institutional due diligence analysts where they can learn an in-depth amount about a variety of investment strategies without having to initially talk to someone. Dakota’s mission is to level the playing field for boutique investment managers so they can compete with bigger, more well-resourced investment firms.