Wisdom Tree Investments Inc. (WSDT.PK)

All Comments on WSDT.PK

  • commenter
    Vincenzo Di
    Carmine
    Dec 13 10:39 AM
    Interview: Luciano Siracusano, Director of Research for ETF Firm WisdomTree Asset Management [view article]
    Hi Luciano,

    Thanks for having a look at our questions.

    1) Do you plan to issue further fundemantally indexed ETFs based on more sophisticated criteria than the sole dividend ? I have in mind an ETF based on Magic Formula Investing popularized by Joel Greenblatt or on similar formula which take into account ROIC, EBITDA/EV, B/V etc...

    2) Fundamentally indexed ETF are getting huge increases in assets under management. Do you think that in a few years they will reach such a huge amount of assets under management that it will be more difficult for value/contrarian investors to pick up bargains since once a valuation threshold is reached there will be "automatic" buyers with lot of capital available to buy unloved stocks ?

    Regards,
    Vincent Di Carmine     Reply
  • commenter
    Steve Saker
    Dec 13 09:10 AM
    WisdomTree: Riding the ETF Wave [view article]
    I am very late to the party in buying WSDT having bought in over the past few days. However, I bought several of their funds in July and have been delighted with the performance in this (albeit short) period. I can only assume that the performance, if it continues even on a relative basis, will drive AUM growth poerfully higher. Little eles will be more important to the price of WSDT - unless Michael Steinhardt unloads! Reply
  • commenter
    Steve Saker
    Dec 13 08:56 AM
    Interview: Luciano Siracusano, Director of Research for ETF Firm WisdomTree Asset Management [view article]
    I have invested in several of your funds together with shares of WSDT. Plainly I am a believer. My question is philosophical: do you see fundamentally weighted ETFs as being a hybrid of active management and pure indexing? In the same spirit, as you seek to capitalize on perceived pricing inefficiencies, especially in smaller "pockets" won't you (together with others following the same concept) "become" the market? Reply
  • commenter
    Dan Silagi
    Dec 13 08:54 AM
    WisdomTree: Riding the ETF Wave [view article]
    Nothing wrong with investing in Wisdomtree's funds. My family and I intend to invest several hundred thousand, perhaps considerably more, into WSDT's funds, once they achieve a 1-year track record, assuming the funds at least perform in-line with the overall market.

    But to value WSDT's current $1+ billion in assets (after 6 months) they way one would value, say, Procter & Gamble (in which I own far, far more stock than I do in WSDT) is missing the point. ALL growth stocks are ridiculously overvalued in their early stages, e.g., Google. The trick here is to determine which companies will remain growth companies three years from now, and which are selling "vaporware," of which there were many in the heady markets of 1998, 1985, 1967, and 1961, just to name four off the top of my head.

    I suspect WSDT's recent growth spurt is due to its employees exercising stock options at year-end. Think they'd do it if they weren't optimistic about the company's future?

    Also, consider the huge bonuses being paid to Wall Street employees this year. Most of these bonuses will be handed out in January. Some of that money will find its way into WSDT's funds. In addition, most institutions require a 3-year track record, meaning you need to wait 2 1/2 years before WSDT's funds meet that hurdle. I'm a (relatively) patient man.

    I have read much of Jeremy Seigel's material, and as a University of Chicago MBA, who was schooled in the efficient market theory, am intellectually satisfied with his take on market inefficiencies, and with WSDT's prospects for exploiting them.

    Of course, I could be dead wrong, which is why we own 6800 shares of WSDT, not 68,000 or 680,000. (Yes, I would have bought more if I have had access to tomorrow's paper today, but I don't.) Hence, I follow the cardinal rule of the efficient markets hypothesis, which is to diversify.     Reply
  • commenter
    Yehuda
    Fruchter
    Dec 12 08:50 PM
    My Website
    WisdomTree: Riding the ETF Wave [view article]
    Quick facts: Michael Steinhardt invested in WSDT at $0.16 per share in late 2004, at a post-market valuation of about $14 million. He is now up 4,800% in less than two years, turning a $9 million investment into over $450 million. FYI, Jeremy Siegel is in at $1.30.

    You can get the press release here: www.wisdomtreeinvestme...-$9-Million-Financing....

    Without getting into the seemingly insane valuation, just looking at the above prices, I venture to guess that anyone who is buying now is a bit late to this game. But congrats to those who bought lower and to the insiders. This is an unbelievable example of how capitalism magically creates massive wealth out of thin air.     Reply
  • commenter
    Slappy White
    Dec 12 05:06 PM
    WisdomTree: Riding the ETF Wave [view article]
    Overhead is a valid point in WSDT's favor. However, I think it's besides the point.

    WSDT might or might not get to $160 Billion in assets. However, right now, it is at $1 Billion. Even assuming the full expense ratio is 0.5% goes to the shareholders (which would be silly), that would be $5 Million relative to a market cap of $700 Million.

    By comparison, Mr. Suria points out that Amvescap's purchase of Powershares could, if targets are hit, be worth $730 Million. That is on 6X the assets under management relative to WSDT.

    I have no idea whether WSDT will maintain its rate of growth. However, I am happy to let others find out, one way or the other. I think there is an irony in a company whose share price is driven solely by speculation hawking a conservative, passive investment approach based on dividends and earnings. I'm going to venture a guess and say that I don't think WSDT will be added to any of WSDT's funds anytime soon.

    I'm also sorry for people who bought at $9 a few days ago only to lose 15%. I have the sneaking suspicion that they might ultimately have been happier putting their money in WSDT's DTD fund rather than WSDT itself. For disclosure's sake, I hold shares of DTD and have no interest in WSDT.     Reply
  • commenter
    Dan Silagi
    Dec 12 04:29 PM
    WisdomTree: Riding the ETF Wave [view article]
    Comparing Janus to Wisdomtree is comparing apples to oranges. Janus has a market cap of $4 billion, 200 million shares outstanding, and about $160 billion under management. While they were very hot years ago, recently, their track record has been average -- in other words, they perform with the markets, not better. (Most mutual funds don't beat the market averages, and for that matter, neither do most hedge funds.)

    The interesting thing about Janus is they only earned $100 million, or about 0.06% (0.0006) on each dollar invested. This, in spite of the fact that they charge 1% or so as a management fee. This is in part due to the legions of analysts and others they have working there.

    Wisdomtree, and other ETF's, have computers do most of the work. Their overhead (and fees) will be much, much lower than Janus and its competitors. If Wisdomtree ever managed $160 billion in assets, you could be sure that they'll earn orders of magnitude more than $100 million.     Reply
  • commenter
    Geoff
    Considine
    Dec 12 12:14 PM
    My Website
    Interview: Luciano Siracusano, Director of Research for ETF Firm WisdomTree Asset Management [view article]
    Mr. Siracusano:

    Thanks for the opportunity to pose a question or two. Could you discuss or point me to discussions of the historical performance of the fundamentally-based weighting for your funds? Further, can you discuss why it is reasonable to expect fundamentally weighted indices to out-perform in the future?

    Regards,

    Geoff Considine     Reply
  • commenter
    SeekingAlpha
    Editors
    Dec 12 07:18 AM
    My Website
    Interview: Luciano Siracusano, Director of Research for ETF Firm WisdomTree Asset Management [view article]
    Luciano,

    Thanks for doing this Q&A.

    I'm wondering what your thoughts are on this recent Seeking Alpha article by Asif Suria, which looks at WisdomTree itself from an investor's perspective:

    WisdomTree: Riding the ETF Wave
    financial.seekingalpha...     Reply
  • commenter
    David
    Jackson
    Dec 12 01:40 AM
    My Website
    Interview: Luciano Siracusano, Director of Research for ETF Firm WisdomTree Asset Management [view article]
    Two more quick questions:

    1. We know that dividend-paying stocks have a good track record in the US, but how have foreign dividend paying stocks performed relative to foreign non-dividend-paying stocks?

    2. Have you compared the performance of WisdomTree's indexes to the hedge fund indexes? You could calculate what actual performance would look like after fees assuming hedge fund fees of 2% of assets and a 20% performance fee, and WisdomTree fees per the ETFs. It would be interesting to see if on average buying WisdomTree ETFs is a better value proposition than investing in hedge funds!     Reply
  • commenter
    S W
    Dec 11 10:25 PM
    Interview: Luciano Siracusano, Director of Research for ETF Firm WisdomTree Asset Management [view article]
    Luciano,

    1) What are current AUM?
    2) What is the current fee structure?
    3) Why has such an impressive management team chosen to list on the credibility-challenged Pink Sheets?
    4) When will you start filing financials? How are potential investors supposed to analyze WSDT in the meantime?

    Thank you very much, your response is appreciated.     Reply
  • commenter
    Roger
    Nusbaum
    Dec 11 09:04 PM
    My Website
    Interview: Luciano Siracusano, Director of Research for ETF Firm WisdomTree Asset Management [view article]
    Another one if that is OK. I realize WisdomTree makes its own indices and I am under the impression that the company is exploring, one way or another, fixed income products. I had a lot of feedback from people wanting foreign bond ETFs. I know MSCI/Barra has a lot of indices of foreign soverign debt (single country and regional) and I think this woud be a great tool.

    I am fairly index agnostic relative to wanting the exposure for my clients. <strong>Any chance WisdomTree could get involved in this way?</strong> The interest and so I think the demand is very big.     Reply
  • commenter
    David
    Jackson
    Dec 11 05:13 PM
    My Website
    Interview: Luciano Siracusano, Director of Research for ETF Firm WisdomTree Asset Management [view article]
    I bought these funds about 3 months ago: DLS, DNH, DBN, DKA, DRF, DBU and WSDT and via smith barney, about 300k. I am tring to find out when divs are paid.

    thanks     Reply
  • commenter
    huangjin
    Dec 11 04:20 PM
    Interview: Luciano Siracusano, Director of Research for ETF Firm WisdomTree Asset Management [view article]
    Luciano,

    I have two questions:

    1) Is there a market segment that you believe the Wisdom Tree strategy is particularly suited for?

    2) PowerShares has introduced the FSTE RAFI Sector funds which also use a fundamental strategy. What do think of them?

    Thank you.     Reply
  • commenter
    Roger
    Nusbaum
    Dec 11 04:07 PM
    My Website
    Interview: Luciano Siracusano, Director of Research for ETF Firm WisdomTree Asset Management [view article]
    Luciano,

    Great to meet you last week. Here is one I meant to ask.

    In looking at the top ten of DEB and DEW, I'm not sure how Total (TOT) can be number 4 in DEB but not be in the top ten for DEW (as of 12/11). Another example Lloyd's has a different rank in each of the two. I get how the weightings can be different percentages but not how the order can be different.

    Thank you!     Reply
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