Investors beware of managers that use a great deal of industry lingo such as “hedging instruments, yield enhancement methods, risk adjusted rates of return, derivative strategies, etc.”

I find that too many managers use industry lingo to confuse clients, make it sound like they are doing something special for their clients, and ultimately those managers use industry speak to justify charging a higher management fee.

Those fancy words can cost the investor a great deal over the long haul.

Remember that simplistic/consistent portfolio management beats “sophisticated/complex” strategies a lot more often than not over long-term periods, especially when management fees are taking into account.