Straight from the Rosenthal Capital Management trading desk, Head Trader and Principal, Bret Rosenthal, explains why individual investors need to know about investment algorithms.

When investment algorithms constitute the majority of trades executed by institutions what happens to the individual investor?

In prior decades institutional capital provided edge in the marketplace. Using their wealth and influence institutions were able to access information that remained unavailable to individual investors.

While new regulations changed how institutions access information they haven’t changed the fact that individual investors still lack the ability to access the same information at the same time.

To prevent individual investors from being hurt by the institutional footprint there needs to be something that levels the playing field.

It’s that quest that drives everything that I (and the whole Rosenthal Capital Management crew) do every day. Someone has to fill the gap between institutions and individuals. We’ve decided to lead the way.

Collectively at Rosenthal Capital we have a lot of experience in the stock market industry:

Over thirty years working as a group at major wirehouses in Manhattan where together we ran the largest equity business for high-net worth individuals. We captured upside through a huge amount of fundamental research and meetings with the CEOs of companies in which we were interested in investing. Then, we passed along that informational edge to the individual investors with whom we worked.

In 2005 we moved down to Palm Beach, FL, where we managed our own private capital plus that of a select high-net worth clientele. Since then, in response to how events of 2008 devastated investors’ portfolios (and the subsequent manipulative response by central banks) we’ve focused on portfolio rehabilitation via investment algorithms. This represents a part of our effort to fill the gap between institutions and individuals.

The podcast below shares some of what we’ve learned — and what most financial advisors don’t seem to have yet picked up on. A shortlist of covered topics includes:

  • How today’s markets submit to the rule of algorithms
  • Specific ways an individual investor feels the impact of algorithms
  • Outcomes of central bank intervention and manipulation

Enjoy the podcast, then read our expanded analysis in this exclusive investment algorithm post published by Seek Alpha….

How Institutions Use Investment Algorithms

by Bret Rosenthal

Clearly comprehending investment algorithms is critical for the individual investor. Straight from the Rosenthal Capital Management trading desk, Head Trader and Principal, Bret Rosenthal, explains why.

Have questions about what you hear on the podcast or read in the investment algorithm article? We love answering follow ups: Call or email us.

The Rosenthal Capital Management blog explores how algorithmic trading strategies help individual investors get better returns.

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