SLCG Economic Consulting, founded in 2000, provides finance, economics and investment management consulting and expert witnesses to law firms, banks, brokerage firms and individuals involved in complex litigation. Our experts, mainly PhD and MA level professionals with academic, industry and government experience have testified in state and federal court and in various arbitration forums.
Our Services
Our Research
Our experts have published extensively in peer-reviewed journals. Pre-publication versions of these papers plus other working papers are available below.
Rating Brokerage Firms by Their Complaint Histories Rather Than by Their Brokers' Histories
In our previous research, we ranked brokerage firms based on the proportion of their brokers on December 31, 2015 who had been associated with at least one resolved customer complaint. That approach assigns a higher ranking to a firm if a larger proportion of its current brokers have one or more resolved customer complaint in their career, regardless whether the complaints occurred at their current employer or at a prior employer.
Our new research ranks brokerage firms based on the frequency of customer complaints over conduct at each firm, including both resolved and pending. That is, we rank firms based on their history rather than on their current brokers' histories.
Diversifying a Concentrated Stock Position in 2023
Twenty years ago, we evaluated brokerage firms' recommendation that investors
should diversify a concentrated stock position by buying additional stocks on margin[McCann and Luo, 2003]
Twenty years later, some brokers and advisors continue to recklessly recommend
that their clients borrow against concentrated stock positions and purchase additional
stocks to diversify. In this note, we use recent stock market returns to update our previous work which used data from the 1990s. We also extend the analysis to cover a larger universe of stocks and employ more sophisticated simulations. Our updates and enhancements show that this "hold, borrow, and buy some more" strategy remains inconsistent with basic principles of prudent investment management; leveraged diversification perversely increases risk and or lowers expected returns.
Recent Results
We have a track record of success over 20 years long. Read the awards, decisions, and orders we have helped clients achieve.
SLCG in the News
Our experts are often featured in prominent news outlets. Read how we are influencing the world of finance and securities litigation.
High-risk alts burn client in $1.2 million arbitration
Bruce Kelly's "High-risk alts burn client in $1.2 million arbitration" reports on a $1.2 million FINRA award against Concourse Financial Group Securities for its recommending and misrepresenting of high-risk private, illiquid and alternative investments and equity indexed annuities. The article quotes Dr. McCann, who testified in the case, describing the investments as "the worst or just about the worst portfolio I have ever seen."
The Big Questions Hanging Over a Blackstone Fund
The New York Times' "The Big Questions Hanging Over a Blackstone Fund" details concerns over the valuation of Blackstone's real estate fund in its impressive performance while rivals struggle with high interest rates and a flagging property market. The article raises questions about Blackstone's independent review of its third-party appraisal values, differing from many major firms that defer entirely to third-party appraisers. The approach has split Wall Street, and the article quotes Dr. McCann on his reservations towards Blackstone's independent review process.
