Risk Management

229 Posts

Alpha Wounds: Short-Termism

Short-termism is a major alpha wound that hurts the performance of active investment managers. Short-termism leads to higher trading costs, makes it harder to properly evaluate the management of businesses, imposes time constraints that prevent investment strategies from reaching full flower, and increases bias. New research demonstrates this pressure is coming from clients rather than from investment managers themselves. Read more

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Investment Opportunities Flow from Water Initiatives

Environmental changes, population growth, contamination, and aging infrastructure are all contributing to water shortages. Solving such problems will require input from the for-profit and not-for-profit sectors. By targeting water initiatives, investors may find secular growth in municipal bonds, public and private company shareholdings, and exchange-traded funds. Read more

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