Authors

A. Michael Lipper, CFA, is president of Lipper Advisory Services, Inc., a firm providing money management services for wealthy families, retirement plans and charitable organizations. A former president of the New York Society of Security Analysts, he created the Lipper Growth Fund Index, the first of today’s global array of Lipper Indexes, averages and performance analyses for mutual funds. After selling his company to Reuters in 1998, Lipper has focused his energy on managing the investments of his clients and his family. His first book, Money Wise: How to Create, Grow and Preserve Your Wealth, was published by St. Martin's Press. Lipper’s unique perspectives on world markets and their implications have been posted weekly on his blog since August, 2008.
Abby Farson Pratt is an assistant editor at CFA Institute. Previously, she worked at the Denver Post and at the University of North Carolina Press. Pratt earned the Claritas™ Investment Certificate and holds a BA in journalism and English from the University of North Carolina at Chapel Hill.
Alissa Amico is the Managing Director of GOVERN, Economic and Corporate Governance Center, which works with public and corporate leaders in advancing corporate governance and economic governance in the Middle East and North Africa and other emerging markets through research. Until 2015, Amico was responsible for overseeing OECD’s work on financial markets and corporate governance in the Middle East and North Africa. She joined the OECD in 2005 to establish a regional program on private sector development in the MENA region with the relevant Ministers in the area. Amico holds a Bachelor’s degree in Business Administration from the Schulich School of Business, York University, and a Master’s degree in Political Economy with a specialization in the Middle East from the London School of Economics and Political Science. She is a member of the French Institute of Directors’ International Commission. Amico was named one of the Top 100 Leaders in Europe and the Middle East by the Centre for Sustainability and Excellence in 2011, and was recognized by Columbia Law School as the Rising Star of Corporate Governance in 2014.

Is Privatization in the Future of GCC Countries?

Privatization appears to be slowly rearing its head in the Middle East again, mostly in the economic plans of the GCC countries and in Egypt. To be clear, this is not because attitudes have changed. Divestment from state-owned enterprises is seen as a last resort in the Gulf countries in light of the fiscal tightening. Read more

1 Comment
Alon Bochman, CFA, is managing partner of Stepwise Capital, a New York‐based investment partnership that combines value investing principles with statistical methods to create a portfolio of differentiated strategies that seek to systematically exploit structural market inefficiencies. Previously, he spent two years managing an equity portfolio for SC Fundamental. Bochman began his career as a programmer by co-founding a social networking software firm eventually sold to Thomson-Reuters. He holds an MBA from Columbia Business School and a BA from the University at Albany.
Andrew Dassori is the Chief Investment Officer of Wavelength Capital Management, an independent alternative investment firm based in New York. Prior to founding Wavelength, Dassori was a portfolio manager at Credit Suisse focused on global macro investment strategies. While there he was also a member of the firm’s Global Citizens Program through which he worked at Equity Bank in Nairobi where he was responsible for a team building default risk models for microfinance loans, and represented the bank in meetings with the IMF, World Bank and other economic policy institutions. Dassori received a BSc from the London School of Economics.
Andrew Perrins is CEO and co-founder of Savvy Investor, a professional network for institutional investors, which curates pension and investment research and white papers from around the web. After qualifying as an Actuary in 1987, Perrins worked as Director of Global Asset Allocation for Abbey Life and Chase Manhattan Bank.

The “Relatively” Easy Way to Forecast Long-Term Returns

The "Relatively" Easy Way to Forecast Long-Term Returns

Why bother with long-term return expectations? For asset owners or asset managers compiling a strategic asset allocation, long-term forecasts are relevant and necessary. When combined with estimates for risk and correlation, these forecasts allow investors to fine-tune their long-term benchmarks and consider trade-offs between asset classes to enhance the implied risk and return profile of the fund. Read more

7 Comments
Anjali Pradhan, CFA, began her career in asset management working for PIMCO, Goldman Sachs, and HSBC. She has held various positions, first in portfolio management and then transitioning to marketing and business development. In addition, Pradhan is co-founder of a consultancy group called Dahlia Capital Advisory that works to match impact investors with innovative social enterprises, improve financial literacy for all types of investors, and helps in marketing SRI funds to investors. Pradhan holds a Bachelor of Commerce degree in Finance from the John Molson School of Business at Concordia University in Montreal.
April J. Rudin, Founder and President of The Rudin Group, is an expert at the intersection of wealth marketing, next gen, and digital/social platforms. She regularly advises financial institutions on strategies and tactics to attract and engage with wealthy clients-multi-generationally. April is a consultant to global financial services firms in North America, Asia, and the Middle East, and she is a frequent contributor to Huffington Post, Family Wealth Report, Fundfire and others on trends, commentary and insight to wealth marketing.

How Financial Advisers Can Appeal to NextGens

How Financial Advisers Can Appeal to NextGens

Financial advisers who fail to understand and act on the behaviors and demands of young high-net-worth individuals (HNWIs) may be unprepared for the long-term shifts in client attitudes that are on the horizon. To help financial advisers plan for this shift, Enterprising Investor interviewed David Wilson, of Capgemini Financial Services and founder of thewealthconsultant.com, for his personal views on how advisers can appeal to NextGens. Read more

1 Comment
Arnold T. Davis, CFA, is an executive at Accenture, Chicago.
Bob Dannhauser, CFA, is head of capital markets policy at CFA Institute. He oversees development and promotion of positions, policies, and standards to ensure integrity of global capital markets. Dannhauser also oversees the external relations and communications functions for advocacy and standards of professional conduct activities.
Brian Langenberg, CFA, is the founder at award-winning industry sector research firm Langenberg & Company that provides research services and subscription products to institutional investors and corporate executives. Reports and subscriptions are available at Langenberg-llc.com
Bruce Grantier, CFA, is founder of InvestorLit.com.
Bud Haslett, CFA, is executive director of the Research Foundation of CFA Institute and head of risk management and derivatives. Previously, he served as director of option analytics at Miller Tabak + Co., LLC, and as CEO of Miller Tabak Capital Management. Haslett also spent two decades on the options trading floor, where he managed portfolios of stocks and options. He also served as a board member of the New York Society of Security Analysts, chairman of the Board of Regents for the Financial Analysts Seminar, and president of the CFA Society of Philadelphia. Haslett was an active volunteer for CFA Institute, having served in a variety of capacities, including as a CFA exam grader and member of the Council of Examiners. He has also taught coursework on options at New York University, Johns Hopkins University, and Rutgers. Haslett is the founding chairman of the derivatives committee for the New York Society of Security Analysts and is a member of the Institutional Investor Advisory Committee for the Chicago Board Options Exchange. He has conducted option presentations and workshops at more than 50 CFA Institute societies. Haslett holds master’s degrees from the University of Pennsylvania and Drexel University, and he has earned the Financial Risk Manager designation. Topical Expertise: Derivatives · Risk Management

CFA Institute

2 Posts

Roundup: India Investment Conference — The Road Ahead for India and Emerging Economies

India Investment Conference 2014

A collection of highlights from Fourth Annual India Investment Conference. Different sessions at the event explored different views on the tapering of quantitative easing in the United States, specified challenges and key factors in sustaining economic growth in India, predicted future trends of the rupee, highlighted how the global energy landscape is affecting local oil prices, and issued a wake-up call for practitioners regarding ethical issues facing finance industry. Read more

Leave a Comment
Charles D. Ellis, CFA, is chairman of the Whitehead Institute, Cambridge, Massachusetts.
Charlie Henneman, CFA, is head of educational events and programs at CFA Institute. Previously, he was the director of structuring and operations at Indosuez Capital, the CDO (collateralized debt obligation) management group of Credit Agricole Indosuez. Henneman previously held several positions in credit and structured finance, including managing director at advisory boutique AGS Financial, senior vice president and chief credit officer in the new products and ventures group at Enhance Financial Services Group, Inc., and director in the new assets group on Standard & Poor's structured finance ratings team. He holds a BA in political science from the University of Rochester and an MBA in finance from the New York University Stern School of Business.

Cheryl Evans

1 Post
Cheryl Evans, JD, LLM, is director of conferences in Educational Events and Programs at CFA Institute. She has also served on the Future of Finance team and was a senior investigator in the Professional Conduct Program at CFA Institute.
Chetan G. Shah, CFA, is senior portfolio manager at Religare Invesco Asset Management Company, Mumbai, India.

Book Review: Advanced Equity Derivatives

Advanced Equity Derivatives: Volatility and Correlation

Sébastien Bossu reviews important concepts and recent developments in option pricing and modeling, including the latest generation of equity derivatives: volatility and correlation derivatives. Readers should have some familiarity with basic equity derivatives pricing and advanced mathematics because this book references the Black–Scholes model and other formulas for exotics. Read more

Leave a Comment

CK Lee, CFA

2 Posts
Chae Kwang Lee, CFA, was director of industry relations, Asia Pacific, at CFA Institute. He has also worked as the head of research and strategy at Korea Investment and Securities, where he did strategy marketing for institutional investors and arranged corporate IR for overseas clients. Previously, Lee worked as a chief investment officer at both KDB Asset Management Co., Ltd. and Eugene Asset Management Co., Ltd. He holds a master’s of economics degree with a concentration in econometrics and labor economics from Seoul National University, Korea.
Colin McLean, FSIP, is founder and CEO at SVM Asset Management, an independent Edinburgh-based fund management group. He is a member of CFA Institute and was elected to the Board of Governors in 2012. McLean is a fellow of the Institute and Faculty of Actuaries and a chartered fellow of the Chartered Institute for Securities & Investment. In 2012, McLean was appointed an honorary professor at Heriot-Watt University, lecturing in behavioral finance. He is a regular contributor to financial publications and has been a guest on Bloomberg TV & Radio, CNBC, BBC TV and Radio. McLean is also a frequent conference speaker on investment, hedge funds and behavioral finance.
Craig Sullivan, CFA, is an investment analyst at Franklin Street Partners, where he is responsible for the portfolio management of the core fixed-income and opportunistic credit strategies. Previously, he worked in portfolio management at Merrill Lynch in the private client group. Sullivan holds the Chartered Alternative Investment Analyst (CAIA) designation and is a graduate of North Carolina State University.

The “Unknown Unknowns” of the Contingent Convertible Market

The "Unknown Unknowns" of the Contingent Convertible Market

The financial crisis of 2008–2009 highlighted weaknesses in the way banks calculated both their capital ratios and risk-weighted assets (RWAs). Prior to the crisis, banks held too little capital on their balance sheets and did not hold enough liquid funds. These shortcomings led the banks to have large write-downs during the crisis, which in many cases required state intervention to allow the banks to remain solvent. Read more

1 Comment
Daniel Kim is founder and chief investment officer at Blackcrane Capital, an investment management firm based in Bellevue, Washington. Previously, he was a portfolio manager and partner at Mastholm Asset Management.
David L. Allison, CFA, CIPM, is vice president and founding partner at Allison Investment Management, LLC. He has formal training in investment analysis, portfolio management, and investment performance measuring techniques. Allison has extensive experience managing investment portfolios for high net-worth investors. He is an active member of CFA Institute, the CIPM Association, CFA North Carolina, and the CFA Society of South Carolina, where he is a former president and currently serves on the board of directors. Allison also serves on the Coastal Carolina University Wall College of Business Finance Advisory Board. He holds of degree in finance from the University of North Carolina at Wilmington.
David Larrabee, CFA, is director of Member and Corporate Products at CFA Institute and serves as the subject matter expert in portfolio management and equity investments. Previously, he spent two decades in the asset management industry as a portfolio manager and analyst. He holds a BA in economics from Colgate University and an MBA in finance from Fordham University. Topical Expertise: Equity Investments · Portfolio Management
David Schawel, CFA, is a portfolio manager for New River Investments in the Raleigh/Durham, North Carolina area. Previously, he managed a $2 billion fixed income portfolio for Square 1 Financial, which he joined in 2008.

Delme Thompson

2 Posts
Dennis McLeavey, CFA, was head of regulator and program recognition, as well as a content director for quantitative methods at CFA Institute. He is professor emeritus of finance and management science at the University of Rhode Island. McLeavey has also served as head of education, EMEA, at CFA Institute and as head of curriculum development for the CFA Program. He is coauthor of Quantitative Investment Analysis, a Wiley text in the CFA Institute Investment Series. He also coauthored Global Investments, Production Planning and Inventory Control, and Operations Research for Management Decisions, and is coeditor of Managing Investor Portfolios. His research has been published in Management Science, the Journal of Operations Research, and the Journal of Portfolio Management, among others. McLeavey has taught at the University of Western Ontario and the University of Rhode Island. He has served as chairperson of the CFA Institute Retirement Investment Policy Committee and as a New York Stock Exchange arbitrator. In 2008, he initiated the CFA Institute Take 15 series of webcasts. He serves on the Fund Advisory Board for the Global Perspectives Fund at the University of North Carolina Kenan-Flegler Business School, and he oversees the Ram Fund at the University of Rhode Island. McLeavey holds a bachelor’s degree in economics from the University of Western Ontario and a doctorate in production management and industrial engineering, with a minor in mathematics, from Indiana University.

Detetecting Earnings Manipulation and Fraud: A Light Tutorial on Probit Analysis

Detetecting Earnings Manipulation and Fraud: A Light Tutorial on Probit Analysis

Lies, damned lies, and earnings management. If 20% of firms misrepresent economic reality through earnings management, analysts and portfolio managers must protect themselves by knowing how, why, and when individuals lie. Quantitative methods with forensic formulas, such as the Beneish model, offer part of the necessary skills to distinguish earnings manipulation from earnings management. Read more

9 Comments

Desi Allevato

3 Posts
Desi Allevato is a product development manager at CFA Institute. Previously she worked at Silverchair Science and Communications, the Virginia Center for Digital History, and the Virginia Historical Society. She earned the Claritas™ Investment Certificate and holds a BA in history and international studies from American University and an MA in modern European history from the University of Virginia.
Diego Espinosa runs Sistema Research, a consulting firm that applies a complex systems approach to strategic uncertainty. He also teaches security analysis at the University of San Diego, and he authored a chapter for a book on the Fed’s role in the 2008 crisis. Espinosa formerly managed a hedge fund, was a portfolio manager of a global equity fund at Scudder, ran European research for Sanford Bernstein, and was a number one–ranked analyst at Morgan Stanley. He started his career at the Boston Consulting Group. Espinosa holds an MBA from the Wharton School at the University of Pennsylvania.

Donald Ingham

1 Post
Donald Ingham is a director at Tenth Avenue Holdings (TAH) and a portfolio manager of the TAH Core Fund. He holds a BBA in accounting and management information systems from the University of Georgia, an MBA from Columbia University, and a master’s degree in professional accounting from the University of Texas at Austin.

Warren Buffett: Activist Investor?

Warren Buffett: Activist Investor?

Much like today’s most notorious activist investors, Warren Buffett made a name for himself by identifying market inefficiencies that could be exploited for the benefit of his investors and public shareholders. But unlike the corporate raiders of the 1980s, Buffett wasn’t out to tear companies down. In fact, he wanted to help build them up.
Read more

2 Comments
Dorothy C. Kelly, CFA, is director of training and outreach for the CFA Institute Professional Conduct Program.

The Facebook IPO: Ethical Violations or Not?

More than a year has passed since the initial public offering of Facebook. The hype that preceded the US$105 billion IPO was matched only by the media frenzy that followed the stock’s botched trading debut and immediate price decline. Headlines alleged conspiracy, insider trading, and selective disclosure. We’re asking readers to participate in an online survey and tell us whether they think there were ethical violations. Read more

Leave a Comment
Dougal Williams, CFA, is chief investment officer of Vista Capital Partners in Portland, Oregon. He attended the University of Oregon, graduating Phi Beta Kappa, with honors, with a B.A. in Economics and Spanish. Williams is a former board president and current member of CFA Society of Portland.
Druce Vertes, CFA, is the founder of StreetEYE, a social news aggregator for financial market news. Previously, he worked as an analyst, consultant, and IT manager at several major sell-side firms and hedge funds.
Dr. E. Ted Prince, Founder and CEO of the Perth Leadership Institute, has also been CEO of several other companies, both public and private. He is the author of two books: “The Three Financial Styles of Very Successful Leaders” (McGraw-Hill, 2005) and “Business Personality and Leadership Success”, Amazon Kindle 2011, as well as numerous other publications. He is a frequent speaker at industry conferences. He works with large corporations globally on leadership development programs, and he coaches senior executives and teams in the area of financial leadership and innovation. He has held the position of Visiting Professor at the University of Florida in its Graduate Business School and also at the Shanghai University of Finance and Economics in China.

Ed Bace, CFA

6 Posts
Ed Bace, CFA, was previously head of education for the Europe, Middle East, and Africa (EMEA) region at CFA Institute. He has also served as a professor of finance at BPP Business School. Bace has more than 20 years of experience in international finance, including roles with the European Bank for Reconstruction and Development, Lehman Brothers, and Standard & Poor’s. He holds an MBA in finance and international business from New York University.
Eric Friedman, CFA, FSA, EA, is the author of “Reinventing Philanthropy: A Framework for More Effective Giving,” and volunteers with The Life You Can Save, an organization dedicated to making it easier for donors to find effective charities. Friedman is an investment consultant and actuary in Chicago, Illinois. He graduated from Stanford University with bachelor’s degrees in Mathematics and Economics, and earned a Master of Science in Actuarial Science from the University of Iowa.
Eric Petroff, CFA, is the founder of Petroff Institutional. He has more than a decade of institutional consulting experience across virtually all client types, having served as a senior consultant and shareholder at Hammond Associates and as a director of research and chief strategist at Wurts & Associates. In addition to his CFA, Eric holds the Financial Risk Manager (FRM) and Chartered Alternative Investment Analyst (CAIA) designations, and has an MBA with an emphasis in finance from Webster University.
Filip Mardjokic, CFA, works at an investment fund in New York where he is member of the strategy and analytics team and sits on the economics and equity committees. He holds a BA in economics and political science from New York University.
Florian Schneider, CFA is Head of Product Research & Development within the Strategic Product & Marketing department at Pioneer Investments. Schneider oversees the Luxembourg-domiciled product range, from Idea Generation and Innovation, to Product Development and Management. Prior to this role, he worked as Product Manager for Activest from 2005 until 2008, and became responsible for Product Research when Activest was taken over by Pioneer Invesments. Schneider is a graduate of the University of Applied Sciences Deggendorf (2005) in Business Administration - specialising in Financial Services.
Gary C. Sanger is a distinguished professor of finance at Louisiana State University. He received a BSIM degree with honors in economics from Purdue University in 1973 and a Ph.D. in finance from Purdue University in 1980. Dr. Sanger also holds the Chartered Financial Analyst (CFA) designation. Prior to joining LSU, he was assistant professor of finance at Ohio State University. At LSU, Dr. Sanger has served as associate dean for academic programs and chair of the department of finance. His research has been published in leading academic journals, including the Journal of Finance, the Journal of Financial and Quantitative Analysis, the Review of Financial Studies, and the Financial Analysts Journal. Dr. Sanger is a member of the American Finance Association, the Financial Management Association, the Society for Financial Studies, and CFA Institute. He is a member and past director of the Southern Finance Association.
James Grant is the editor of Grant’s Interest Rate Observer, which he founded in 1983.
Gregg S. Fisher, CFA, is chief investment officer of Gerstein Fisher, an independent investment management and advisory firm that he founded in 1993. Gerstein Fisher’s investment strategies are focused on what has been proven to have a meaningful impact on investor returns: global diversification, smart portfolio structure, proactive tax management, investor behavior, and risk management. Through the Gerstein Fisher Research Center, which he established in 2009, he has partnered with leading academics in the areas of finance, risk engineering and economics to conduct research that has immediate, real-world applicability to the practice of investing. Fisher is a Certified Financial Planner. To read more about him, visit www.gersteinfisher.com.

Active Share Is a Fuzzy Number

Active share’s popularity has largely been driven by two factors. First, it appears simple and intuitive; active share is the proportion of a portfolio’s holdings that is different from the benchmark for that portfolio. Second, the investment industry has become fascinated by the debate over the link between the level of active share and outperformance of the benchmark. Read more

1 Comment
Gustavo Teruel is a partner at Exxacon, a Spanish-Chilean company that manages investments in real assets for institutions and high net worth individuals since 1998. Apart from earning the CFA Charter, Mr. Teruel completed a M.Sc. in Civil Engineering at the University of Granada and an MBA at IE Business School.
Hamlin Lovell, CFA, is Head of Research at Tomlinsonresearch.com, which provides outsourced hedge fund research to wealth managers. He is Contributing Editor for The Hedge Fund Journal. Until 2013, he was a portfolio manager at IMQubator, and prior to that he worked at currency manager Millennium Global Investments as co-manager of a fund of funds. Lovell has also written blog posts for the AllAboutAlpha thought forum. Lovell also holds the CAIA (Chartered Alternative Investment Analyst), FRM (Financial Risk Manager) and IMC (Investment Management Certificate) designations. He holds an economics degree from the University of Leicester.
Hamlin Lovell, CFA, is Contributing Editor for The Hedge Fund Journal, which he has written for since 2010 and he also contributes to the Dow Jones publication EFinancialNews. Until 2013 he was a portfolio manager at IMQubator. Previously, he worked at London-based currency manager Millennium Global Investments as co-manager of a fund of funds. Lovell also carried out hedge fund research for Duration Asset Management and The Capital Partnership. He has also done equity analysis for independent research house Ideaglobal and economic analysis for the UK Government. In addition, Lovell has written blog posts for the AllAboutAlpha thought forum that is owned by the CAIA Association. He has served as a grader for the CFA exams, and he contributes to CAIA curriculum development. Lovell also holds the CAIA (Chartered Alternative Investment Analyst), FRM (Financial Risk Manager) and IMC (Investment Management Certificate) designations. He holds an economics degree from the University of Leicester.
Hansi Mehrotra, CFA, has over 20 years of financial services industry experience, primarily in online delivery of investment research and consulting for the wealth management industry. Mehrotra helps institutional investors and wealth managers research investment opportunities through a due diligence tool (DiligenceVault.com) and a content site focused on India (MoneyManagementIndia.net). She also helps retail investors understand the basics of money through TheMoneyHans.com blog. Previously, Mehrotra was Asia Pacific head of wealth management for Mercer’s Investment Consulting business, based in Australia and Singapore. She developed an online research portal which adapted institutional research for the wealth management segment. She also led a number of projects in India including design of the investment options for the New Pension System. Before Mercer, Mehrotra worked at van Eyk, another leading research provider in Australia. She holds a Bachelor of Arts degree from Delhi University, and a Graduate Diploma of Applied Finance and Investments.
Heather Packard is the director of product development at CFA Institute and serves as the subject matter expert in leadership, management, and communication skills (LMCS). Previously, she was the managing partner at Trilogy Corporation of Virginia, where she was responsible for developing and cultivating a regional territory for telecommunications and network integration sales. Packard also served as the coordinator of collections for the Science and Engineering Libraries at the University of Virginia. She holds an BA in English and Spanish Literature from the University of Tennessee, Knoxville, and an MA in Spanish Literature from the University of Virginia. Topical Expertise: Leadership, Management, and Communication Skills
Jan Squires, CFA, is managing director of the Strategic Products and Technology Division at CFA Institute. Most recently he served as managing director of Asia-Pacific Operations, and he also served as head of Exam Development for the CFA Program. Previously, Squires was a professor of finance and general business at Southwest Missouri State University, where he published research in such publications as Financial Practice and Education, the Journal of Education, and the Journal of Economics and Finance. He was a member volunteer and consultant for CFA Institute for more than 10 years before joining the staff. Squires holds a doctorate in business administration from the Darden School at the University of Virginia.
Janet J. Mangano, formerly a senior portfolio manager with PNC Wealth, is in Short Hills, New Jersey.

Book Review: Invest with the Fed

Invest with the Fed

This book provides overwhelming evidence that heeding the Fed’s signals can enhance portfolio performance. The authors provide backtested proof of success in investing in equities side by side with the Fed. Their insightful, analytical discussions will inspire readers to begin implementing the recommended strategies, which can make a huge, positive difference in portfolio performance over long periods, across economic cycles, and under a variety of monetary conditions. Read more

Leave a Comment

Janet Zhang

6 Posts
Janet Zhang is Content Director, China at CFA Institute, where she leads the charge in providing content in Chinese to local members and develops content focusing on China for the global member community. Previously, she worked as an economist at Gavekal Dragonomics as well as Teck Resources, covering macroeconomic issues in China. Janet holds a PhD in economics from Nankai University and was also a Post Doc Fellow at Tsinghua University.
Jason Voss, CFA, is a content director at CFA Institute, where he focuses on fixed income, behavioral finance, corporate finance, and quantitative methods. He is the author of The Intuitive Investor, and he also ran a successful blog titled What My Intuition Tells Me Now. Previously, Voss was a portfolio manager at Davis Selected Advisers, L.P., where he co-managed the Davis Appreciation and Income Fund. He holds a BA in economics and an MBA in finance and accounting from the University of Colorado. Topical Expertise: Behavioral Finance · Corporate Finance · Fixed Income
Jeannette Showalter, CFA, is a commodities futures and managed futures specialist, working with institutions and individuals. She is an AP with Walsh Asset Management headquartered in Chicago. Previously, Showalter worked as an institutional manager for People's Bank (the bank's account); family wealth office management; and risk arbitrage at Paine Webber. She was the Money and Investing columnist for Florida Weekly ( 2010 -2015). Showalter earned her MBA (Magna Cum Laude) from New York University in 1978, and her undergraduate degree from the University of Connecticut in 1974.
Jelena Sokolova, CFA, is a senior research analyst and member of the research committee at CE Asset Management AG in Zurich, Switzerland. She has 5 years of equity research experience covering European large caps with a generalist focus. She has a Master’s degree in International business from Riga International School of Economics and Business Administration (RISEBA).
Jennifer Curry is the managing editor of the Enterprising Investor. Previously, she was the social media manager at the New York Society of Security Analysts (NYSSA). Prior to her work at NYSSA, Curry worked as the senior project editor for a nonfiction imprint at Barnes & Noble Publishing and as an assistant editor at the H.W. Wilson Company. She is the editor of several volumes in the Reference Shelf series, and her writing has appeared in Smithsonian, IndustryWeek, Barnes & Noble Review, and other publications. Curry holds a BS in journalism and a BA in anthropology from the University of Kansas, and an MA in anthropology from Hunter College, City University of New York.

Top 10 Posts from 2015: The Buffett Bet, Oil Prices, and Accounting Errors

Top 10 Posts from 2015: The Buffett Bet, Oil Prices, and Accounting Errors

As the year draws to a close, it is illuminating to look back at the articles that most resonated with our readers in 2015. In many ways, the results encapsulate the macro and micro issues that investment professionals encountered throughout the year and that are likely to shape the industry in the weeks and month ahead. So what were the leading posts from 2015? Read more

Leave a Comment
Jerry H. Tempelman, CFA, is a former senior financial and economic analyst with the Federal Reserve Bank of New York.
Jim Allen, CFA, is head of Americas capital markets policy at CFA Institute. The capital markets group develops and promotes capital markets positions, policies, and standards.
Joachim Klement, CFA is a trustee of the CFA Institute Research Foundation.Previously, Joachim was Chief Investment Officer at Wellershoff & Partners Ltd. and before that Head of the UBS Wealth Management Strategic Research team and Head of Equity Strategy for UBS Wealth Management. Klement studied mathematics and physics at the Swiss Federal Institute of Technology (ETH) in Zurich, Switzerland and in Madrid, and graduated with a master’s degree in mathematics. In addition, he holds a master’s degree in economics and finance.
John Bowman, CFA, is managing director and co-lead of education at CFA Institute. Previously, he served as head of Innovation and Product Solutions at CFA Institute, where he crafted and executed the vision for member engagement through multimedia products, social media, mobile delivery, and the MyCFA portal. Prior to joining CFA Institute, Bowman was a fund manager and equity analyst for Mellon Growth Advisors and State Street Global Advisors. He holds a BS in business administration from the University of Mary Washington.
John Rogers, CFA, is the former president and CEO of CFA Institute.

A New Era of Fiduciary Capitalism? Let’s Hope So

Putting Investors First

Five years after the global financial crisis washed over us all, the future of finance is unclear. The debate continues over how to rebuild a financial system that is vibrant and dynamic, that serves society, and that won’t blow up and drag the whole world down every few years. From my perspective, a new era of capitalism is emerging out of the fog. What I define as fiduciary capitalism is gathering strength and needs to become the future of finance. Read more

5 Comments
Julia VanDeren is the career services representative at CFA Institute, where she manages the CFA Institute JobLine and the CFA Institute Career Centre and serves as the subject matter expert in career management skills. Previously, she served CFA Institute in the role of society relations representative, consulting with member societies in the eastern US region. VanDeren holds a BA from the University of Virginia and an MPA from Virginia Commonwealth University.
Julia Hammond, CFA, is a director in the Educational Events and Programs group at CFA Institute, where she leads the planning for a number of annual and specialty conferences, including the Fixed-Income Management Conference, Security Analysis Conference, and the Financial Analysts Seminar. Previously, she developed strategies for pension, endowment, and foundation fund clients at Equitable Capital Management (now AllianceBernstein), and she has also worked as an auditor for Coopers & Lybrand (now PricewaterhouseCoopers). Hammond served for a number of years as chair of the investment committee for the Rockbridge Regional Library Foundation. She holds a BS in accounting from the McIntire School of Commerce and an MBA from the Darden School at the University of Virginia.

Navigating the Fog: Geopolitics and the Global Bond Market

Dan Fuss, CFA, vice chair of Loomis Sayles, has always encouraged analysts and portfolio managers to think broadly about their approach to investment analysis. He provided a global analytical framework through his four Ps — peace (or lack thereof), people, politics, prosperity, and adding perhaps a fifth P for policy and the evolving role of central banks — at the 2015 CFA Institute Fixed-Income Management Conference. Read more

Leave a Comment
Larry Cao, CFA, is director of content at CFA Institute, where he serves as a thought leader for Asia-focused content, events, and conferences. Previously, he served as senior client education and product communications manager for the Asia-Pacific region at HSBC. Cao also served as a fixed-income portfolio manager at the People’s Bank of China. He also worked at Munder Capital Management, where he managed US and international equity portfolios, and at Morningstar, where he developed financial planning solutions and managed asset allocation strategies for a global financial institution clientele. Cao was a visiting scholar at the MIT Sloan School of Management and holds an MBA from the University of Notre Dame.
Mr. Kroijer (born 1972) is the author of "Money Mavericks - Confessions of a Hedge Fund Manager" (Financial Times Press – 2010 & 2012 - 2nd edition) and “Investing Demystified – How to Invest without Speculation and Sleepless Nights” (Financial Times Press - 2013). Mr. Kroijer currently serves on the Board of Directors of OVS Capital, Linden Grove Capital, Northlight Capital, Steadview Capital, and Maj sinAI (London, Mumbai/Hong Kong, and Copenhagen based hedge funds), and ShipServ Inc. (the leading online platform for shipping supplies with annual sales of appx $4 billion). He has frequently appeared as a finance expert on a broad range of media, including BBC, CNN, CNBC, Bloomberg, NY Times, Forbes, etc. Previously Mr. Kroijer was the CIO of Holte Capital Ltd, a London-based market neutral special situations hedge fund which he founded in 2002 before returning external capital in the spring of 2008. Prior to establishing Holte Capital, Mr. Kroijer served in the London office of HBK Investments focusing on special situations investing and event-driven arbitrage. In addition, he previously worked at SC Fundamental, a value-focused hedge fund based in New York, and the investment banking division of Lazard Frères in New York. While in graduate school Mr. Kroijer held internships with the private equity firm Permira Advisors (then Schroder Ventures) and management consulting firm McKinsey & Co. Mr. Kroijer graduated Magna cum Laude from Harvard University with a degree in economics and received a MBA from Harvard Business School. A Danish national, Mr. Kroijer lives in London and is married with twin daughters.
Laurel Teo, CFA, is director of society advocacy engagement at CFA Institute. She works with member societies in the Asia-Pacific region to advance awareness and adoption of CFA Institute ethics and standards, as well policy positions on financial market integrity issues.

India’s Infrastructure Investments: Huge Opportunities but No Takers

India’s Infrastructure Investments: Huge Opportunities but No Takers

It’s no secret that big economies poised for rapid growth need robust infrastructure. Without the latter’s proper support, expansion will slow or worse, stall. This need is especially acute in India, where infrastructure development has lagged woefully behind that of the economy. With such pressing demand, there have been plenty of projects up for bidding. But investors are not biting. Read more

5 Comments
Lauren Foster is a content director at CFA Institute, where she focuses on private wealth and behavioral finance. Previously, she worked as a freelance writer for Barron’s and the Financial Times. Prior to her freelance work, Foster was an editor and writer for the FT, where she covered wealth management. She holds a BA in political science from the University of Cape Town, and an MS in journalism from Columbia University. Topical Expertise: Behavioral Finance · Private Wealth Management
Malcolm M. Trevillian is the founder of Chatham Advisors, which provides private wealth management to high-net-worth investors. He is also a member of the investment committee at Verity Asset Management, an investment firm specializing in serving the higher education and non-profit communities. He has 30 years of experience managing portfolios for individuals and institutions. Trevillian holds the Chartered Market Technician and Certified Financial Planner designations. He also served on the CFA Institute Board of Governors and as president of CFA North Carolina. He has also served as an adjunct professor at Duke University.
Manuel Stagars is a serial entrepreneur and financial innovation consultant for corporate and private clients. He holds the Chartered Alternative Investment Analyst (CAIA) and Energy Risk Professional (ERP) designations.

Book Review: The End of Banking

endofbanking-header

In addition to carefully explaining how the financial sector maneuvered itself into the financial crisis of 2007–08, The End of Banking presents several unconventional ideas to do away with regulatory capital arbitrage that sticks taxpayers with the bill for bankers’ risk taking. It also promises a fairly straightforward policy framework that proposes to reduce shadow banking, decentralize financial services from too-big-to-fail banks, improve regulation, and realign the private and the public sector with transparent monetary policy. Read more

2 Comments
Mark Armbruster, CFA, is president of Armbruster Capital Management, Inc. (ACM), a boutique wealth management firm serving high-net-worth individual and institutional clients. ACM uses index funds, exchange-traded funds (ETFs), and other investment vehicles to build portfolios designed to reduce investment-related costs and taxes in order to maximize net returns. Previously, he worked in equity research on Wall Street, following the aerospace and defense industries at Smith Barney. Armbruster also worked in the equity strategy group for Salomon Smith Barney’s Chief Equity Strategist. He also started an investment advisory firm, where he served as chief investment officer. Armbruster has served on numerous nonprofit and for-profit corporate boards. He also consults on and provides expert testimony for investment-related legal disputes. Armbruster has been quoted on investment matters in several investment publications, including the Wall Street Journal and Investor’s Business Daily. He frequently gives talks on investment matters to professional investor groups. Armbruster has served as president of CFA Society Rochester. He holds a degree from the University of Rochester.
Mark Harrison, CFA, is director of publications at CFA Institute, where he contributes to a suite of publications that includes the Financial Analysts Journal, CFA Digest, and Conference Proceedings Quarterly. He has more than 12 years of investment experience as a portfolio manager and securities analyst. As investment manager of the West Midlands Pension Fund, part of the UK local government pension fund, Harrison managed a portfolio of European equities and had oversight of external managers and hedge fund selection. He is also the author of The Empowered Investor and holds the ASIP designation. Harrison holds BA and MA degrees from the University of Oxford.
Mark K. Bhasin, CFA, is senior vice president of Basis Investment Group, LLC, New York City.

Book Review: The Nature of Value

Nature of Value

Incorporating concepts from evolution and ecology, this lucid and thought-provoking book presents the economy as an evolutionary system on the premise that an understanding of how evolution works in the biological realm provides insight into this process. It will help allocators improve their allocation decisions and will help all investors attain a more robust understanding of the dynamics that create and sustain value. Read more

Leave a Comment
Mark S. Rzepczynski is CEO of the Funds Group at FourWinds Capital Management, Boston

Book Review: Mastering ’Metrics

Mastering Metrics

The authors provide an easy-to-read overview of key concepts in econometrics for anyone desiring a strong intuitive description of how to conduct analysis using simple techniques. Covering a limited number of topics with practical examples of each, they offer a useful framework for conducting fundamental econometric analysis. Although the book does not directly discuss financial issues, it provides a good foundational review for the financial empiricist who wishes to better structure econometric tests. Read more

1 Comment
Martin Fridson, CFA, is, according to the New York Times, “one of Wall Street’s most thoughtful and perceptive analysts.” The Financial Management Association International named him its Financial Executive of the Year in 2002. In 2000, Fridson became the youngest person ever inducted into the Fixed Income Analysts Society Hall of Fame. He has been a guest lecturer at the graduate business schools of Babson, Columbia, Dartmouth, Duke, Fordham, Georgetown, Harvard, MIT, New York University, Notre Dame, Rutgers, and Wharton, as well as the Amsterdam Institute of Finance. Fridson's writings have been praised widely for their humor, rigor, and utility. He holds a BA in history from Harvard College and an MBA from Harvard Business School.

Book Review: Wall Street Wars

Wall Street Wars

In its extensive recounting of financial misdeeds prior to the 1929 stock market crash, this fine work of popular financial history notes the parallels between recent events and the debates in the early 1930s over securities regulation and the subsequent enactment of landmark securities laws. Amid talk of the need to restore trust in the financial industry, the incidents recounted in the book suggest that restoration should apply only to firms that are worthy of trust and must come about through commitment to ethical practices, rather than public relations campaigns. Read more

Leave a Comment

Matt Dority

1 Post
Matt Dority is a Partner and Senior Mathematician at Quantitative Equity Strategies, LLC, where he has nearly a decade of contributions to investment management and research. He focuses on liquid alternative fund strategies and index solutions, including the award-winning Aspen Managed Futures Beta Index. Matt earned his B.A. in Mathematics and Economics (cum laude) and B.S. in Business Administration with Finance emphasis at the University of Colorado at Boulder, where he also completed Quantitative Finance and Technology/Arts/Media (TAM) certificate programs.
Michael A. Martorelli, CFA, is a director at Fairmount Partners, West Conshohocken, Pennsylvania, and adjunct professor of finance at Philadelphia University.
As Director of Research at Ritholtz Wealth Management, Michael Batnick, CFA, reads research publications and is in charge of the company’s internal research efforts. Batnick is a member of the investment committee, and spends most of his time developing and implementing risk management and portfolio strategies for the firm’s clients. Batnick writes at The Irrelevant Investor blog, where he aims to educate people about investing.
Michael McMillan, CFA, is director of Ethics and Professional Standards at CFA Institute, where he is responsible for creating, sourcing, and developing educational content for CFA Institute members and investment professionals in the area of ethics and professional standards. Previously, he was a professor of accounting and finance at Johns Hopkins University’s Carey School of Business and George Washington University’s School of Business. Prior to his career in academia, McMillan was a securities analyst and portfolio manager at Bailard, Biehl, and Kaiser and at Merus Capital Management. He is a certified public accountant (CPA) and a chartered investment counselor (CIC). McMillan holds a BA from the University of Pennsylvania, an MBA from Stanford University, and a PhD in accounting and finance from George Washington University. Topical Expertise: Financial Statement Analysis · Standards, Ethics, and Regulations (SER)

Supervisory Responsibilities: “See No Evil, Hear No Evil” Won’t Fly

SAC Capital Advisors has agreed to plead guilty to insider trading violations, but owner Steven A. Cohen still faces SEC charges that he failed to “reasonably supervise two of his senior employees who engaged in insider trading under his watch.” These charges should make all investment professionals with supervisory responsibilities stop and think about whether they are “reasonably supervising” their employees. Read more

4 Comments
Michael Oliver Weinberg, CFA, is Chief Investment Strategist at Protégé Partners. He is a senior managing director and a member of the investment, risk, and management committees. He is also an adjunct associate professor of economics and finance at Columbia Business School. Previously, Weinberg headed the global equity business at FRM and served as a portfolio manager at Soros. He also worked at Credit Suisse First Boston and served as a real estate analyst at Dean Witter. Weinberg is an advisory board member for the Stern Investment Management and Research Society, the WoodLake Group, and PeerIQ. He is a member of the Economic Club of New York; the New York Society of Security Analysts; and the Yale, Princeton, and New York University family office councils. Weinberg has written articles for the New York Times, Institutional Investor, and CAIA, and he has been interviewed by the Wall Street Journal, the Financial Times, CNBC, Bloomberg, and Reuters. He holds a BS from New York University and an MBA from Columbia Business School.
Monika Freyman, CFA is a Senior Manager at Ceres where she focuses on corporate sustainability reporting and socially responsible investing. She works with investors both individually, as well as collectively, by leading Ceres' Investor Water Hub on deepening integration of water and ESG (environmental, social and governance) factors into portfolio management processes. She publishes reports providing investors guidance on ESG and water integration best practices or highlighting water issues in high risk sectors. Freyman has also worked as a research consultant for the Initiative for Responsible Investment at Harvard, exploring the roots of the concept of sustainability to inform the Sustainable Accounting Standards Board (SASB). Freyman has a degree in Finance from the University of British Columbia and a Master in Science from Loyola University Chicago.
Murad J. Antia, CFA, teaches financial statement analysis and investments at the University of South Florida, Tampa.
Nathan Jaye, CFA, is a speaker on intelligence, financial journalist and founder of Ziprz, a new fashion company in San Francisco. Jaye's insights and writing on intelligence, technology and meaning have been shared on Business Insider, the American Monetary Association, American Mensa, New York Hedge Fund Roundtable and 100 People You Should Know.
Nitin Mehta, CFA, is managing director for Europe, Middle East, and Africa operations at CFA Institute. He is based in London.
Padma Venkat, CFA, is former director of capital markets policy at CFA Institute. She is responsible for promoting CFA Institute standards, policies, and positions in the Asia-Pacific region.

Pat Light

25 Posts
Pat Light is an assistant editor at CFA Institute. Before joining the CFA Institute editorial staff, he worked as a teacher. Light has a bachelor's degree in English from Duke University.
Paul McCaffrey is an editor at CFA Institute. Previously, he served as an editor at the H.W. Wilson Company. His writing has appeared in Financial Planning and DailyFinance, among other publications. He holds a BA in English from Vassar College and an MA in journalism from the City University of New York (CUNY) Graduate School of Journalism.

The Buyback Binge: Is It Good for Shareowners?

They’ve been dismissed as “self-cannibalization,” “corporate cocaine,” a recipe for conflict of interest, and a form of stock price manipulation — not to mention short-sighted and counterproductive. But are share buybacks really that bad? We polled CFA Institute Financial NewsBrief readers to see what they thought. Read more

3 Comments
Paul Smith, CFA, is president and CEO of CFA Institute. He has more than 25 years of relevant financial services leadership experience in many aspects of the investment management industry.
Peter Lazaroff, CFA, is the Director of Investment Research and a Wealth Manager at Plancorp, LLC based in St. Louis. Peter is a CFA Charterholder and CFP® certificant. He holds a BA in economics and management from DePauw University.

Hedge Funds: What Are They Good For?

Hedge Funds: What Are They Good For?

Hedge fund exposure fails to deliver for investors due to exorbitant fees, high competition, the ineffectiveness of active management, and a general misunderstanding of the underlying exposures and correlations (i.e., hedge funds don’t hedge). But the purpose of hedge funds from the perspective of the manager, parent company, consultants, and brokerages is to collect fees. In that sense, hedge funds have been a huge success each and every year. Read more

14 Comments
Peter M.J. Gross is an online content specialist for CFA Institute, where he manages blogs for the CFA Institute Annual Conference, European Investment Conference, and Middle East Investment Conference. Previously, he worked at Hampton Roads Publishing Company and at MFS Investment Management. Gross’s writing has appeared in The Finance Professionals’ Post and The Hook. He earned the Claritas™ Investment Certificate and holds a BA degree from Connecticut College.
Prasad Ramani, CFA, is Director, Portfolio Risk & Quantitative Analytics at a major family office based in Dubai, United Arab Emirates, where he is responsible for developing, managing and monitoring the investment risk and reporting framework for the overall portfolio. He is also a key subject matter adviser on quantitative techniques to optimize strategic asset allocation and assist with portfolio management. Ramani has over 13 years of experience in quantitative risk and portfolio management, financial modeling and programming. He is a Certified Financial Risk Manager (FRM) with the Global Association of Risk Professionals (GARP). Ramani holds an MS in quantitative and computational finance (QCF) from the Georgia Institute of Technology.
Rebecca Fender, CFA, is head of the Future of Finance initiative at CFA Institute, a long-term global effort to shape a trustworthy, forward-thinking financial industry that better serves society. The initiative features publications, events, media campaigns, tools, and other communications for financial professionals, policymakers, and the general public. Previously, she worked in the Education Division at CFA Institute, developing conference agendas and recruiting speakers, including overseeing the flagship Annual Conference. Prior to joining CFA Institute, Fender was a vice president at BlackRock, and she also worked at Cambridge Associates. She holds an AB in economics from Princeton University and an MBA from the Darden School at the University of Virginia.
Rhea Wessel is an American freelance writer based in Frankfurt, Germany. More of her work can be found here.

Investors Need to Understand the Risks of Smart Beta

Smart Beta

The low-yield environment has many investors seeking new sources of outperformance. One development has been the growth of so-called smart beta investments, a $400 billion ETF market with a strong flow of funds from both institutions and retail investors. But are such funds really “smart” and do they truly have the potential to boost performance? Read more

1 Comment
Robert Gowen, CFA, is Head of Product Solutions at CFA Institute, where he oversees a team of content directors that contribute daily to Enterprising Investor. Prior to joining CFA Institute, he worked in the institutional investment industry for BB&T and Fidelity Investments. Gowen earned a BA in economics from Washington University in St. Louis and an MBA from the Darden School at the University of Virginia.
Robert Hagstrom, CFA, is chief investment strategist at Legg Mason Investment Counsel and author of the New York Times best-selling The Warren Buffett Way. He is also the author of The Warren Buffet Portfolio: Mastering the Power of the Focus Investment Strategy; The Essential Warren Buffett: Timeless Principles for the New Economy; NASCAR Way: The Business That Drives the Sport, and The Detective and the Investor: Uncovering Investment Techniques from the Legendary Sleuths. Hagstrom's new book is Investing: The Last Liberal Art (second edition), which was published by Columbia Business School.
Robert J. Martorana, CFA, has worked on the buy-side since 1985 as a stock analyst, portfolio manager, research director, financial advisor, and editor of a hedge-fund website. In 2009, Martorana founded Right Blend Investing, a fee-based RIA that manages individual portfolios and does consulting for the asset management industry. Since 2011, Martorana has published over 1,000 pages of contract research, and he is co-author of Alts Democratized by Wiley Finance.
Robert Martorana, CFA, runs Right Blend Investing (RBI), a fee-based adviser that specializes in retirement solutions. RBI has one unique claim to fame in that it supports an orphanage in Andhra Pradesh, India.
Robert R. Mudra, CFA is a senior-level financial, regulatory and investment executive with deep expertise in the energy / utility industry. Mudra drives investment growth by consulting and publishing on energy and sustainable, responsible and impact investing (SRI) while providing comprehensive analysis of environmental, social and governance (ESG) issues. He currently serves on the Foundation Board of Directors for Marianjoy Rehabilitation Hospital in Wheaton, Illinois.
Robert Stammers, CFA, is director of Investor Education at CFA Institute, which includes management of the Inside Investing Blog. Previously, he was the principal for his founded company A2O Consulting where he consulted to aide real estate owners, lenders, and syndicators, develop and analyze structured real estate investments. There, Stammers developed strategy for obtaining debt and preferred equity capital as well as created finance-related marketing materials and research papers for various clients. He has written more than 100 articles on various financial and investment topics for several investment periodicals, such as Forbes and Investopedia. Stammers served as a senior equity analyst at Long Term Short Term, Inc, where he was responsible for the creation of new investment tools and instructional products to provide the revenues for two new investment education companies. As a senior executive for several institutional fund managers, he was the portfolio manager for a real estate fund, a private timber fund, and several pension fund separate accounts. Stammers holds a BA in economics from Connecticut College and an MBA from Emory University.

Why Clients Leave

Trust is the main ingredient that binds clients to particular investment professionals or firms. But that trust can be easily broken, leading investors to seek alternate service providers. Trust is a broad concept, however, and according to a new poll, what causes clients to lose trust and leave a firm is not necessarily what advisers think it is. Read more

Leave a Comment
Robin Powell is a journalist campaigning for the interest of individual investors. He blogs as The Evidence-Based Investor.

UK Active Fund Managers: Analyzing Their Value

UK Active Fund Managers: Analyzing Their Value

Every day investors are inundated with noise — almost all of it irrelevant — about what they should do. Then, when there really is something important — information that will genuinely help you achieve better returns — it often gets drowned out. Such is the case with a recent study on the merits of active fund management. Read more

3 Comments
Rodney Sullivan, CFA, is former head of publications at CFA Institute and editor of the Financial Analysts Journal. He was previously director of research at Trigon Healthcare, Inc. (now Anthem Healthcare, Inc.), where he oversaw portfolio strategy and execution that included asset allocation, risk analytics, and equity and fixed-income portfolio management. He holds a BS and an MA from Virginia Commonwealth University.

Roger Mitchell

4 Posts

Best of 2015: A Sea in Agitation

Best of 2015: A Sea in Agitation

In Lew Wallace’s Ben-Hur: A Tale of the Christ, a sense of powerlessness runs through the dramatic story of betrayal, revenge, and redemption. As the novel unfolds, the sea comes to symbolize the vast impersonal forces — chaos, volatility, unpredictability, shifting currents of fortune — that seem to shape individual destinies. Looking back over the articles published in CFA Institute Magazine during 2015, this literary theme seems fitting for investors and markets over the past year. Read more

Leave a Comment
Ron Rimkus, CFA, is a content director at CFA Institute, where he focuses on economics and alternative investments. Previously, he served as CEO at the online technology company he founded, Chaos Management, Inc. Prior to founding Chaos Management, Rimkus served as director of large-cap equity products for BB&T Asset Management, where he led a team of research analysts, regional portfolio managers, client service specialists, and marketing staff. He also served as a senior vice president and lead portfolio manager of large-cap equity products at Mesirow Financial. Rimkus earned a bachelor of arts holds a BA in economics from Brown University and an MBA from the UCLA Anderson School of Management. Topical Expertise: Alternative Investments · Economics

Ron Surz

1 Post
Ronald J. Surz is president and CEO of PPCA Inc. and its division, Target Date Solutions. He is a pension consulting veteran, having started with A.G. Becker in the 1970's. Surz earned an MBA in Finance at the University of Chicago and an MS in Applied Mathematics at the University of Illinois.
Ronald L. Moy, CFA, is associate professor of finance at Tobin College of Business, St. John's University, Staten Island, New York.

Book Review: Misbehaving

Misbehaving

Richard H. Thaler takes readers on an entertaining journey through the evolution of behavioral economics. His gift for writing has produced a book that is a blend of his life as a research professor, stories of other economists he met along the way, and a history of behavioral economics. This book is an excellent read on the shortcomings of classical economic and finance theory. Read more

2 Comments
Salil Mehta, CFA, is a former leader of the U.S. Treasury/TARP's analytics team, as well as PBGC’s policy, research, and analysis, and their first risk analysis function. He is a statistics adjunct professor at Georgetown University, on the board of the American Statistical Association's peer-reviewed journal, and a council for BlackRock's FutureAdvisor. Mehta is the creator of the free statistics blogs, Statistical Ideas, and also authored the book, Statistics Topics.

Sam Del Rowe

16 Posts
Sameer S. Somal, CFA, is the Chief Financial Officer at Blue Ocean Global Wealth and Blue Ocean Global Technology. Prior to co-founding Blue Ocean Global Wealth, he was a Senior Investment Analyst at The Bank of Nova Scotia and a Financial Advisor and Intermediary at Morgan Stanley and Merrill Lynch & Co. Somal serves on the Financial Planning Association (FPA) National Diversity Committee and the Board of Directors of the Philadelphia/Tri-State FPA.
Samuel Lum, CFA, is director of Private Wealth and Capital Markets at CFA Institute. He focuses on wealth management and capital markets, mainly in an Asia- Pacific context. Lum's current research and development interests include investment policy, asset allocation, exchange-traded funds and products, indexing methodologies, family office and governance issues, alternative assets, and risk management. He has more than 20 years of professional experience in the investment industry, encompassing investment portfolio management at Hutchison Whampoa, a global conglomerate based in Hong Kong; wealth management in the trust division of the TD Bank Financial Group, covering the Asian markets; investment portfolio management, fund and treasury management, corporate finance, and capital markets research at the treasury division of the Ontario Hydro Corporation; and securities brokerage in an online financial services joint venture of subsidiaries of Credit Suisse and Hutchison Whampoa. Lum holds the CAIA, FRM, and TEP professional designations. He also holds an MBA degree. Topical Expertise: Portfolio Management · Private Wealth Management
Santiago Padua, CFA is an Investment Analyst at Pegasus, a private equity and real estate investment fund, in Buenos Aires, Argentina. Before joining Pegasus, Santiago worked as a Senior Consultant at Ernst & Young and also as a Senior Research Analyst at Crisil Global Research and Analytics (formerly named Crisil Irevna Argentina S.A.), both based in Buenos Argentina. Santiago earned his CFA charter in 2012 and finished his undergraduate studies at Universidad Nacional de Cuyo (Mendoza, Argentina).
Scott Fearon, CFA, is founder and president of the hedge fund Crown Capital Management. He is also the author of Dead Companies Walking: How a Hedge Fund Manager Finds Value in Unexpected Places, which chronicles his 30 years of experience in the investment management industry. Fearon holds a BA from Stanford University and an MBA from the Kellogg School of Management at Northwestern University.

Is It Time to Stock Up on Struggling Retailers?

Is It Time to Stock Up on Struggling Retailers?

Many retailers enjoyed a robust holiday season. Investors looking to capitalize on these glad tidings might be tempted to consider some of the bargain stocks in the sector, especially those that have faltered in recent years, such as JC Penney (JCP) and Sears (SHLD), or even deeply troubled firms, such as RadioShack (RSH) and Wet Seal (WTSL). Not to play the Grinch, but history suggests this would be a terrible idea. Read more

5 Comments
Scott Krisiloff, CFA, is the CEO of Avondale Asset Management, an independent investment advisory firm located in Los Angeles. Krisiloff is the author of the firm's blog, Company Notes.
Sergei Gorbunov is with Scarsdale Equities LLC, an institutional broker/dealer based in New York. He focuses on economic and investment analyses. Mr. Gorbunov joined the firm in July 2012 after retiring from a 20+ year career at the United Nations. Prior to joining the UN, Sergei spent more than 15 years with the Russian Academy of Sciences. He graduated in 1972 summa cum laude from Financial University, Moscow, Russia, with MSc in finance. He received a Ph.D. in economics in 1977, and a Doctorate Degree in economics in 1988, both from the Russian Academy of Sciences. Mr. Gorbunov is the author of three books, several book chapters and almost two hundred articles published in various economic and financial journals. He holds CFA designation and is a member of the New York Society of Security Analysts and the CFA Institute. He was born and raised in Moscow, Russia.
Shreenivas Kunte, CFA, is director of content at CFA Institute, where he contributes financial market insights about India and the developed world. Previously, he taught at and managed SP Jain’s Trade and Applied Research lab, which he helped found. Kunte also served as a country trading strategist at Citigroup’s Tokyo office. He actively contributes to the development sector in India and is an external research scholar at the Indian Institute of Technology Bombay.
Simon Lack, CFA, is founder of SL Advisors, LLC. Previously, he worked at JPMorgan, where he sat on the investment committee and founded the JPMorgan Incubator Funds, two private equity vehicles that took economic stakes in emerging hedge fund managers. Lack is the author of The Hedge Fund Mirage: The Illusion of Big Money and Why It’s Too Good to Be True and Bonds Are Not Forever: The Crisis Facing Fixed Income Investors. He serves as vice chair of the Market Integrity Committee of the New York Society of Security Analysts.
Stephen Horan, CFA, CIPM, is managing director and co-lead of education at CFA Institute. Prior to joining CFA Institute, he was a principal of Alesco Advisors LLC, a financial analyst and forensic economist in private practice, and a professor of finance at St. Bonaventure University. Horan co-authored The New Wealth Management: A Financial Advisor’s Guide to Managing and Investing Client Assets, a how-to guide for financial advisers; edited the volume Private Wealth: Wealth Management in Practice, a practitioner’s guide to wealth management; and has published three editions of the Forbes/CFA Institute Stock Market Course, a comprehensive guide to personal investing and wealth management. He is also the author of dozens of articles in leading peer-reviewed journals and has written for the CFA Program curriculum. Horan is a frequent columnist in Financial Times and an associate editor for the Financial Services Review and serves on the editorial board of the Journal of Wealth Management. He holds a BBA in finance with a minor in mathematics from St. Bonaventure University and a PhD in finance with a minor in economics from the State University of New York at Buffalo. Topical Expertise: Private Wealth Management
Stewart Mader was the director of social media and online engagement at CFA Institute, where he oversaw efforts to reach journalists, legislators, policymakers, and investment professionals who play essential roles in shaping the direction of the financial services industry. He helped launch the Enterprising Investor, established the organization’s growing use of social media campaigns, and he lead a global team with staff in New York, London, and Hong Kong. He is the author of Wikipatterns (Wiley, 2008), a practical guide to improving productivity and collaboration in organizations. He holds a BS in chemistry from the University of Hartford and an MS in curriculum development and instructional technology from the State University of New York at Albany.
Susan Hoover is a project administrator at CFA Institute and part of the team managing the CFA Institute Enterprising Investor blog. Previously, she worked for McCallum & Kudravetz, PC and the U.S. Department of the Navy. Hoover earned the Claritas™ Investment Certificate and holds a BA degree from Lehigh University and a JD degree from the Washington College of Law, American University.
Sverre Rørvik Nilsen is a financial entrepreneur working out of Oslo, Norway. He runs two financial startups: One is a trading platform; the other a newswire. Nilsen also consults for a number of different clients. He has a weekly webshow with Howard Lindzon at Stocktwits.
Sviatoslav Rosov, PhD, CFA, is an analyst in the capital markets policy group at CFA Institute. He is responsible for developing research projects, policy papers, articles, and regulatory consultations that advance CFA Institute policy positions, focusing on market structure and wider financial market integrity issues.
Tadas Viskanta is the founder and editor of Abnormal Returns. He is also the author of Abnormal Returns: Winning Strategies from the Frontlines of the Investment Blogosphere, which culls lessons learned from his time blogging.

Essential Listening: Perfect Bets

Essential Listening: Perfect Bets

The last week was light on news from the podcasting world, so Tadas Viskanta jumps right into his selections, with entries touching on high-frequency trading (HFT), crowdfunding’s impact on real estate, and David Simon’s journey from newspaper reporter to one of the most celebrated television writers and producers. Read more

1 Comment

Ted Seides, CFA

11 Posts
Ted Seides, CFA, is the Managing Partner of Hidden Brook Investments, LLC, an advisory and private investment firm. His first book, So You Want to Start a Hedge Fund: Lessons for Managers and Allocators, (Wiley) was published in February, 2016. Seides was a founder of Protégé Partners LLC, where he served as President and Co-Chief Investment Officer. He began his career in 1992 with the Yale University Investments Office. Seides sits on the Board of Trustees of the Greenwich Roundtable, and is a Trustee and member of the investment committee at the Wenner-Gren Foundation. He serves on the Board of Technoacademy, and previously was a Board member of Citizen Schools-New York. Seides holds a B.A. in economics and political science, Cum Laude, from Yale University, and an MBA with honors from Harvard Business School.
Thomas Collimore, CFA, is head of industry relations at CFA Institute. Previously, he managed the investor education group. Before joining CFA Institute, Collimore served as managing director of investor relations at CIFG Holding, a group of bond insurance companies based in Paris and Bermuda. He also served as adjunct professor of finance at the College of Insurance, now St. John's University School of Risk Management, Insurance and Actuarial Science. Collimore holds a bachelor’s degree in foreign service, with a concentration in international finance and commerce, from Georgetown University and an MBA, with a finance concentration, from the New York University Stern School of Business.

Thomas Walek

3 Posts
Tom Walek is Founder of Peaks Strategies, a financial and capital markets communications firm based n New York. Peaks Strategies provides impactful, innovative, integrated communications programs that help clients define, differentiate, promote and protect their businesses. Tom has been involved in financial services and capital markets communications throughout his career. An honors graduate of the University of Colorado School of Journalism, Tom started as a financial journalist covering the Chicago futures exchanges. In 1998, he founded Walek & Associates, which was acquired in 2013. He has been honored to receive many awards, the most recent being the 2015 Award for Outstanding Contribution to Hedge Fund Communications from The Hedge Fund Journal.
Tim Nuding, CFA is the Chief Executive of Prosperity Capital Services LLP, a firm that provides research and consulting services for alternative investments. Tim is also the Founder of the Hedge Fund Research Club, sponsored by the CFA Society of the UK and CAIA London chapter. Tim formerly managed international asset management and investment banking businesses for Citibank and Dresdner Bank in the UK and Japan. He received his CFA charter in 2000 and is active in the CFA Society of the UK and the CFA Institute.

Is Leverage Good or Bad?

If we define financial leverage as the process of borrowing capital to make an investment with the expectation that the profits made from the investment will be greater than the interest on the debt, then what makes it good versus bad? Read more

1 Comment
Todd Jankowski, CFA, is head of the Certificate in Investment Performance Measurement (CIPM) program at CFA Institute. He oversees all CIPM program activities, with emphasis on advancing ethical standards and best practices in investment performance evaluation and presentation activities. Previously, Jankoswki spent 12 years at Northwestern Mutual and, most recently, he was head of investment research in the wealth management division, where earlier, he had held investment management positions in the institutional private placement and retail advisory divisions. He has also worked as senior financial analyst for Helling Realty & Investment Company and as an internal revenue agent with the US federal tax authority. Jankowski previously served as a member of the GIPS Investment Performance Council, on the CFA Program Candidate Curriculum Committee Working Body, as a CFA exam grader, and in various executive-level board positions for the CFA Society of Milwaukee. He holds a certificate in distance education from Indiana University, a BBA with a major in accounting and a minor in chemistry from the University of Wisconsin–Oshkosh, and an MBA from the University of Wisconsin–Milwaukee. Topical Expertise: Performance Measurement

Take 15 Series: Selecting and Implementing a Fixed-Income Attribution System

Performance attribution has become a standard requirement for institutional clients. This episode discusses practical issues selecting and implementing a fixed-income attribution system. The method requires a great deal of data and high-quality data management systems, but it could be the basis for a standard method of performance attribution in the fixed-income market. Read more

Leave a Comment

Tom Brakke, CFA

3 Posts
Tom Brakke, CFA, helps investment firms and the buyers of their services to improve decision processes and effectively communicate their ideas internally and externally. At times during his career, Tom has been an analyst, portfolio manager, director of research, creator of investment products, professor, and consultant (including for the Global Research Analyst Settlement). Brakker writes extensively about the business on his blog about the research puzzle and his newsletter, The Prudent Fiduciary Digest.
Tony Tan, CFA, is head of the Standards and Financial Market Integrity division at CFA Institute in the Asia-Pacific region. He is responsible for leading CFA Institute efforts in advocacy, policy development, and regulatory outreach in the APAC region. Tan holds a DBA degree.
Usman Hayat writes about sustainable, responsible, and impact investing and Islamic finance. He is the lead author of "Environmental, Social, and Governance Issues in Investing: A Guide for Investment Professionals", and the literature review, "Islamic Finance: Ethics, Concepts, Practice." He is interested in online learning and has directed three e-courses for CFA Institute: "ESG-100", "Islamic Finance Quiz", and "Residual Income Equity Valuation." The other topics he writes about are macro-economics and behavioral finance. Previously, he was a content director at CFA Institute. He has experience of working in securities regulation and as an independent consultant. His qualifications include the CFA Charter, the FRM designation, an MBA, and an MA in Development Economics. His personal interests are reading and hiking.
Vikram Mansharamani is an experienced global equity investor and lecturer at Yale University. He is also the author of Boombustology: Spotting Financial Bubbles Before They Burst and is a regular commentator in the financial and business media, having contributed to Bloomberg, MarketWatch, CNBC, Forbes, Fortune, the New York Times, the Wall Street Journal, the Atlantic, Yale Global, the South China Morning Post, the Korea Times, the Khaleej Times, Harvard Business Review, and the Daily Beast, among others. Mansharamani holds a BA from Yale University, an MS in Political Science from MIT, and an MS and a PhD from the Sloan School of Management.
Brad McMillan, CFA, is the chief investment officer at Commonwealth Financial Network, a private independent broker/dealer, where he also leads the retirement consulting division. McMillan holds the CAIA, MAI, and AIF professional certifications. He holds a BA from Dartmouth College, an MS in real estate development from MIT, and a BS in finance from Boston College.
After serving as a Captain in the United States Marine Corps, Wesley R. Gray received a PhD, and was a finance professor at Drexel University. Dr. Gray’s interest in entrepreneurship and behavioral finance led him to found Alpha Architect, a research-driven firm that advises Active ETFs (ValueShares) and managed accounts for family offices and high-net-worth individuals. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania.

Will Morrison

1 Post
Will Morrison is manager, business analytics and reporting, at CFA Institute. Previously, he was an engineer at GE, specializing in robotic path planning. Morrison has earned the Claritas Investment Certificate. He holds a BA in computer science from Goucher College, a BS in electrical engineering from the Johns Hopkins University, and a masters of systems engineering from the University of Virginia.
Will Ortel is a researcher and content manager at CFA Institute. He's worked in investment management since 2006 and joined CFA Institute in 2010.