Portfolio Management

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Book Review: The Index Revolution

Book Review: The Index Revolution

Author Charles Ellis, CFA, contends that structural changes in the US market have eliminated the prospect of outperforming average market returns, after fees, through active management. The causes include the rise in institutional and high-speed machine trading and changes in regulation. Active management may still pay off in low-efficiency markets, such as high-yield bonds and emerging market debt. The book does not address findings that the most active stock pickers who take large but diversified positions unlike the index weightings beat their benchmarks. Read more

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Book Review: Hedge Fund Investing

Book Review: Hedge Fund Investing

This introduction to hedge funds is also an instructive work of financial history. It discusses hedge funds in relation to other assets and describes specific hedge fund strategies in detail. It also delves into the nitty-gritty of hedge fund operations. Practical rather than theoretical, the book contains worked examples. And a companion website provides practice questions and guideline answers. Read more

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Health Care Investing: The Promise and the Pitfalls

Health Care Investing: The Promise and the Pitfalls

For Andy Acker, CFA, portfolio manager of the Janus Global Life Sciences Fund, these are especially exciting times for investors in the health care sector. Opportunities abound, as significant advances in understanding the genetic causes of disease have resulted in a surge in new and more effective treatments. At the same time, risks remain and a disciplined approach to stock selection and portfolio construction is imperative for success. Read more

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