Practical analysis for investment professionals

Performance Measurement & Evaluation


Why Your Portfolio Should Include Scarce Assets

Portfolios that include both productive and scarce assets can deliver similar performance to the S&P 500 with less risk than those that hold only productive assets.

Investment Returns Are NOT Random

Are investment returns random across time as Burton Malkiel suggests in his book, A Random Walk Down Wall Street? There is notable disagreement on this topic. This research finds that practitioners may need to rethink their portfolio optimization routines.

Can the Fed Pull Off a Soft Landing?

The yield curve is inverted, implying an imminent recession, but the stock market is at or near record highs. What can we make of these contradictory signals?

Times Change: The Era of the Private Equity Denominator Effect

How can investors address the denominator effect in private equities?

Venture Capital: Lessons from the Dot-Com Days

Start-up valuations have yet to fully reflect the market's ongoing downdraft. The correction could prove as protracted as that of the dot-com crash. 

The Low-Volatility Factor and Occam’s Razor

Will the low-volatility premium continue to be the best-kept secret in financial markets?

ESG Investing and the Popularity Asset Pricing Model (PAPM)

When it comes to ESG investing, we have to agree that we don’t all agree. 

Bad Ideas: Why Active Equity Funds Invest in Them and Five Ways to Avoid Them

Most active equity funds do not underperform for lack of stock-picking skill. Rather the investment industry incentivizes them to manage business risk at the expense of long-term portfolio performance.

Monte Carlo Simulations: Forecasting Folly?

Forecasts in the form of Monte Carlo simulations are not the best way to anticipate a client's future portfolio returns.

The Unspoken Conflict of Interest at the Heart of Investment Consulting

While investment consultants may claim their advice is conflict-free — and their clients may believe them — it is often heavily biased by the investment consultants' own self-interest.



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