Practical analysis for investment professionals

Portfolio Management


Social Impact Bonds: Turning the Recidivism Rate into an Internal Rate of Return

Is it possible to earn a return by investing in reducing recidivism among prisoners? The link between the economic activity of investing and the social problem of prisoners who are repeat offenders may be far from obvious, but the answer is yes, it is possible.

Take 15 Series: Driving Forces in Currency Markets and the Renminbi

Professor Avinash D. Persaud followed and traded the currency markets for many years at UBS, J.P. Morgan, and other institutions. He shares the insight he accumulated and discusses the real driving forces in currency markets over periods that matter to investors and corporations. The situation of the Renminbi in the context of his framework is also discussed.

Hedge Funds: Important Liquidity Providers and “Small Enough to Fail”

Despite their public perception problem, hedge funds are critical providers of liquidity to markets, according to Sebastian Mallaby.

Book Review: Behavioral Investment Management

Little has been done to improve the overall state of investment management on the basis of our growing knowledge of behavioral finance. This book is an attempt to address this void in a unified investment management framework based on portfolio optimization with a behavioral component that uses advances in utility theory.

Emerging Markets Warrant an Overweight Position in Investor Portfolios, Says David Hale

Economist David Hale told delegates at the 65th CFA Institute Annual Conference that steady increases in exports and capital spending, combined with favorable demographics, will allow emerging market… READ MORE ›

ESG Information and Valuation

Some investors systematically integrate environmental, social, and corporate governance (ESG) considerations in investment decision-making and ownership practices for economic reasons; others may also have noneconomic reasons for doing so. Louise O’Halloran, executive director at the READ MORE ›

Frontier Market Investing: Inefficiency Equals Opportunity

Frontier markets are often thought of as inhospitable investing outposts where corruption abounds and investors face outsized risks. Notwithstanding, the safety and integrity of frontier markets has greatly improved over the past decade, and their growing popularity with professional investors is testament to the fact that the risk-adjusted returns offered by frontier markets are indeed attractive.

Book Review: Pension Finance

M. Barton Waring has succeeded in creating one of the definitive works on the structure and management of defined benefit plans. This indispensable guide for pension advisers dispels any notion of easy solutions to the problems of defined benefit plans, especially underfunding. His sensible solutions are within our grasp if we choose to accept them.

The Japanese Debt Crisis (Part 2): When Does Japan Cross the Event Horizon?

Social spending is virtually exploding in Japan right now, and at the same time its population is aging. Can the event horizon for a debt crisis be that far off?

Does Quantitative Investing Have a Future?

After stumbling badly from 2007 to 2009, quantitative investing has enjoyed a nice run. Nonetheless, a recent CFA Institute member poll suggests that quant managers have a perception problem.



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