Large sample studies of buy-side investment recommendations have been virtually impossible to execute due to a lack of data. But a new research paper relies on a novel data set compiled by the private social networking website SumZero to show that buy-side stock picks influence asset prices by bringing new information to the marketplace. The authors also find evidence of “wealth transfers” flowing from the broader institutional marketplace to the investment firms represented on SumZero.
Unlike many behavioral finance pieces which simply contain behavioral admonitions, “Eight Lessons” actually contains prescriptions for overcoming common errors of judgment.
We’ve all heard the old adage that diversification is the only free lunch in investing, but Paul Bouchey, CFA, debunked that notion at the CFA Institute Wealth Management 2012 conference in Miami. To be clear, Bouchey did not challenge the notion that we can reduce risk without sacrificing return through diversification. He did, however, call out another free lunch — volatility harvesting.
Evidence shows that the groundbreaking research on the importance of asset allocation has been poorly understood and widely misquoted. Practitioners of all stripes might benefit from a visit to the archives to better understand the evolution of asset allocation theory.
In the second half of this interview with the CEO of Entegra Partners, Jim Butcher outlines the benefits of scenario planning, which he thinks is especially useful in these uncertain times.
Scenario planning is a valuable tool for all financial professionals, ranging from those in corporate finance to those in investment management. Part one of an interview with ex-Morgan Stanely/Entegra Partners' Jim Butcher.
How can investors better manage their portfolios in these turbulent times? This central question framed an engaging session led by Pranay Gupta, CFA, last month at the second annual India Investment Conference in Mumbai.
Lower expectations for economic growth and capital markets returns stem from increasing indebtedness and deficits, as well as from demographic trends in the "New Normal." Jason Hsu discusses the implications for passive index strategies and cap-weighted index investing and talks about how asset owners and investing institutions view these issues in Europe and Asia.
At the second annual India Investment Conference in Mumbai earlier this month, Lord Meghnad Desai, emeritus professor of economics at the London School of Economics and Political Science, delivered an eloquent presentation on “The Rediscovered India and the Road Ahead.”
Both OWS movement and Islamic finance aspire to reduce economic injustice but experience of Islamic financial sector shows that economic justice is enticing but elusive.
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