equities
Sharing insights from top value investors, the authors discuss the strategies that make concentrated value investing profitable while revealing how to reduce and manage risk over time.
The author provides a thorough guide to the key trading strategies used by hedge funds and offers an overview of active management. He also explains such diverse approaches as quantitative, macro, dedicated short bias, and many more.
C. Thomas Howard, an opponent of the efficient markets hypothesis, advocates for a radical departure from the idea of diversification at the core of a healthy portfolio.
One modern portfolio theory (MPT) pillar that is unquestionably broken is the use of volatility, specifically standard deviation, as a measure of risk, Jason Voss, CFA, and C. Thomas Howard write in the latest edition of The Active Equity Renaissance series. This initial error in MPT's development is a major contributor to active investment management underperformance.
Back in the 1980s, “monetary policy was a great way to stimulate the economy,” Jack Ablin, CFA, said. Not anymore.
With a combined market capitalization of $10 trillion, the Shenzhen and Shanghai stock exchanges are the second largest in the world, writes Tony Tan, DBA, CFA, and recent research demonstrates that, contrary to popular perception, they don't move in lockstep or mostly in response to macro factors. Investors searching for alpha cannot ignore them.
The common assumption is that lower tax rates should increase corporate profits, share prices, investment, and consumption, and thus lift the entire economy. Unfortunately, this is not quite how it happens in the real world.
The irresistible demand of public opinion has forced universal male suffrage, women’s suffrage, prohibition (and its repeal), civil rights, and anti-tobacco laws. Sugar may be the next big crusade. Investors should keep this in mind when looking at food companies and pharmaceuticals.
“I know you are afraid and you should be afraid. I will invest you in products that will not stir up your fears." This sentiment is applied over and over again in the investment industry in one form or another, by the "Cult of Emotion."
Investors need to become experts in the rapid assessment of geopolitical events to be successful in the coming years.