investment strategy
Investors want what Meir Statman calls “utilitarian benefits.” We know that a diversified, low-cost portfolio is theoretically best, but we'd rather have the amusement and bragging rights of expensive, risky investments like hedge funds and specialized equity managers.
He has been "likened to a rock star, hailed as a sex icon, and feted by fashionistas." He's also been referred to as the "enfant terrible" of the financial media. If you haven't already guessed it, I'm talking about Yanis Varoufakis, the erstwhile Greek finance minister and self-described "erratic Marxist."
Today, strategy adds value when it understands and exploits uncertainty better than the competition. Pure efficiency can no longer be the only way.
A reminder that there are certain "laws of gravity" that apply to all investors, regardless of their sophistication or the strategy they're pursuing.
What will happen to the markets in the event of a government shutdown and what to do about it.
Astute investors should not put too much emphasis on labels, and should question their reliance on labeled strategies.
Jan Straatman, global CIO of Lombard Odier, believes that risk management at the portfolio level has been negligent, and a different approach with a new sense of urgency is needed to build more effective solutions.