Practical analysis for investment professionals

Performance Measurement & Evaluation


Revisiting Beta: How Well Has Beta Predicted Returns?

Are CAPM and beta effective predictors of future returns?

“Alpha-Flation”: A Private Market Syndrome

Why does investing in the "average" private market fund seem to go so poorly?

ESG: Full Speed Ahead, with GPS

The Index Industry Association (IIA) surveyed 300 asset managers about how they perceive ESG.

Pointless Market Equivalence? If Not the IRR, Why the PME?

The public market equivalent (PME) does not reflect the economic reality of private equity investing.

Institutional Portfolio Benchmarks: Slow Rabbits?

When it comes to their benchmarking practices, US public pension funds need to find faster rabbits to chase.

Counting the Cost of Capital and Seeding Network-Based Accounting

Cost of capital is a tenuous concept. Charlie Munger amusingly calls it a “perfectly amazing mental malfunction.”

Book Review: Valuation

The authors set out the core principles of valuation and offer a guide to measuring a company's value.

How Long Does Competitive Advantage Last? A Sector Analysis

Does a firm’s competitive advantage tend to endure longer in some sectors than others?

Aswath Damodaran on the COVID Crucible: A Play in Three Acts

"In most crises, young companies suffer at the expense of old companies, risk-on companies get hurt more than risk-off companies," Aswath Damodaran said. "This crisis seems to have flipped the script."

Are Cheaper Funds Really Better Bets?

Investors should be agnostic to absolute fees, and instead rank investment options on their value added net of costs.