Practical analysis for investment professionals

portfolio management techniques


Three Lessons from the Bernie Madoff Scandal

Norb Vonnegut culls three lessons from HBO's recent Bernie Madoff biopic. Taken together, they serve as a renewed prompt for investors to consider low-cost index funds. After all, these funds are hardly exclusive. The world is vetting them constantly. So long as investors reinvest dividends and other cash flows back into the funds, the annualized returns are a real measure of investment performance: What you see is what you get. And what’s better than that?

Book Review: How to Make Money with Global Macro

Global macro is as much an exercise in navigating the political economy as it is an alternative investment strategy. Practitioners must recognize its limitations and remember that change is the one constant.

Eugene Fama: Stick with Basic Factors

Have the advances in technology, computing power, and data made the markets more efficient? It’s “not clear,” according to Nobel laureate Eugene Fama.

Top Five Articles from June: Blockchain, Shiller vs. Siegel, and Shooting Par

Larry Cao, CFA, discusses Campbell R. Harvey's definition of blockchain; Lauren Foster describes the continuing debate between Robert J. Shiller and Jeremy Siegel; Dougal Williams, CFA, suggests investors focus on shooting par in the investment market; Martin Fridson, CFA, reviews The End of Accounting and the Path Forward for Investors and Managers; and Mimmi Kheddache Jendeby provides some investing lessons from Epictetus, in the top Enterprising Investor posts from June.

Book Review: Your Complete Guide to Factor-Based Investing

Your Complete Guide to Factor-Based Investing is invaluable to practitioners who wish to design optimal portfolios. The authors define basic terms and discuss practical issues of implementation.

Beat the Field by Shooting Par

"What if, instead of trying to beat the market, investors focused on outperforming other investors by earning investing’s equivalent to par?" asks Dougal Williams, CFA.

Book Review: Efficiently Inefficient

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.

In Practice Summary: Social Responsibility (SR) Screens and Fund Performance

Does environmental, social, and governance (ESG) investing add or subtract value from investment portfolios? According to the findings of a trio of researchers, summarized in the new In Practice series, the answer is neither: Investors can both match index performance while also “doing good” for the environment and society.

The Stampede into ESG

The recent stampede of asset managers into environmental, social, and governance (ESG) investing is reminiscent of another time and another industry, says Christopher K. Merker, PhD, CFA.

Book Review: Even the Odds

A leading analyst and portfolio manager shares her approach to sensible risk taking, which can be applied to anticipating, evaluating, and responding to risks in business, investing, and everyday life.



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