risk management
What is Ensemble Active Management (EAM) and how can it help active managers outperform their benchmarks after fees?
The End of Theory by Richard Bookstaber is relevant to anyone working in the financial industry.
This work is effectively two books in one: (1) an account of the rise and internationalization of the renminbi and of its prospects for continued ascendancy over the near term and the medium term and (2) a concise description of the various vehicles for investing in Chinese assets.
“We need to make investment plans that adapt to market conditions and also take into account our own personal frailties,” says Andrew W. Lo.
The author proposes debiasing techniques that can improve the practice of operational risk management by countering behavioral biases.
Eleven rules for equity valuations from James J. Valentine, CFA, as described by Paul McCaffrey; suggestions for evidence-based thinking in retirement plans by Isaac Presley, CFA; and Sloane Ortel's examination of how Amazon fits into the active vs. passive debate are among the top EI posts from November.
You arrive at your retirement day with a sizeable retirement fund. But then what? Some theorize that this is the point when there is the greatest risk of failure in your lifelong savings strategy. This edition of In Practice summarizes an innovative solution to this dilemma curated from new research from Cass Business School, London.
Palm oil is an inexpensive and highly versatile vegetable oil derived from the fruit of the oil palm tree. And with annual sales of around $50 billion, palm oil is also a big business, albeit one with oversized risks. Gabriel Thoumi, CFA, FRM, and Kalev Leetaru use data visualizations to better understand the sector's interconnections.
An unorthodox solution to the US retirement crisis from Sloane Ortel; a discussion of Nobel laureate Richard H. Thaler's contributions to economics by Lauren Foster; and an analysis of the value of self-awareness by Jim Ware, CFA, are among the top EI posts from October.
"We don't pay enough attention to the big obvious problems that are in front of us," says Michele Wucker, the author who coined the term gray rhino. Investors should learn to identify four kinds of gray rhinos: charging, recurring, meta, and unidentified, she explains in an interview with Nathan Jaye, CFA. Each type can require different solutions.