Articles in - Month: December 2019

What Is an Asset Class?

What Is an Asset Class?

Today, diversification and alternative returns are our top portfolio concerns. Why? Because low interest rates may have driven valuations of stocks,...

Book Review: Financial Econometrics

Financial Econometrics: Models and Methods. 2019. Oliver Linton. Cambridge University Press. Investing is increasingly quantitative, with a close link between academic financial research and employable investment strategies. Practical understanding of econometrics is...

Aswath Damodaran on the Disruption Dilemma

There’s a common saying, often mistakenly described as a Chinese curse: “May you live in interesting times.” Aswath Damodaran puts a modern spin on it to characterize our current era: “We live in disruptive times.” Disruption is everywhere. Upstarts are...

Letters to Tony: What Is a Fair Fee for Financial Advice?

This article is the first in my new Letters to Tony series. Tony is a client of mine who owns a barbershop in New Jersey. The goal of these letters is to do what too often advisers fail to do: Explain investment topics in simple, no-nonsense language. Dear Tony:...

Investing in the Age of Engagement

“There’s been a fundamental shift in the way investors are thinking about the purpose of their investments,” Heather Brilliant, CFA, told the audience at the Women in Investment Management 2019 Conference in Montréal. “Whether it’s taking on more objectives than just...

Global Pension Funds: The Coming Storm

The Global Pension Funds Crisis Tens of thousands of Dutch workers took to the streets in the spring of 2019 to protest a proposal to raise the retirement age. Then, in October, the two largest Dutch pensions funds, ABP and PFZW, warned that their funding ratios were...

Private Real Estate Fund Categories: A Risk/Return Assessment

Private real estate funds generally fall into one of three categories. Based on increasing levels of risk and, accordingly, expected returns, a fund’s strategy is designated core, value-added, or opportunistic. But is this categorization system accurate? Are the...