August 2012 - Fundopedia

One Man’s Junk May Be Another’s Treasure – Junk Bonds Market

27 Aug 2012August 26, 2025

Many companies rated below investment grade are creditworthy enough and should have access to the new issue market. Weaker companies simply could issue new bonds at higher coupons. On one…

Equity

Equity Funds: Larger Cap or Smaller Cap?

17 Aug 2012August 26, 2025

Equity fund investors make stock purchases based on the belief that past returns are indicators of future performance, but whether size matters has been underestimated, especially for mutual fund investors,…

Alternative Investments…

Allocation in Hedge Fund of Funds

13 Aug 2012August 26, 2025

One of the main reasons that institutional investors include hedge funds in their portfolios is the expected diversification benefits with existing array of investment opportunities. In the U.S., institutions such…

Behavioral Finance…

Time Series Momentum, Cross-Sectional Momentum, Market Return Drivers

10 Aug 2012July 20, 2023

Traditionally, annualized return volatility is believed to decrease over long periods because of mean reversion. In fact, stocks are more volatile over long periods because of parameter uncertainty. In order…

Alternative Investments…

Endowment Model, Liquidity Stress Test, Liquidity Schedule

3 Aug 2012July 20, 2023

All investment portfolios should be individually structured to meet clients’ objectives, cash flow requirements, and their tolerance for risk. Similar to diversification across asset classes, market capitalization, and geographic exposures,…