Risk Management Archives - Page 2 of 3

Investors should adopt inflation protection as inflation shows few signs of moderating anytime soon and central banks are tightening monetary policy aggressively. Treasury Inflation-Protected Securities (TIPS) can help position portfolios…

Asset Allocation…

ESG Ratings and Methodology

1 Jul 2021October 31, 2024

The interest in ESG investing creates greater demand for ESG data, ratings, rankings, and methodologies (Abhayawansa & Tyagi, 2021). Different ESG ratings, rankings, and methodologies produce significantly different assessments of…

Asset Allocation…

Advances in Investment Portfolio Management: November 12, 2020

12 Nov 2020November 5, 2024

Portfolio management refers to the selection of securities and their continuous shifting in the portfolio for optimizing the return and maximizing the wealth of an investor by analyzing the strengths,…

Due Diligence…

A Stable-Growth Environment: Value is Likely to Perform Better

23 Mar 2016

For many value-oriented investors, the last five years have been a challenging period given an elevated macroeconomic risk and bouts of volatility, backdrop of the low growth and structural change…

Fixed Income…

Macro Themes and the Implications: Time to Pay Attention to Global High Yield Strategy (I)

15 Mar 2016May 19, 2016

Key Macro Themes and the Implications Low inflation: Inflation is low but it does not mean inflation is zero. The slow growth in global economy keeps inflation subdued even as…

Alternative Investments…

Equity Strategies – Updated November 2015

25 Nov 2015November 26, 2015

As global economy converges to more stable rather than rapid growth, debt level and growth dynamics keep interest rates relatively low, and inflation remains muted in developed world, investors are…

Asset Allocation…

Target-Date Funds: Find a More Secure Path to Retirement

9 Jun 2014June 9, 2014

Asset allocation determines the blend of investments in each portfolio; the process seeks to maximize value based on one’s time horizon and tolerance for risk. A target-date fund offers specific…

Equity…

Choosing From Beta Strategies: Bettering Your Investments with a Smarter Exposure

17 May 2014May 19, 2014

Institutional investors have employed alternative weighting and factor-driven strategies for decades. In recent years, a growing variety of alternative beta strategies have come to market, as investment managers are pursuing…

Asset Allocation…

Strategic Asset Allocation for Individual Investors

4 Jan 2014

Strategic asset allocation is pivotal in executing investment plans. In developing strategic asset allocation, investors establish and specify their desired exposures systematic risk. Groups of assets of the same type are…

Asset Allocation…

Enhancing Performance via Tax Structuring

30 Nov 2013December 6, 2013

Astute management of investment-related taxes is a critical piece throughout the portfolio management process; tax consequences severely diminish investors’ spending power and long-term return. For wealthy families and individuals, the…

Portfolio Management…

How to Control Trading Costs

29 Nov 2013December 3, 2013

Controlling trading costs are complex because trading takes time, the demand for securities and other assets are not perfectly elastic, and the price impact of trades can affect the course…

Asset Allocation…

Why Market Timers Fail?

20 Nov 2013September 14, 2022

The stock market has seasonal effects and calendar anomalies, such as the so-called January effect, the Halloween effect, the best six-month strategy and the presidential election cycle. Seasonal and cyclical…

Asset Allocation…

Strategic Asset Allocation for Individual Investors

11 Nov 2013

In developing strategic asset allocation, investors establish exposures to the asset classes agreed on their Investment Policy Statement (IPS); strategic asset allocation integrates investors’ financial objectives, risk tolerance, and investment…

Asset Allocation…

Optimization Revisit

10 Nov 2013November 26, 2013

In portfolio management, optimization is a mathematical process of assigning the proportions of various asset classes or investment styles to be held in a portfolio, in a way as to…

Asset Allocation…

The Importance of Asset Allocation

9 Nov 2013

Historically, common stock was deemed “per se imprudent.” The experience of the 1930s, however, proved that bonds could be risky as well. In today’s investment practices, the New Prudent Investor…

Alternative Investments…

Fund of Hedge Funds, Manager Selection, and Due Diligence

22 Oct 2013November 14, 2013

One of the main reasons that more and more institutional investors, particularly endowments and foundations, include hedge funds in their portfolios is the expected diversification benefit, given the existing array…

Alternative Investments…

An Event-Driven Strategy: Merger Arbitrage

22 Oct 2013October 23, 2013

Event-driven strategy seeks to invest in opportunities associated with corporate transactions such as consolidations, acquisitions, recapitalizations, bankruptcies, and liquidations. Merger arbitrage event-driven managers employ strategies that can capitalize on valuation…

Alternative Investments…

A Relative Value Strategy: Convertible Arbitrage

22 Oct 2013

Hedge funds deploying relative value strategies seek to take advantage of “discrepancies” in price between securities or the overall market. Within the relative value category, there are sub-strategies, and convertible…

Alternative Investments…

A Global Macro Strategy: Managed Futures

22 Oct 2013October 28, 2013

Hedge funds utilizing a global macro strategy take positions in equity, fixed income, or currency markets in anticipation of global macroeconomic events to generate risk-adjusted returns. Global macro fund…

Alternative Investments…

Hedge Fund Landscape

22 Oct 2013November 26, 2013

The first hedge fund emerged in 1949 when sociologist Alfred Winslow Jones and his four friends formed an investment partnership. The first reference to a hedge fund appeared in a…

Alternative Investments…

Private Equity Portfolio Management

20 Oct 2013October 20, 2013

Portfolio Management is a process of making investment decisions about asset mix, policy, and buy/sell disciplines in order to meet individual and institutional investors’ specified financial objectives, risk tolerance, investment…

Alternative Investments…

Endowment Spending and Purchasing Power Preservation (IV): Real Estate

15 Oct 2013October 28, 2013

Potential Benefits of Real Estate Investments Similar to the return patterns of other real assets, real estate returns also have low correlations with traditional investment vehicles, which adds a diversification…

Alternative Investments…

Endowment Spending and Purchasing Power Preservation (II): Timberland

14 Oct 2013October 28, 2013

Investments in natural resources, such as oil and gas, farmland, timberland, and metals and mining provide protection against unanticipated inflation, high and visible cash flow, and opportunities to exploit inefficiencies.…

Alternative Investments…

Endowment Spending and Purchasing Power Preservation (I): Commodities

13 Oct 2013October 14, 2013

Endowment Spending Policy One of the most difficult challenges that any investment committee member of endowments and foundations face is choosing a spending policy that will best balance two competing…

Asset Allocation…

Theory Versus Practice: Rethink Your Portfolio Optimizers

9 Oct 2013October 10, 2013

Portfolio optimization is a mathematical process of assigning the proportions of various asset classes or investment styles to be held in a portfolio, in a way as to construct the…

Asset Allocation…

Balancing Risk and Reward: Asset Allocation

8 Oct 2013October 16, 2013

The Importance Asset Allocation Many portfolio managers believe that asset allocation is one of the most important decisions that investors make: From a portfolio design standpoint, portfolio theory asserts that…

Portfolio Management…

Where Would You Place Your Trust – Wall Street, Main Street, or University Street?

2 Oct 2013October 2, 2013

In my experience in the investment business, I have found three basic choices. You can trust Wall Street (financial media, investment banks, insurance companies, brokerage houses, mutual fund families), Main…

Alternative Investments…

Approaches to Tail Risk Hedging in The Endowment Model

1 Sep 2013January 5, 2026

In the Foreword of David Swensen (2009), Charles Ellis commented that Yale was good at playing defense, because the endowment was built to withstand the inevitable storms that face capital…

Equity…

Earnings Manipulation Detection and The M-Model

30 Jul 2013July 31, 2013

Management quality is one of the most important elements in choosing an investment; management is incentivized to hit the target and increase long-term earnings, in reality, this does not necessarily…

Fixed Income…

Unconstrained Bond Funds and Multi-Sector Bond Funds

18 Jun 2013August 26, 2025

*Data Source: Barclays Global Family of Indices, May 2013 Unconstrained Bond Funds Also called “go-anywhere” bond funds, unconstrained bond funds were introduced several years ago, when many U.S. fixed income…

Category: Risk Management

Positioning Portfolios for An Environment of High Inflation

ESG Ratings and Methodology

Advances in Investment Portfolio Management: November 12, 2020

A Stable-Growth Environment: Value is Likely to Perform Better

Macro Themes and the Implications: Time to Pay Attention to Global High Yield Strategy (I)

Equity Strategies – Updated November 2015

Target-Date Funds: Find a More Secure Path to Retirement

Choosing From Beta Strategies: Bettering Your Investments with a Smarter Exposure

Strategic Asset Allocation for Individual Investors

Enhancing Performance via Tax Structuring

How to Control Trading Costs

Why Market Timers Fail?

Strategic Asset Allocation for Individual Investors

Optimization Revisit

The Importance of Asset Allocation

Fund of Hedge Funds, Manager Selection, and Due Diligence

An Event-Driven Strategy: Merger Arbitrage

A Relative Value Strategy: Convertible Arbitrage

A Global Macro Strategy: Managed Futures

Hedge Fund Landscape

Private Equity Portfolio Management

Endowment Spending and Purchasing Power Preservation (IV): Real Estate

Endowment Spending and Purchasing Power Preservation (II): Timberland

Endowment Spending and Purchasing Power Preservation (I): Commodities

Theory Versus Practice: Rethink Your Portfolio Optimizers

Balancing Risk and Reward: Asset Allocation

Where Would You Place Your Trust – Wall Street, Main Street, or University Street?

Approaches to Tail Risk Hedging in The Endowment Model

Earnings Manipulation Detection and The M-Model

Unconstrained Bond Funds and Multi-Sector Bond Funds