Passive Funds: The Secret Ingredient to Smarter Active Portfolio Management
In today’s investment landscape, the debate between active and passive management often misses a critical point: they aren’t mutually exclusive. Incorporating passive funds into actively managed portfolios can enhance diversification,…
Beyond the Fed Model: Dissecting Equity Valuation Trends
With equity markets hitting record highs and the Fed Model signaling historically low valuation spreads, investors face a perplexing landscape. This post explores the intricacies of the equity risk premium,…
What Lies Beneath a Buyout: The Complex Mechanics of Private Equity Deals
Private equity (PE) buyouts are intricate financial maneuvers, often shrouded in complexity. By utilizing tiered acquisition structures and strategic vehicles, PE investors can unlock value while safeguarding investments. This article…
The Discounted Cash Flow Dilemma: A Tool for Theorists or Practitioners?
If your foresight is strong enough to build a reliable Discounted Cash Flow (DCF) model, you likely don’t need one. Why does this matter? Because genuine foresight is rare and…
A Guide for Investment Analysts: The Prehistory of the US Markets
Before the Civil War, the US financial markets operated in a world far removed from today’s fast-paced trading floors. Auctions were held only twice daily and newspapers served as a…
Balancing Innovation and Trust: Jason Hsu on Technology and the Future of the Investment Industry
I recently sat down with Jason Hsu, founder of Rayliant Global Advisors and chief economist of East West Bank, to discuss the evolution of factor investing, the challenges facing the…
Using ChatGPT to Generate NLP-Driven Investment Strategies
The financial world thrives on timely insights, accurate analysis, and forward-looking strategies. Over the years, natural language processing (NLP) has emerged as a precious tool for interpreting vast amounts of…
Aging Populations Demand Urgent Pension Reforms: Are We Prepared?
The world is aging at a much faster rate than we previously anticipated, even 10 years ago. Following the pandemic, life expectancies are continuing to rise around the world. That…
Research and Policy Center Top 10 Articles from 2024
In this Research Foundation book, edited by Alfonso Ricciardelli, CFA, and Philip Clements, CFA, practitioners introduce the key features of the alternative credit asset class. They spotlight leading transactions to evaluate…
Top 10 Posts from 2024: Private Markets, Stocks for the Long Run, Cap Rates, and Howard Marks
Asset owners have dramatically increased their allocations to private markets over the past two decades, driven largely by a mistaken belief that private debt and equity deliver returns that are…