Key Points: The efficient market hypothesis (EMH) states that stock prices fully reflect all available information. The EMH assumes investor rationality, offsetting mechanisms for irrational behavior, perfect competition, and no patterns in price changes. However, the EMH overlooks the manipulation and inaccuracy of information, uneven access to information, and investor behavior. The EMH’s definition of market efficiency is narrow and … Read More

“My basic point here is that neither the Financial Analysts as a whole nor the investment funds as a whole can expect to ‘beat the market,’ because in a significant sense they (or you) are the market . . . the greater the overall influence of Financial Analysts on investment and speculative decisions the less becomes the mathematical possibility of … Read More

Key Points: Factors are primary drivers of asset-class returns in the equity realm. Factor strategies provide exposure to rewarded risk factors in addition to market risk. The year 2022 saw a broad-based resurgence in factor performance. Factors such as Value, Momentum, and Low Investment outperformed their long-term averages. The energy sector played a significant role in driving factor performance. Macro … Read More

Key Points: Investors expect ESG funds to outperform their alternatives on ESG criteria. ESG funds have grown into a $400 billion market in the US. ESG funds typically have marginally higher ESG scores than their parent market indexes. Investors pay 40% higher fees on average for sustainable funds. When investors purchase environmental, social, and governance (ESG) equity index funds, they … Read More

Key Points Private commercial real estate (CRE) investing offers a diverse range of property types and investment theses. Private-market CRE investing allows for passive investing without the hassle of managing tenants and properties. The four main types of CRE investments are Multifamily, Office, Retail, and Industrial. Investors can participate in CRE investments at different levels in the capital stack, each … Read More

Retirement planning metrics, such as the probability of success, are flawed and do not provide a comprehensive view of a client’s retirement income situation. Monte Carlo projections, commonly used by financial advisors, demonstrate the uncertainty associated with funding retirement income and goals. Success-related metrics, like the probability of success, treat retirement goals as binary outcomes and do not consider the … Read More

How have different portfolio allocations performed throughout the world? Amid recent market turbulence, the worst year ever for US bonds, persistent inflation, and the looming threat of slower growth or even recession, this is a critical question, especially given the current debate about the efficacy of the traditional 60/40 portfolio. To answer it, we evaluate the performance of portfolios with … Read More

Key Points A History of Financial Technology and Regulation explores the role of technology in finance and its impact on various phenomena such as mutual funds and cryptocurrencies. The book provides an understanding of key concepts in financial regulation and how it has influenced historical financial crises. Oranburg divides US corporate finance history into three distinct eras: the First Era … Read More

Key Points: There is a belief that successful equity fund managers track interest rates and bond market trends. A study examined whether active equity fund managers follow bond markets by comparing their performance to in-family bond funds. The study found no conclusive evidence to support the theory that bond fund performance predicts equity fund performance. In the large-cap and international … Read More

– Institutional investors have a fiduciary duty to act in their beneficiaries’ best interests and earn sufficient investment returns. – University Pension Plan (UPP) believes that promoting healthy systems is essential for fulfilling its fiduciary duty and addressing climate change. – Collaborative initiatives among investors can help share expertise, leverage resources, and create systemic change. – Engaging with companies and … Read More