Category Archives: investing

What they Used to Teach You at Stanford Business School

Chris Wyser-Pratte, who got his MBA from Stanford in 1972 and then spent the next 23 years as an investment banker, sent me the following note last night. I’m reprinting it here with his permission: I learned exactly seven things … Continue reading

Posted in banking, education, investing | 3 Comments

10 Questions to Ask Your Fund-of-Funds Manager

If you were a client of Access International Advisors, which lost a lot of money with Bernie Madoff, then you would have been told that they "conducted thorough due diligence when selecting outsider fund managers". Which might have been reassuring, … Continue reading

Posted in hedge funds, investing | 1 Comment

Quants: What Are They Doing These Days?

I was talking about quant funds this afternoon, and got to wondering what on earth they’re doing these days, given that their m.o., up until say the summer of 2007, was to find trading ideas, backtest them, try them out … Continue reading

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The Problem of Regaining Trust

Eric Falkenstein sums up 2008 through a ratings-agency lens: I think 2008′s problem was mainly because after the rating agencies were exposed as making an error on their AAA and AA ratings, all investors viewed such securities skeptically. What was … Continue reading

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A Weird Argument for Index Funds

Daniel Solin has a column at BloggingStocks extolling the virtues of index funds, which is all well and good. But the argument he uses to get there is odd: All information about listed companies is public. It is widely and … Continue reading

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When Mutual Funds Reopen for Business

Barbara Kiviat has a piece today on how ordinary schlubs like you and me now have a Rare Opportunity to buy mutual funds which until recently were closed to new investors: It’s been years since anyone without an existing account … Continue reading

Posted in investing | 1 Comment

Great Moments in Punditry, Felix Salmon Edition

Me, in July 2007, on the subject of the IPO of Kingdom Holdings, Prince Alwaleed bin Talal’s investment vehicle: Fancy investing in an extremely successful hedge fund without paying 2-and-20? … Kingdom could be the next Berkshire Hathaway (maybe it … Continue reading

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Yes, Fund Managers Really Do Underperform

Last summer, Baruch, Zubin, and I got into a discussion about the oft-cited statistic that 75% of fund managers underperform their benchmark. Is it true? Baruch concluded that no one really knows where it came from: "it seems the 75% … Continue reading

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Contrarian Investing

Baruch has a corker of a post over at Ultimi Barbarorum on hedge funds, and why it is that they’ve unravelled so spectacularly this year despite largely escaping the bursting of the dot-com bubble unscathed. Go read the whole thing, … Continue reading

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What’s Happened to the Equity Risk Premium?

Jasper asks, in the comments: Can you comment generally on how much less risky it is to invest in the stock market now than it was 3 months ago? In other words, now is obviously a better time to invest … Continue reading

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