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Ashby Monk on Alternative Data’s Potential

Alternative data has a lot in common with organic food, Ashby Monk, PhD, told the audience at the 2018 Financial Analysts Seminar. “Or, as your grandparents called it, ‘food,’” he joked. “Before it was alternative data, it was just data.” As the executive and research director of the Global Projects Center at Stanford University, Monk studies […]

Continual Learning: Will AI Give Gray Hair a Pay Cut?

Albert Einstein was right if he actually said, “The only source of knowledge is experience.” The quote sums up the frustration of every ambitious young analyst. The lesson? Gray hair will prevail. There simply is no substitute for experience in the investment business. Right? Well, perhaps not anymore. A new technology might be about to give […]

Hiring and Firing Portfolio Managers: Process and Outcomes

Robert G. Hagstrom, CFA, is the author of Warren Buffett: Inside the Ultimate Money Mind. He recently sat for a Take 15 Podcast interview with Lauren Foster, “Warren Buffett and the ‘Money Mind.’” The Logic of Investment Failure At the beginning of each new year, financial advisers and their clients step back and evaluate the performance of […]

Big Data and Artificial Intelligence in Investment Management: FAQs and Answers

A technological advance can impact — even transform — the global economy let alone a particular sector. The steam engine in the first industrial revolution, electricity in the second, and internet technology in the third fundamentally changed human history.  Today, big data and artificial intelligence (AI) have the same transformative potential. When it comes to big data […]

Building Investor Resilience in a Downturn

Our Long-Term Capital Market Assumptions (LTCMAs) at J.P. Morgan Asset Management are structurally optimistic, but we cannot fail to acknowledge the potential short-term pain that may come with the end of the current cycle. How can investors ensure their portfolios survive the short term so they can thrive in the long term? The answer would […]

ESG Investing: Too Good to Be True?

Good vs. Bad Corporates BlackRock is aggressively launching products with high environmental, social, and governance (ESG) ratings. The firm’s CEO, Larry Fink, recently predicted that assets under management (AUM) in the ESG category will grow from the current $25 billion to $400 billion in 2028. Investing in good corporates is intuitively appealing. Who doesn’t want […]

The Intangible Valuation Renaissance: Five Methods

Antonella Puca, CFA, CIPM, CPA, is the author of Early Stage Valuation: A Fair Value Perspective. Intangible assets are increasingly critical to corporate value, yet current accounting standards make it difficult to capture them in financial statements. This information gap can affect valuations for the worse. Today, valuations based on simple accounting metrics from corporate […]

Best Does Not Mean Optimal

I recently had yet another discussion with an investment professional who attempted to describe how they are trying to build the optimal portfolio for their clients. In this case, the conversation was with an investment consultant, but I have also had them with institutional portfolio managers and wealth managers. What always irks me is how […]

Robert J. Shiller on Bubbles, Reflexivity, and Narrative Economics

Robert J. Shiller has shown remarkable prescience over the years. In Irrational Exuberance, he successfully called the dot-com bubble. Less than 10 years later, in the run-up to the financial crisis, he issued similarly accurate warnings about the bloated housing market. Of course, Shiller is known for more than just his forecasting abilities. The cyclically adjusted […]

Analyzing Mr. Market’s Sense of Priority

“Management is doing things right; leadership is doing the right things.” The legendary management consultant, educator, and author Peter Drucker helped coin this now well-known phrase. And since we all want to be investment leaders rather than mere investment managers, we should look for ways of doing the right things for our portfolios. That’s where sector […]

Adapting to Disruption: The Investment Industry’s New Normal

For the first time ever, the CFA Institute European Investment Conference will be held entirely online. With interactive sessions analyzing the most critical issues in the financial markets, the conference is a must-attend event for portfolio managers, analysts, CIOs, and CEOs. Join us 17–18 November 2020. Asset managers are intimately familiar with the challenges facing the […]

Top 10 Posts from 2018: Chart Crimes, Political Divides, AI, and the Skill Ratio

Posted In: Alternative Investments, Behavioral Finance, Careers, Drivers of Value, Economics, Future States, History & Geopolitics, Leadership, Management & Communication Skills, Performance Measurement & Evaluation, Philosophy, Portfolio Management, Quantitative Methods, Standards, Ethics & Regulations (SER) 1. The Seven Kinds of Asset Owner Institutions There’s never been a better time to be an end investor. Thomas Brigandi […]