Book description
Debunking outdated and inaccurate beliefs about investment management and reveals the new realities of the post-modern financial markets
There have been a lot of big changes in the investment world over the past decade, and many long-cherished beliefs about the structures and performance of various investments no longer apply. Unfortunately the news seems not to have reached many thought leaders and investment professionals who persist in trying, and failing, to apply 20th-century thinking to 21st-century portfolio management. Nowhere is this more true than when it comes to the subject of alternative investments. Written by an all-star team of investment management experts, this book debunks common myths and misconceptions about most classes of alternative investments and offers valuable advice on how to develop investment management and asset allocation strategies consistent with the new realities of the ever-changing world of alternative investments.
Covers most alternative asset classes, including private equity, real estate, managed futures, hedge funds, commodity indices, and more
Debunks long-held assumptions about the structure and performance of various investment classes that continue to dominate the industry
Explores the implications for investment managers of the proliferation of international marketable securities and global financial markets
Provides an overview of both the micro and the macro aspects of each alternative investment class
Table of contents
- Cover
- Title Page
- Series Page
- Copyright
- Dedication
- Preface
- Acknowledgments
-
Chapter 1: Investment Ideas: Evolution or Revolution?
- In the Beginning
- The Beginning of Information Transparency
- New Markets, New Products, and the Evolution of Modern Investment
- New Opportunities Create New Risks
- The Market Is Not Efficient for Everyone
- A Personal View of Modern Investment
- What Every Investor Should Know
- Myths and Misconceptions of Modern Investment
-
Chapter 2: Equity and Fixed Income: The Traditional Pair
- A Brief Review
- Equity and Fixed-Income Styles and Benchmarks
- Basic Sources of Risk and Return
- Performance: Fact and Fiction
- Return and Risk Characteristics
- The Myth of Average: Equity and Fixed-Income Return in Extreme Markets
- Annual Performance
- Performance in 2008
- Special Issues: Making Sense Out of Traditional Stock and Bond Indices
- A Personal View of Equity and Fixed-Income Analysis
- What Every Investor Should Know
- Myths and Misconceptions of Equity and Fixed Income
-
Chapter 3: Hedge Funds: An Absolute Return Answer?
- What Are Hedge Funds?
- Investing in Hedge Funds
- Hedge Fund Styles and Benchmarks
- Basic Sources of Return and Risk
- Performance: Fact and Fiction
- Return and Risk Characteristics
- The Myth of Average: Hedge Fund Index Return in Extreme Markets
- Hedge Fund Annual Performance
- Performance in 2008
- Making Sense Out of Hedge Fund Indices
- Making Sense Out of Alternative Approaches to Investing in Hedge Funds
- A Personal View: Issues in Hedge Fund Investment
- What Every Investor Should Know
- Myths and Misconceptions of Hedge Funds
-
Chapter 4: Managed Futures: A Zero-Sum Game?
- What Are Managed Futures?
- Investing in Managed Futures
- Managed Futures Styles and Benchmarks
- Basic Sources of Return and Risk
- Performance: Fact and Fiction
- Return and Risk Characteristics
- The Myth of Average: Commodity Trading Advisor Index Return in Extreme Markets
- Commodity Trading Advisor Annual Performance
- Performance in 2008
- Making Sense of Commodity Trading Advisor Performance
- Making Sense Out of Alternative Approaches to Investing in Commodity Trading Advisors
- Commodity Trading Advisor Investable Indices
- A Personal View: Issues in Managed Futures Investment
- What Every Investor Should Know
- Myths and Misconceptions of Managed Futures
-
Chapter 5: Commodities: An Ever-Changing Balance
- Investing in Commodities
- Commodity Styles and Benchmarks
- Basic Sources of Return and Risk
- Performance: Fact and Fiction
- Return and Risk Characteristics
- The Myth of Average: Commodity Index Return in Extreme Markets
- Commodity Annual Performance
- Commodity Subsector Index: Annual Commodity Performance
- Performance in 2008
- Special Issues in Commodity Investment
- Commodities as an Inflation Hedge
- Comparison between Direct and Equity-Based Commodity Investment
- Comparison between Equity-Based Mutual Fund and Exchange-Traded Fund Commodity Investment
- A Personal View: Issues in Commodity Investment
- What Every Investor Should Know
- Myths and Misconceptions of Commodity Investment
-
Chapter 6: Private Equity: Its True Value?
- Investing in Private Equity
- Private Equity Styles and Benchmarks
- Basic Sources of Risk and Return
- Performance: Fact and Fiction
- Return and Risk Characteristics
- The Myth of Average: Private Equity Index Return in Extreme Markets
- Private Equity Annual Performance
- Performance in 2008
- Issues in Private Equity Investment
- Private Equity Indices
- Alternatives to Investment in Private Equity
- A Personal View: Issues in Private Equity Investment
- What Every Investor Should Know
- Myths and Misconceptions of Private Equity
-
Chapter 7: Real Estate: The New World
- Investing in Real Estate
- Housing or Residential Real Estate Properties
- Private and Public Commercial Real Estate Debt
- Real Estate Styles and Benchmarks
- Basic Sources of Risk and Return
- Performance: Fact and Fiction
- Return and Risk Characteristics
- The Myth of Average: Real Estate Investment Trust Index Return in Extreme Markets
- Real Estate Annual Performance
- Performance in 2008
- The U.S. Real Estate “Bubble” and the Subprime Mortgage Crisis of 2007 to 2010
- Special Issues in Real Estate
- A Personal View: Issues in Real Estate Investment
- What Every Investor Should Know
- Myths and Misconceptions of Real Estate
-
Chapter 8: Asset Allocation: The Simple Way and the Hard Way
- The Why and Wherefore of Multiple Asset Allocation Approaches
- Overview and Limitations of the Existing Asset Allocation Process
- Asset Allocation in Traditional and Alternative Investments: A Road Map
- Return and Risk Attributes and Strategy Allocation
- The Myth of Average: Asset Allocation in Extreme Markets
- Alternative Asset Allocation Approaches
- A Personal View: Issues in Asset Allocation
- What Every Investor Should Know
- Myths and Misconceptions in Asset Allocation
- Chapter 9: Risk Management: An Oxymoron
- Chapter 10: In Conclusion
- Bibliography
- About the Authors
- Index
Product information
- Title: Post Modern Investment: Facts and Fallacies of Growing Wealth in a Multi-Asset World
- Author(s):
- Release date: November 2012
- Publisher(s): Wiley
- ISBN: 9781118432235
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