CFA Institute Portfolio Management

Agency Costs, Mispricing, and Ownership Structure

Thu, 25 Apr 2013 12:15:30

In corporate reorganizations, when sufficient opportunity is available in the form of equity mispricing, parent companies often seize advantages and offer fairly bleak prospects for outside investors.

The Fundamentals of Commodity Futures Returns

Thu, 25 Apr 2013 12:20:49

Over long periods of time, holders of commodity futures can earn a positive risk premium. The level of that premium varies with inventories; the highest expected return is from commodities that are in short supply. High returns are also expected from ...

Do Stock Prices Influence Corporate Decisions? Evidence from the Technology Bubble

Thu, 25 Apr 2013 12:25:28

Using data from the technology bubble, the authors argue that misvaluations can affect corporate investment, issuance, and savings policies. They find that managers do not systematically issue overvalued stocks and invest in ways that transfer wealth ...

Taking Stock: Long/Short Hedge Funds and "Equity Replacement"

Mon, 29 Apr 2013 13:22:55

The authors posit that by removing some of the constraints facing long-only equity managers, long/short equity hedge funds may provide more efficient exposure to the stock market. This paper examines the performance of long/short hedge funds, defines the ...

Where Credit is Due: The Opportunity in "Alternative" Fixed Income

Mon, 29 Apr 2013 13:21:41

An overview of the advantages of "alternative" fixed income investments in overcoming the major issues confronted by fixed income investors currently.

The Promise of Abenomics

Mon, 29 Apr 2013 13:45:00

Nobel Prize laureate Joseph Stiglitz assesses this question: To what extent can ?Abenomics? (the economic initiatives geared for bringing Japan out of the decades long deflation and slow growth) claim credit for the recent surge in domestic confidence in ...

The Pope of Japanese Finance

Mon, 29 Apr 2013 13:49:50

Author Yuriko Koike equates the election of the Bank of Japan's governor to the conclave election the Pope.

Assessing the Quality of Asian Stock Market Indices

Mon, 29 Apr 2013 13:54:05

Though indices are widely accepted in Asia, either when assessing performance of active managers or when implementing passive strategies, relatively little analysis is done from an Asian perspective. This study, performed by four researchers at ...

The Golden Rule? Thoughts on Gold as an Investment

Mon, 29 Apr 2013 14:28:56

Aswath Damodaran assesses the asset value of gold and its role in an investment portfolio.

Active Share Adds Value in Search for Alpha

Mon, 29 Apr 2013 16:35:31

By quantifying a fund?s degree of active management, active share provides a means of distinguishing funds that have the potential for outperformance from those that are likely to deliver index-like returns. When active share is used in conjunction with ...

Investment Management Fee Structures

Mon, 29 Apr 2013 16:36:01

In light of so much sophistication in the investment management business today, it is somewhat surprising how crude and poorly functioning the area of fee structure remains. Yet, fee structure decisions are vital because they direct the behavior and ...

Present and Emerging Risks to the Gold Trade

Tue, 30 Apr 2013 10:26:30

The authors posit that gold prices are driven both by global monetary policy and emerging markets consumers. Given the cyclical and structural challenges facing the Chinese and Indian economies, both big consumers of gold, the authors believe the risks ...

The Case for Index Fund Investing

Tue, 30 Apr 2013 10:32:18

This paper explores the theory behind indexing as an investment strategy and provides evidence to support its use in investor portfolios.

Why Shadow Banking Is Yet to Destabilize China's Financial System

Tue, 30 Apr 2013 11:02:17

This article provides a rigorous overview of shadow banking in China. Several recent high-profile incidents, such as those involving CITIC Trust, Industrial and Commercial Bank of China, and Hua Xia Bank have highlighted how risky the underlying assets ...

Update to the Update: The Attack on Gold

Tue, 30 Apr 2013 11:08:06

Dr. Paul Craig Roberts, former assistant secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal, reviews and assesses the crash of gold and silver prices in mid-April 2013.

Smart Beta 2.0

Tue, 30 Apr 2013 11:18:31

This research, presented by EDHEC-Risk Institute, shows that existing ?smart beta? market indexes have inherent systematic and specific risks that are neither documented nor explicitly controlled by their sponsors or promoters. Initial results of the ...

Weimar 2013?

Fri, 03 May 2013 09:57:22

This article compares the situation of the Weimar Republic in Europe in the early part of 1900 to the current situation in the United States and Europe.

Asia 2050: Realizing the Asian Century

Fri, 03 May 2013 10:03:47

This report provides a long-term perspective of the Asia region as a whole and attempts to help build consensus on a vision and a strategy for Asia?s potential rise among the global community of nations between now and 2050.

Asian Bond Markets Development and Regional Financial Cooperation

Fri, 03 May 2013 10:11:16

This report provides an outline and synopsis of the Asian Bond Market Development and Regional Financial Cooperation Project.? With the goal of creating a more vibrant Asian economy through the private sector and closer regional cooperation, it ...

The Great Inflation: The Rebirth of Modern Central Banking

Fri, 03 May 2013 10:47:32

This report focuses on understanding the causes of the Great Inflation, a period of rising inflation in many nations during the 1970s and 1980s. The immediate causes of this period?s rise in inflation have been the subject of many studies and debates ...

Pre-Disclosure Accumulations by Activist Investors: Evidence and Policy

Fri, 03 May 2013 11:01:38

The authors examine regulatory disclosures by activist investors to determine if an acceleration of the timing of disclosures of large blocks of stock is warranted due to changes in trading technology. They demonstrate that accelerating the timing of ...

Going Where Opportunity Is Next

Wed, 08 May 2013 10:20:33

The traditional asset classes of stocks and bonds are likely to see lower real returns in the coming years. Institutional investors should, therefore, take the long view and pay less attention to investment categories and more to return on risk. ...

Bargain Hunting in Small-Cap Stocks

Wed, 08 May 2013 10:21:02

Successful investing requires a mix of art and science, flexibility without slavish devotion to a particular style, patience, and good fundamental analysis. The author reviews two case studies of small-cap stocks to illustrate how each of these factors ...

Fixed-Income Portfolio Benchmarks: Time for Reevaluation

Wed, 08 May 2013 10:25:30

The fixed-income investment industry has placed excessive focus on alpha instead of total return and on tracking error instead of portfolio standard deviation. As a result, benchmarks and relative performance may not be appropriate for investors with ...

Central Bank Policy and Portfolio Construction

Wed, 08 May 2013 15:35:30

?Central banks have created a much more challenging environment for investors because the yields on traditional ?risk free? assets, used to balance or reduce risk in portfolios, are now at or near record lows.?

Profit, Profession, and Service

Wed, 08 May 2013 15:50:48

George Schwartz, CFA, invests according to moral principles?and free cash flow.

China's Hidden Risks: Shadow Banking and U.S. Delisting

Tue, 14 May 2013 10:22:12

In this article, the author outlines the key risks of Chinese investments. The recent dispute between China and the United States over company auditing standards could result in a significant number of U.S. - listed Chinese companies being delisted. ...

Apologia Pro Vita Sua

Tue, 14 May 2013 10:31:42

In this article Derman reflects on the moral dimensions of the derivatives business. Registration/subscription may be required to access this content.

Audit Committee Characteristics and Firm Performance during the Global Financial Crisis

Thu, 16 May 2013 08:30:31

The authors assess the impact of audit committee composition on share price returns of Australian stocks during the global financial crisis. They find that smaller, more experienced audit committees tend to be associated with better performance than ...

Home Bias and Cross Border Taxation

Thu, 16 May 2013 08:35:31

The role of cross-border taxation in equity home bias in international equity flows has been unclear. Dividend imputation, attributing tax credits to shareholders, is one of the impediments to cross-border equity flows. Tax credits for foreign taxes paid ...

Capitalist Development and Economism in East Asia: The Rise of Hong Kong, Singapore, Taiwan, and South Korea

Tue, 07 May 2013 15:07:31

This book by author Kui-Wai Li, discusses the economic development of the four East Asian economies since 1950 by taking a conceptual approach. Li summarizes and reconsiders many of the arguments and findings that supported and explained the economic ...

Australia Investment Conference

Fri, 10 May 2013 05:18:51

Against the backdrop of a lingering euro zone crisis, Australia enters a new era marked by the heightened risk of weakness among its major trading partners ? uncertainty surrounding China?s economic outlook and fragility of U.S. economic recovery. This ...

Credit Market Since the Crisis

Wed, 24 Apr 2013 15:49:37

Credit markets are among the most complex and largest financial markets in the world with a total outstanding notional of over USD 40 trillion. The global financial crisis had its origins in the credit markets and not surprisingly regulators and ...

Cash Management Seminar - Day Two

Wed, 24 Apr 2013 15:56:35

We continue our discussion of different practical aspects of building an effective cash management set-up.

A Risk-Based Asset Allocation Framework for Unstable Markets

Fri, 03 May 2013 14:52:27

From the 2012 Asset Allocation for Private Clients conference, Ashvin B. Chhabra discusses various portfolio strategies to consider in the face of an unstable market. He details creating a comprehensive, goal-based risk allocation program, as well as ...

The Bellwether Series 2013: Japan

Tue, 30 Apr 2013 11:56:40

This event will occur on Wednesday, 22 May 2013 from 8:45 a.m. to 6:00 p.m. JST. The Bellwether Series 2013: Japan event is expected to gather strategic finance decision makers, including senior policymakers, business leaders, and thought-leaders to ...

CFA China Beijing CE Seminar: What Investors Really Want: Lessons from Behavioral Finance

Fri, 03 May 2013 15:09:40

We are pleased to invite Mr. Meir Statman, Glenn Klimek Professor of Finance at the Leavey School of Business, Santa Clara University and visiting professor at Tilburg University in the Netherlands, to talk about what investors really want.

Is High Yield Due For a Fall?

Fri, 03 May 2013 15:10:48

Our speaker is Martin Fridson, CFA, CEO, Fridsonvision LLC. Over a 25 year span with brokerage firms including Salomon Brothers, Morgan Stanley, and Merrill Lynch, he became known for his innovative work in credit analysis and investment strategy.

IACPM 2013 Spring Conference

Wed, 01 May 2013 15:40:12

The IACPM 2013 Spring Conference is a two day conference with one or two plenary sessions each day followed by stream sessions in two to three parallel streams.IACPM conferences are typically attended by 200 to 300 credit portfolio management ...

29th Annual Insurance Conference

Fri, 03 May 2013 11:17:40

Standard & Poor?s Ratings Services Annual Insurance Conference is one of the industry?s must-attend events, where company executives and investment/credit professionals come together to share perspectives and analysis of current trends and issues in ...

Investment Opportunities from Japan to India in a Social and Cultural Context

Tue, 14 May 2013 10:57:38

India offers great investment opportunities to the world. In the pursuit of development in areas like energy, water, infrastructure, and manufacturing, there is a particular possibility of collaboration with Japan.

Classifying Assets for Strategic and Tactical Allocation: Geneva

Tue, 14 May 2013 10:58:12

Four primary asset classes are identified, each of which excels in a different combination of above- or below- average growth and inflation.? Specific assets are then classified according to which of these four asset classes they most closely resemble, ...

Classifying Assets for Strategic and Tactical Allocation: Zurich

Tue, 14 May 2013 10:58:48

Four primary asset classes are identified, each of which excels in a different combination of above- or below- average growth and inflation. Specific assets are then classified according to which of these four asset classes they most closely resemble, ...

Why is the Recovery so Slow?

Tue, 14 May 2013 11:04:21

Barry Bannister will provide the necessary antidote to the native bearishness as the market challenges all-time highs in the S&P 500. Yes, the US and the world have problems, and new highs may reverse, but things are not as bad as they were in early ...

Predicting Risk for Short Investment Horizons

Tue, 14 May 2013 11:08:16

In this presentation, Jose Menchero discusses the construction of factor models for predicting risk at short investment horizons. He describes calibration of model parameters and tests of forecasting accuracy. He also discusses the effectiveness of a ...

Comparable Analysis by the Marquee Group

Tue, 14 May 2013 11:08:50

This course is focused on providing an understanding of comparables-based valuation analysis which is an essential component in valuing companies and assets. Comparables valuation involves both technical skills and solid business judgment.

Investment Banking

Tue, 14 May 2013 11:10:48

This course is designed to provide an overview of investment banking. Key areas it will cover include: capital raising, valuation methodologies, mergers and acquisitions, and an overview of other corporate restructurings such as leveraged buyouts.

Views for the Second Half of the Year

Wed, 15 May 2013 13:01:31

Giuseppina Parini, Head of Strategy and Research, Aletti Gestielle SGR, and Luca De Biasi, Head of Multimanagement?and Funds Selection Unit at BSI SA will present their outlook on global financial markets for the second part of 2013.

The Remarkable Evolution of Asian Market Capitalization: Implications for Chinese Investment Professionals

Tue, 23 Apr 2013 15:28:26

Equity market capitalization in Asia has grown remarkably over the past decade. The extent and composition of the growth is surprising, with many implications for asset allocation and stock selection as well. This webcast is part of the ?Practical ...

Swimming in the Deep End: Applying the GIPS Standards to Pooled Funds

Tue, 23 Apr 2013 15:27:07

Ann F. Putallaz, CIPM, and Arin Stancil, CFA, CIPM, discuss methods for applying GIPS Standards to Pooled Funds.

Hedge Funds in Asia

Tue, 23 Apr 2013 15:24:59

Paul Smith, CFA, provides an overview of hedge funds in Asia, covering the business structuring, regulation, products, distribution, business competition, and various other characteristics of the industry.

Modern Portfolio Theory and Behavioral Finance: The Mathematics of Turbulence (Take 15 Series)

Wed, 24 Apr 2013 09:56:40

Kent Osband offers that the mathematics of turbulence provides a mathematical framework for bridging modern portfolio theory?s rationalism with behavioral finance?s irrationalism. The Take 15 Series is a series of short interviews with leading ...

Investment Philosophies: What Makes the Successful Ones Work

Wed, 24 Apr 2013 10:02:35

Aswath Damodaran discusses the beliefs underlying a range of investment philosophies including indexing, passive and active value investing, growth investing, technical analysis, market timing, arbitrage and evidence on whether the strategies underlying ...

QFII, RQFII and the IPO Pipeline: A New Era for China A-Shares? (Take 15 Series)

Wed, 24 Apr 2013 16:51:08

With unprecedented changes in the foreign institutional investor quota and related rules, as well as the hint of further new policy moves by the government, the China A-Shares market is starting to attract investor interest once again. Mr. Anthony Yau, ...

The Great Confusion: Reflections on Mean-Variance Optimization with Harry Markowitz

Tue, 30 Apr 2013 21:05:00

This is an archived recording of a live webinar with Harry Markowitz presented by the CFA Societies Arizona.

Passive Investing: The Evidence the Fund Management Industry Would Prefer You Not to See

Tue, 30 Apr 2013 11:58:54

This documentary, featuring thought leaders from the investment industry, demonstrates the challenge of outperforming through active investing, and asserts that passive investing presents investors with the best opportunity for investing success.

How to Tame Your Emotions When Investing

Fri, 03 May 2013 09:39:29

Three experts, including Meir Statman, discuss how to tame your emotions when making investment decisions. Registration/subscription may be required to access this content.

How the Global Pension Cliff Will Redefine Risk

Thu, 09 May 2013 17:00:13

Ronald J. Ryan, CFA, discusses various risk factors in pensions and other post-employment benefits. He focuses on topics such as why the wrong objectives may be the greatest risk of all, unfunded liabilities, and the future of risk management.