Postmodern Finance

In my last post I described how the link between risk and return has not been as strong as Modern Portfolio Theory (MPT) would predict, and investors willing to use leverage can take advantage of this fact by buying a portfolio of low-risk securities on margin. Indeed, this result was [...]

This is part three in my series on our current state of knowledge in wealth management, how we got here, and what we can do better. To start at part one click here. In my last post I explained how Modern Portfolio Theory (MPT) spurred the invention of the index [...]

This is part two in my series on our current state of knowledge in wealth management, how we got here, and what we can do better. For part one click here. Suppose you are shopping for a new car, or a fancy new electronic gadget of some kind. There are [...]

This is going to be the first in a multi-part series on what I see as the current state of the investment management business, how we got here, and how our firm views and does things differently compared to most of our peers. I’m going to make the case that [...]