Small Caps, Large Caps, and Interest Rates
It’s often claimed that small-cap stocks are more interest-rate sensitive than their large-cap counterparts because of their reliance on outside financing. This seems plausible. But ...
Drivers of Value
Private Equity: In Essence, Plunder?
Statistically, there is an increased risk of failure with private equity ownership. PE portfolio companies are about 10 times as likely to go bankrupt as non-PE-owned companies. ...
Scenario Planning, Foresight, and the Power of Imagination: Navigating an Uncertain Future
In an era characterized by significant disruptions, the future has become increasingly uncertain. Scenario planning is a crucial methodology tailored for such times. Unlike ...
From Sandpiles to Angel Investments
This article explores the dynamics of angel investing through the lens of celebrated mathematical theories of self-organized criticality (SOC) and fractal behavior. Return ...
Book Review: Risks and Returns
Risks and Returns: Creating Success in Business and Life. 2024. Wilbur Ross. Skyhorse Publishing. President of Faulkner, Dawkins & Sullivan Securities Corporation at age 29. ...
Mitigating Economic Risk in Multi-Factor Strategies
Investors often choose diversified, multi-factor strategies to overcome the limitations of traditional cap-weighted benchmarks. These benchmarks are overly concentrated on companies ...
Resilience Is the New Alpha: Rethinking Risk in a Fragile World
ESG investing was built for a world that mostly behaved. The idea was simple: channel capital to climate-conscious companies, inclusive workplaces, and ethical supply chains, and the ...
Market Efficiency vs. Behavioral Finance: Which Strategy Delivers Better Returns?
I’m the most important person in behavioral finance, because most of the behavioral finance is just the criticism of efficient markets. So, without me what do they got? Eugene Fama ...
Navigating the Risks of AI in Finance: Data Governance and Management Are Critical
Regulators are cognizant of the disruptive impact and security threats posed by weak data governance (DG) and data management (DM) practices in the investment industry. Many ...
Dangers and Opportunities Posed by the AI Skills Gap in Investment Management
Aritificial intelligence (AI) will not replace investment managers, but investment managers that successfully integrate AI will replace those that do not. AI is surrounded by hype, ...
How Machine Learning Is Transforming Portfolio Optimization
The investment industry is undergoing a transformation that is largely attributable to technological advancements. Investment professionals are integrating new technologies, such as ...
Distress Investing: Crime Scene Investigation
In the underbelly of private markets lies the main culprit behind corporate failures: defective capital structuring. Frequently the result of human failings, the widespread ...
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