Asset Management – A Systematic Approach to Factor Investing
Bonds and stocks? Property? Funds for hedges? Private stock? If those seem like the things you should concentrate on when creating an investment portfolio, Andrew Ang has a wealth of research that will show you that’s not the case. Ang challenges the accepted knowledge regarding asset allocation in his new book Asset Management: A Systematic Approach to Factor Investing by demonstrating that the bundles of overlapping risks that asset class names imply are more important. According to Ang, investing is similar to maintaining a healthy diet in that you must examine the nutrients in the foods you eat. Investors and eaters alike may suffer from severe malnutrition if this is not done.
According to Ang, hard times are crucial, and each investor’s bad times are a little bit different. The book’s central tenet is that difficult times are crucial, providing a fresh perspective on the perennial issue of where to invest your money. After years of experience as a consultant and a professor of finance, Ang has come to the conclusion that the traditional strategy, which focuses on asset classes, is too rudimentary and ultimately too expensive to provide clients with acceptable service.
Instead, he concentrates on “factor risks,” which are the odd combinations of difficult times that affect all asset classes and that we need to pay close attention to if we want to survive market turbulence and reap the benefits that accompany it. Finding your unique set of difficult times and taking advantage of the differences between them and those of the typical investor is necessary to optimally harvest factor premiums, whether you do it yourself or by employing someone else. For trustees, professional money managers, astute private investors, and business students who wish to comprehend the economics of factor risk premiums, harvest them effectively in their portfolios, and start the hunt for true alpha, Asset Management—which is clearly written but packed with the most recent research and data—will be essential reading.
Size : 9.5 MB | English | 2014 | PDF | 9780199959327