Rational Investing – The Subtleties Of Asset Management
Many investors think that either clairvoyance or luck are necessary for successful investing. Hugues Langlois, a professor of finance, and Jacques Lussier, an asset manager, discuss the current status of asset management and the conflict between ability and luck in their book Rational Investing. Three performance drivers constitute the foundation of rational investing: using relative mispricings in financial markets, effectively diversifying against unfavorable events, and balancing exposure to risk factors. Langlois and Lussier demonstrate how to apply performance drivers such as institutional investors with access to substantial resources and nonprofessional investors limited to small-scale transactions using explicit examples from model multi-asset-class portfolios.
Few investing products—whether basic or quantitative, systematic or discretionary, traditional or alternative—cannot have their performance examined using this paradigm. From novice investors with rudimentary statistical knowledge to seasoned investment professionals looking to expand their knowledge of the asset management sector, Langlois and Lussier shed light on the mechanics of sustainable investing and the structure of financial markets, enabling any investor to become a logical participant.
Size : 2 MB | English | 2017 | PDF | 9780231177344