The Mythology of Rebalancing: A Random Walk down Performance and Risk Management

This research shows that Naïve rebalancing may not be able to improve your strategy’s performance or risk profile, and proposes some alternative ideas for “intelligent” rebalance. In this paper, we will just focus on the robo-advisors and argue that one … Continue reading The Mythology of Rebalancing: A Random Walk down Performance and Risk Management

Research: When CEOs Don’t Win Awards, They Make More Acquisitions

Each year major business media outlets rank CEOs based on their performance. The few who win awards and earn the highest ranking become superstar CEOs — they gain visibility and higher social recognition, and they may even earn higher compensation. Award-winning CEOs also tend to capitalize on their fame by assuming more board seats and writing books. But for every happy award-winning CEO, there are many more CEOs who did not win. We wanted to know how these rankings affect CEOs who don’t get the top spot. If awards can influence the behaviors of CEOs who win, could they also influence the … Continue reading Research: When CEOs Don’t Win Awards, They Make More Acquisitions

Why Markets Are Inefficient: A Gambling ‘Theory’ of Financial Markets for Practitioners and Theorists

  The purpose of this article is to propose a new “theory,” the Strategic Analysis of Financial Markets (SAFM) theory, that explains the operation of financial markets using the analytical perspective of an enlightened gambler. The gambler understands that all … Continue reading Why Markets Are Inefficient: A Gambling ‘Theory’ of Financial Markets for Practitioners and Theorists