by admin | Jan 7, 2013 | Investment Performance Guy, News
This weekend’s WSJ reports that “U.S. stocks ended the first week of 2013 up 3.8%.” Some might want to annualize this figure, to get a sense of what the year will look like. To do so, we can simply raise 1.038 to the 52nd power, and subtract one.And...
by admin | Jan 3, 2013 | Investment Performance Guy, News
Over the past few years there have been at least two lawsuits filed, where an asset manager had committed fraud, either with a Ponzi scheme or some other means, and where the firm had claimed compliance with GIPS(R) (Global Investment Performance Standards). When...
by admin | Jan 2, 2013 | Investment Performance Guy, News
You’re probably familiar with the expression “just because you can do something, doesn’t mean you should.” There have been several times where this saying has come in handy, and this post deals with one more case: standard deviation.In...
by admin | Dec 27, 2012 | Investment Performance Guy, News
We often get questions about a problem all asset managers face: a client requests you to sell some of his/her/their securities, to free up cash that they plan to withdraw. Between the time that the cash is created and it’s finally taken by the client, it’s...
by admin | Dec 26, 2012 | Investment Performance Guy, News
A recent WSJ headline referenced one major bank’s problems as regulators challenge its risk management practices. This made me think of comments I usually make during our firm’s Fundamentals of Performance Measurement course, when I touch on risk...