Learning Center

In 2014, the HFRX Global Hedge Fund Index lost 0.6 percent, underperforming the S&P 500 Index by 14.3 percentage points. And while the index outperformed foreign equities, which generally lost between about 2 and 5 percent, it underperformed virtually riskless one-year Treasury notes, which returned 0.2 percent. It also underperformed a typical, globally diversified and...

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An overwhelming amount of evidence exists to clearly demonstrate that, in aggregate, active management is a loser’s game. And this is true regardless of whether markets are efficient or inefficient, or whether they are in a bull or bear phase. But if the evidence doesn’t convince you, perhaps some of the market’s smartest and most-well-respected...

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The investment successes of the Yale Endowment led many other endowments, foundations and even high-net-worth individuals to consider adopting the so-called “Yale Model.” The model included a focus on alternative investments and attempts to capture the liquidity premium available in illiquid investments, such as private equity and hedge funds. In his new book, Asset Management:...

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Although not for novice investors, Andrew Ang’s new book, “Asset Management: A Systematic Approach to Factor Investing,” represents a comprehensive, clearly written and accessible review of the latest thinking in modern financial theory. It provides some important lessons that investors can learn and implement in constructing well-diversified portfolios. I thought it worth sharing some of...

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