Smart(er) Investing (eBook)

How Academic Insights Propel the Savvy Investor

Elisabetta Basilico, Tommi Johnsen (Autoren)

eBook Download: PDF

2019 | 1st ed. 2019
XV, 154 Seiten
Springer International Publishing (Verlag)
978-3-030-26692-9 (ISBN)

Infos

This book identifies and discusses the most successful investing practices with an emphasis on the academic articles that produced them and why this research led to popular adoption and growth in $AUM.

Investors are bombarded with ideas and prescriptions for successful investing every day. Given the steady stream of information on stock tips, sector timing, asset allocation, etc., how do investors decide?  How do they judge the quality and reliability of the investment advice they are given on a day-to-day basis?

This book identifies which academic articles turned investment ideas were the most innovative and influential in the practice of investment management. Each article is discussed in terms of the asset management process: strategy, portfolio construction, portfolio implementation, and risk management. Some examples of topics covered are factor investing, the extreme growth of trading instruments like Exchange Traded Funds, multi-asset investing, socially responsible investing, big data, and artificial intelligence.

This book analyzes a curated selection of peer-reviewed academic articles identified among those published by the scientific investment community.  The book briefly describes each of the articles,  how and why each one changed the way we think about investing in that specific asset class, and provides insights as to the nuts and bolts of how to take full advantage of this successful investment idea. It is as timely as it is informative and will help each investor to focus on the most successful strategies, ideas, and implementation that provide the basis for the efficient accumulation and management of wealth. 

Elisabetta Basilico is the co-editor of academicinsightsoninvesting.com and has 15 years of experience in international financial settings spanning from academia to institutions (pension funds, foundations, and family offices). Her core skills include turning academic insights into quantitative investment models and ideas with specific expertise in global wealth management, asset allocation, liquid investments, stock picking signals, fund picking, and general statistical analysis. She is a holder of the Certified Financial Analyst (CFA) designation since 2007 and obtained a PhD from the University of St.Gallen, Switzerland. She has taught and conducted quantitative research at various universities and is a co-author of various articles published in peer-reviewed journals.

Tommi Johnsen is currently the co-editor of academicinsightsoninvesting.com, is the former Director of the Reiman School of Finance, and an emeritus professor at the Daniels College of Business at the University of Denver. She has worked extensively as a research consultant and investment advisor for institutional investors in the areas of quantitative methods and portfolio construction. She taught at the graduate and undergraduate levels and published research in several areas including: capital markets, portfolio management and performance analysis, financial applications of econometrics, and the analysis of equity securities. These publications have appeared in numerous peer-reviewed journals. She received her PhD from the University of Colorado at Boulder, with a major field of study in Investments and a minor in Econometrics. 

Inhalt

Foreword 5
Preface: Why We Wrote This Book 7
Contents 9
List of Figures 13
List of Tables 15
Part I: How to Read and Evaluate Academic Research 16
1: What Constitutes Good Investment Research? 17
Bibliography 25
2: A Roadmap to Reading an Academic Article 26
The Abstract 26
Introduction and Literature Review 27
Methodology: Research Design, Data and Analysis 27
Results 28
Conclusions 28
Part II: The Best Investing Ideas 30
3: Index Investing: It Makes Active Management Better 31
The Origin 31
Role of the Strategy in a Portfolio 33
Evolution of the Idea 35
What Are the Academic Insights? 36
The Key Takeaways 39
Practical Applications 40
The Continuing Academic Story 44
Bibliography 45
4: Factor Investing: Challenging the Market Index with Smart Beta Products 48
The Democratization of Factor Investing 48
Role of the Strategy in a Portfolio 49
Evolution of the Idea 51
What Are the Academic Insights? 55
The Key Takeaways 57
Practical Applications 58
The Continuing Academic Story 62
Bibliography 64
5: Multi-Asset Investing: Challenging the Industry Obsession with Alpha 66
The Past, the Present and the Future 66
Role of the Strategy in a Portfolio 68
Evolution of the Idea 69
What Are the Academic Insights? 70
Practical Applications 75
The Continuing Academic Story 77
Bibliography 78
6: Tail Risk Hedging: It Is an Asset Allocation Decision 81
Turbulence Is Around the Corner 81
Role of the Strategy in a Portfolio 82
Evolution of the Idea 83
What Are the Academic Insights? 84
Practical Applications 86
Implementation Suggestions 87
The Continuing Academic Story 87
Bibliography 88
7: Responsible Investing: Deep Roots in the Values of Western Society 90
It’s a Global Story with Europe, Women and Millenials in the Vanguard 90
Role of the Strategy in a Portfolio 93
Evolution of the Idea 96
What Are the Academic Insights? 99
The Key Takeaways and Practical Applications 102
The Continuing Academic Story 103
Bibliography 105
8: Equity and Rewards-Based Crowdfunding: A Potential Disrupter 106
A Potential Game Changer, Disrupting Venture and Private Equity Markets 106
The Origin 106
Reg CF of the JOBS Act Is Transformative for Financial Markets 108
Venture Capitalists and Equity-Based Crowdfunding 109
Role of the Strategy in a Portfolio 110
Evolution of the Idea 112
What Are the Academic Insights? 114
The Key Takeaways 115
Practical Applications 117
The Realignment of Incentives for Platforms 118
The Need for Transparency 118
Fraud 118
The Continuing Academic Story 119
Bibliography 119
9: Big Data and Artificial Intelligence: A Revolution in Investment Management 121
Data Science Is Revolutionizing Investment Management 121
Role of the Strategy in a Portfolio 124
Evolution of the Idea 126
What Are the Academic Insights? 127
Practical Applications 128
The Continuing Academic Story 131
Bibliography 133
10: Cryptocurrencies: A Fledgling Asset Class, But It Is Too Early to Tell 135
What Is the Value of a Cryptocurrency? 135
What Constitutes a Bubble? 136
Cryptocurrency: A New Investment Opportunity? 137
The Continuing Academic Story 139
Bibliography 139
11: Women in Finance: What Does the Research Show? 141
The Status Quo: An Endangered Species 141
The Trillion Dollar Question: Where Are the Women? 142
What Are the Academic Insights? 145
Concluding Remarks 152
The Trillion Dollar Question Answered: What Should the Finance Industry Do? 153
Bibliography 155
Glossary 157
Index 161

Produkt-Details

• Erscheint lt. Verlag: 11.12.2019
• Zusatzinfo: XV, 154 p. 13 illus.
• Sprache: englisch
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Schlagworte: Artificial Intelligence • Behavioral Finance • Big Data • Blockchain • crowdfunding • Cryptocurrency • ESG • Exchange Traded Funds • Factor Investing • Index Investing • Investments and Securities • multi-asset investing • Quantitative Finance • Socially Responsible Investing • tail-risk hedging
• ISBN-10: 3-030-26692-3 / 3030266923
• ISBN-13: 978-3-030-26692-9 / 9783030266929