Beware the Alpha Sharks! High-Frequency Trading and Its Impact on Markets

Posted by Jason Apollo Voss on Jul 28, 2013 in Best of the Blog, Blog | 0 comments Maureen O’Hara, professor of finance at Cornell University, and member of the Systemic Risk Council has a warning to traditional investment managers, i.e., low frequency traders (LFT): High-frequency trading (HFT) is now the norm, and it is not going away. Continuing to pretend that HFT has no effect on your investments and on your alpha is at best naïve and at worst ignorant. Need proof? New...
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High-Stakes Decision Making: How Neuroscience Rescues Behavioral Finance

Posted by Jason Apollo Voss on Jul 23, 2013 in Blog | 0 comments This year, the 2018 Financial Analysts Seminar will be held in Chicago on 23–26 July. Learn more about the agenda and speaker details on our website. Behavioral finance frequently makes investment managers giggle more than it makes them grateful. After all, it is comforting and simultaneously humorous to know that your investment mistakes have a reason behind them. Yet behavioral finance offers...
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A Bond Convexity Primer

Posted by Jason Apollo Voss on Jun 25, 2013 in Best of the Blog, Blog | 0 comments As the US Federal Reserve lays the verbal groundwork for an eventual real-world quantitative easing (QE) taper, bond prices are dropping at an accelerated rate. In order to understand the ramifications of a Federal Reserve taper on the prices of a bond or bond portfolio, what is needed is a bond convexity primer. In the parlance of those who know calculus, convexity is the second derivative. For...
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Behavioral Portfolio Management: Emotions and Volatility Are Key to Successful Implementation

Posted by Jason Apollo Voss on Jun 12, 2013 in Best of the Blog, Blog | 0 comments Our intial discussion with C. Thomas Howard about his “Behavioral Portfolio Management” has done so well we thought you would like to read more of the discussion about how to deploy behavioral finance practically. Particularly germane to implementing behavioral portfolio management is understanding Howard’s views on emotions and volatility, and how he handles them when managing...
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