by Jason Apollo Voss | 20 04 2017 | Active Equity Renaissance, Best of the Blog, Blog
One modern portfolio theory (MPT) pillar that is unquestionably broken is the use of volatility, specifically standard deviation, as a measure of risk. This initial error in MPT’s development is a major contributor to active investment management...
by Jason Apollo Voss | 05 04 2017 | Active Equity Renaissance, Best of the Blog, Blog
In the early 18th century, Daniel Bernoulli proposed that individuals maximize expected utility when they make decisions under uncertainty. This reasoning launched the rationality model of human behavior that underpins many of today’s theories in economics and...
by Jason Apollo Voss | 27 03 2017 | Blog, Where Markets Fail
Have you ever lent a postage stamp to someone who rather than paying you back with an actual postage stamp, gave you the nominal amount of the stamp, say US 40¢, instead? This is aggravating because while the transaction is fungible due to the presumed exchangeability...
by Jason Apollo Voss | 22 03 2017 | Active Equity Renaissance, Best of the Blog, Blog
“I know you are afraid and you should be afraid. I will invest you in products that will not stir up your fears.” This sentiment is applied over and over again in the investment industry in one form or another. It is the mantra of what my co-author Jason Voss,...
by Jason Apollo Voss | 14 03 2017 | Active Equity Renaissance, Best of the Blog, Blog
The average active equity mutual fund underperforms its benchmark. This statement sparks little controversy and can be applied to active equity hedge funds as well. The story gets worse when the results are AUM-weighted. Collectively, active equity delivers no value...
by Jason Apollo Voss | 01 03 2017 | Best of the Blog, Blog
Meditation provides investors with many benefits. Below are meditation tips from the newly released Meditation Guide for Investment Professionals, the full version of which is available online for CFA Institute members. The initial installment of this series...
