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Risk tolerance, smart teams, and results
There is a mirage that mixes headcount, sophistication, and results → “the larger the team, the more sophisticated it is, the better the results.”
It misses the master factor…
The fractal nature of asset-liability matching
What type of asset-liability matching am I talking about Asset-liability matching means different things to different people, even when you think you’re dealing with a specific situation and…
Time-weighted vs. money-weighted return
For money managers (and for our personal investments), rate of return is the most important number that is expressed in percentage terms. But how do we calculate it? Do we use the simple and…
Gadgets
First principles: no arbitrage (is this the strongest principle in finance?)
This implies that we don’t need the entire universe (or a large set) of investors to correct mispriced assets. We only need one investor to identify the arbitrage window, and that investor…
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Risk tolerance, smart teams, and results
There is a mirage that mixes headcount, sophistication, and results → “the larger the team, the more sophisticated it is, the better the results.”
It misses the master factor…
Share
The fractal nature of asset-liability matching
What type of asset-liability matching am I talking about Asset-liability matching means different things to different people, even when you think you’re dealing with a specific situation and…
Share
Apps
Risk tolerance, smart teams, and results
There is a mirage that mixes headcount, sophistication, and results → “the larger the team, the more sophisticated it is, the better the results.”
It misses the master factor…
The fractal nature of asset-liability matching
What type of asset-liability matching am I talking about Asset-liability matching means different things to different people, even when you think you’re dealing with a specific situation and…
Time-weighted vs. money-weighted return
For money managers (and for our personal investments), rate of return is the most important number that is expressed in percentage terms. But how do we calculate it? Do we use the simple and…
Business
First principles: no arbitrage (is this the strongest principle in finance?)
This implies that we don’t need the entire universe (or a large set) of investors to correct mispriced assets. We only need one investor to identify the arbitrage window, and that investor…
Share
Risk tolerance, smart teams, and results
There is a mirage that mixes headcount, sophistication, and results → “the larger the team, the more sophisticated it is, the better the results.”
It misses the master factor…
Share
The fractal nature of asset-liability matching
What type of asset-liability matching am I talking about Asset-liability matching means different things to different people, even when you think you’re dealing with a specific situation and…
Share
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First principles: no arbitrage (is this the strongest principle in finance?)
This implies that we don’t need the entire universe (or a large set) of investors to correct mispriced assets. We only need one investor to identify the arbitrage window, and that investor…
Share
Risk tolerance, smart teams, and results
There is a mirage that mixes headcount, sophistication, and results → “the larger the team, the more sophisticated it is, the better the results.”
It misses the master factor…
Share
The fractal nature of asset-liability matching
What type of asset-liability matching am I talking about Asset-liability matching means different things to different people, even when you think you’re dealing with a specific situation and…
Share
Time-weighted vs. money-weighted return
For money managers (and for our personal investments), rate of return is the most important number that is expressed in percentage terms. But how do we calculate it? Do we use the simple and…
Share
What’s the expected return on buybacks (a theoretical view)
Realized return of buybacks When we think about returns on buyback programs, we normally look back and estimate the realized return of holding the company’s stock. For example, company X has…
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How to think about swaps
Swaps is one of those topics that is perceived to be basic, easy, and intuitive. But not really. We study them briefly in business school and in the CFA curriculum, but that happens in a…
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This website
As of January 2022, this site is set up and maintained with a few tools. hardware and apps I use a MacBook Pro (14-inch, 2021) with the Apple M1 Pro chip and 16 gigs of RAM. It’s connected to…
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How to think about minimum cash balance
Over the years, I’ve asked this question to my banker friends: “what’s our minimum cash balance?” The topic would come up from time to time, but not very often because…
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How is VWAP calculated?
When equity brokers pitch their share repurchase capabilities to corporations, they never fail to mention their ability to outperform VWAP. When asked how they outperform so consistently, the…
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Yield vs. Return, what’s the difference?
Many times we use the terms return and yield interchangeably, and that may be because both concepts describe investment performance. But they are not the same. The difference is this simple:…
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