Warren Buffett: Why hedge funds fail - MarketWatch:
"The fixed annual fees hedge funds charge are the real money-makers, not the contractual "bonuses" for performance. By extension, Buffett is making a statement about active managers of all kinds. They're not in the business of beating the market. They're in the business of attracting assets and that's all.
For example, a hedge fund managing
A Tax to Curb Excessive Trading Could Be a Boon to Returns - The New York Times
A Tax to Curb Excessive Trading Could Be a Boon to Returns - The New York Times:
Interesting piece--not sure a tax would solve the problems, but ???
"Why do people hurt themselves by trading in this manner? Is it like gambling, with its danger of addiction akin to cigarettes? Maybe a little. A different study Mr. Odean worked on showed that when Taiwan introduced a national lottery, trading on
Interesting piece--not sure a tax would solve the problems, but ???
"Why do people hurt themselves by trading in this manner? Is it like gambling, with its danger of addiction akin to cigarettes? Maybe a little. A different study Mr. Odean worked on showed that when Taiwan introduced a national lottery, trading on
Europe's airlines spruce up their jet fuel hedges | Reuters
Europe's airlines spruce up their jet fuel hedges | Reuters:
"With fuel accounting for 46 percent of Ryanair's (RYA.I) 2014 operating costs, 33 percent of British Airways' (ICAG.L) and 21.5 percent of Lufthansa's (LHAG.DE), price fluctuations can seriously impact company profits. To reduce price-fluctuation risk on projected operating costs, many airlines hedge a proportion of their future fuel
"With fuel accounting for 46 percent of Ryanair's (RYA.I) 2014 operating costs, 33 percent of British Airways' (ICAG.L) and 21.5 percent of Lufthansa's (LHAG.DE), price fluctuations can seriously impact company profits. To reduce price-fluctuation risk on projected operating costs, many airlines hedge a proportion of their future fuel
Unfriendly Tax-Friendly Funds - WSJ
Unfriendly Tax-Friendly Funds - WSJ:
"The major finding: In every year [that was studied], tax-managed funds on average failed to save their investors more money on taxes than their incremental expenses, or the difference between their operating costs and the lower fees of the other types of passively managed funds.
In other words, any tax savings were eaten up by fees.
"
'via Blog this'
"The major finding: In every year [that was studied], tax-managed funds on average failed to save their investors more money on taxes than their incremental expenses, or the difference between their operating costs and the lower fees of the other types of passively managed funds.
In other words, any tax savings were eaten up by fees.
"
'via Blog this'
Scientists Replicated 100 Psychology Studies, and Fewer Than Half Got the Same Results | Science | Smithsonian
This is troubling in many ways. I would expect the numbers to be better in finance (especially the mathematical studies and modeling studies), but I have no doubt that the timing of studies matters and that the replication is often impossible (possibly in part since the original study influences the subjects/markets).
Scientists Replicated 100 Psychology Studies, and Fewer Than Half Got the
Bankrupt Family Firms by Massimo Massa, Alminas Zaldokas :: SSRN
For good or bad, family forms are often different. In this article Massa and Zaldokas investigate these differences during a bankruptcy.
Bankrupt Family Firms by Massimo Massa, Alminas Zaldokas :: SSRN:
"Abstract: We study the role of family ownership during the bankruptcy process. We argue that at times of distress family blockholders are better positioned to manage the firm and
More than Money: Venture Capitalists on Boards by Natee Amornsiripanitch, Paul A. Gompers, Yuhai Xuan :: SSRN
More than Money: Venture Capitalists on Boards by Natee Amornsiripanitch, Paul A. Gompers, Yuhai Xuan :: SSRN:
In the department of "this fits what I teach perfectly"/ (Confirmation bias?), a new paper shows again that venture capitalists bring more tot the table than just capital. Their expertise and relationships also matter.
"... a prior relationship with the founder, lead investor status,
In the department of "this fits what I teach perfectly"/ (Confirmation bias?), a new paper shows again that venture capitalists bring more tot the table than just capital. Their expertise and relationships also matter.
"... a prior relationship with the founder, lead investor status,
Rankings of Published Price-Earnings Ratios and Investor Attention by Jordan Moore :: SSRN
Rankings of Published Price-Earnings Ratios and Investor Attention by Jordan Moore :: SSRN:
Jordan Moore shows that PE Rankings (independent of the PE ratio itself) are associated with returns. This is a cool finding. It is at least consistent a view that investors' screening practices impact their investment results.
A "look-in":
"Results of empirical tests provide preliminary support for
Politically Connections, Institutional Monitoring and Earnings Quality: Some Evidence from Malaysia by Tee Chwee Ming :: SSRN
Politically Connections, Institutional Monitoring and Earnings Quality: Some Evidence from Malaysia by Tee Chwee Ming :: SSRN:
Ming and Gal have an interesting study on the behavior and monitoring of politically connected firms in Malaysia. There three main findings are that politically connected firms
have lower earnings quality
"are not subject to market discipline despite reporting poor
Ming and Gal have an interesting study on the behavior and monitoring of politically connected firms in Malaysia. There three main findings are that politically connected firms
have lower earnings quality
"are not subject to market discipline despite reporting poor
Corporate governance: the great debate – Director Magazine
Corporate governance: the great debate – Director Magazine:
"“Corporate governance is fast-changing and organic, and this is about stimulating a debate,” explains Oliver Parry, the IoD’s senior corporate governance adviser. “This report began with us working towards a good governance index of listed companies and evolved into a focus point for debate on the issue.” Companies of all sizes, says
"“Corporate governance is fast-changing and organic, and this is about stimulating a debate,” explains Oliver Parry, the IoD’s senior corporate governance adviser. “This report began with us working towards a good governance index of listed companies and evolved into a focus point for debate on the issue.” Companies of all sizes, says
When CEOs Are Accidentally Overpaid - Bloomberg View
When CEOs Are Accidentally Overpaid - Bloomberg View:
great article focusing on this article by Kelly Shue
"The difference in pay between different sections was larger than the difference within different sections. Remember that these sections were randomly created. So Shue's finding means that human networks were a very important determinant of pay levels. She also found that when one
great article focusing on this article by Kelly Shue
"The difference in pay between different sections was larger than the difference within different sections. Remember that these sections were randomly created. So Shue's finding means that human networks were a very important determinant of pay levels. She also found that when one
Top-CEO Pay Isn’t Driven By Talent, New Study Says - Real Time Economics - WSJ
Top-CEO Pay Isn’t Driven By Talent, New Study Says - Real Time Economics - WSJ: "“Compensation of CEOs has far outpaced that of very highly paid workers, the top 0.1% of earners,” write Mr. Mishel and Ms. Davis. “There are substantial rents embedded in executive pay, meaning that CEO pay gains are not simply the result of a competitive market for talent,” they say, citing earlier research
Women On Wall Street: Just A Tiny Portion Of Mutual Fund Managers Are Women
Women On Wall Street: Just A Tiny Portion Of Mutual Fund Managers Are Women:
From International Business Times:
"It’s no secret that the world of finance skews heavily male. But when it comes to mutual funds, the disparity is particularly stark: Women make up just 9 percent of mutual fund managers.
The data, compiled in a recent paper by Morningstar Research Director Laura Pavlenko Lutton, are
From International Business Times:
"It’s no secret that the world of finance skews heavily male. But when it comes to mutual funds, the disparity is particularly stark: Women make up just 9 percent of mutual fund managers.
The data, compiled in a recent paper by Morningstar Research Director Laura Pavlenko Lutton, are
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