Benchmarking Leverage Math 
Barry Ritholtz
APRIL 17, 2025
The reporters did not suggest wrongdoing, but allow me to point out that any advisor, let alone two, who became billionaires while wildly underperforming their benchmarks are obviously not fiduciaries. These two possibilities a 10-fold increase versus a 90% drop are roughly symmetrical in terms of math (but probably not probabilities).
Barry Ritholtz
SEPTEMBER 19, 2023
One, one is true and I’ve always said is that I wanted people to stop, ask if I could doing math. And no one asked me if I can do math anymore with a degree from Booth, particularly in econometrics and statistics. So people really ask you, you take French and can you do math. Two reasons. For various reasons.
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Barry Ritholtz
SEPTEMBER 3, 2024
And so I kind of leveraged that when I went to Morningstar because they’re very focused on quality, the whole concept of economic moats, but also about buying companies when they’re trading at a discount to intrinsic value. So what do you use as a benchmark for the large cap fund? Is that, am I getting that right?
Barry Ritholtz
SEPTEMBER 12, 2022
I — I loved math, but really, I was going to go down that literature route more than anything else and — and study Spanish literature. BITTERLY MICHELL: Not in leveraged, no, not at all, give more …. I wasn’t that typical person that did a number of, you know, internships during the summer, had that …. I love statistics.
Barry Ritholtz
FEBRUARY 17, 2025
But when you look at emerging markets and when you look at value, the opportunity for alpha is much, much greater than it is in traditional large cap growth stocks in the US And a lot of managers in that space actually beat their benchmark. And I did a lot of options math, which I thought was interesting.
CFO News Room
DECEMBER 17, 2022
How firms can best leverage their internal data to improve the number of client referrals they receive. But while benchmarking surveys can be helpful to see what tactics the ‘average’ firm is using, some firms might not be optimizing the use of their own internal firm data to discover ways to generate more referrals.
Barry Ritholtz
NOVEMBER 15, 2022
It seems like an easy one, but there’s a lot of missed benchmarking that goes on. We’re going to make a benchmark much easier. So as much as I’m personally still a pretty strong skeptic of active management, I mean, I understand the math, and the odds are not in your favor. It’s how math works.
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