Economic Value of Equity (EVE): Protection from Rising Interest Rates

CFA Institute

Economic value of equity (EVE) can help determine how well a company can weather interest rate hikes. Corporate Finance Economics Future States Performance Measurement & Evaluation Risk Management economic value of equity (EVE) interest rates risk management

The Private Capital Wealth Equation, Part 2: The Economics Variable

CFA Institute

The performance of alternative asset managers is encapsulated in the formula: Wealth = Controls + Economics. Here, we outline the economics component of the equation.

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Manager Selection: The Power of Payoff

CFA Institute

Drivers of Value Economics Performance Measurement & Evaluation fund managers Manager SelectionThe most important portfolio manager skill metric is often overlooked.

New Breed of Private Capital Firms Will Face Performance Headwinds

CFA Institute

Alternative Investments Economics Performance Measurement & Evaluation Investment Products and Asset Classes Private EquityA challenge awaits PE firms that amass funds to expand beyond their core competency.

Extremely Successful? Extremely Lucky!

CFA Institute

Drivers of Value Economics Performance Measurement & Evaluation luck vs skillWhat's more critical to investing success: luck or skill?

Bonds and Fixed Income: Where’s the Hedge?

CFA Institute

Drivers of Value Economics Equity Investments Fixed Income Performance Measurement & Evaluation Portfolio Management equities fixed income Investment Products and Asset Classes Portfolio Management Techniques stocks

Valuing Digital Assets with TradFi Tools: Three Methods

CFA Institute

Alternative Investments Drivers of Value Economics Performance Measurement & Evaluation Portfolio Management Risk Management Bitcoin cryptocurrencies decentralized finance (defi) Ethereum Investment Products and Asset Classes

Outperformance Ain’t Alpha

CFA Institute

Drivers of Value Economics Equity Investments Performance Measurement & Evaluation Philosophy Portfolio Management alpha Factor Investing Investment Management Strategies Manager Selection Portfolio Management TechniquesOutperformance and alpha are not exactly the same thing.

Growth, Value, and Skewness: Are Growth Stocks a Lottery-Like Bet?

CFA Institute

Economics Equity Investments Performance Measurement & Evaluation Portfolio Management equities Factor Investing growth investing Investment Management Strategies Investment Products and Asset Classes skewness stocks Value Investing

Tricks of the Private Equity Trade, Part 2: Leverage

CFA Institute

Alternative Investments Economics Financial Statement Analysis Performance Measurement & Evaluation Standards, Ethics & Regulations (SER) Investment Products and Asset Classes Private Equity Regulations Standards and Ethics Tricks of the Private Equity Trade

The Equity Advantage: Reinvestment of Earnings

CFA Institute

Drivers of Value Economics Equity Investments Performance Measurement & Evaluation dividends equities Investment Products and Asset Classes share buybacksEquities can compound in value in a way that investments in bonds, real estate, and other asset classes cannot.

Tricks of the Private Equity Trade, Part 1: Value Drivers

CFA Institute

Alternative Investments Drivers of Value Economics Performance Measurement & Evaluation Standards, Ethics & Regulations (SER) Investment Management Strategies Investment Products and Asset Classes Private Equity Tricks of the Private Equity Trade

How Goals-Based Portfolio Theory Came to Be

CFA Institute

Behavioral Finance Economics History & Geopolitics Performance Measurement & Evaluation Philosophy Portfolio Management Risk Management behavioral finance goals-based investing Investment Management Strategies Modern Portfolio Theory (MPT

Not All NAVs Are Created Equal

CFA Institute

Alternative Investments Economics Performance Measurement & Evaluation Portfolio Management Private Equity private marketsHow can investors price NAV valuations and efficiently transfer their eventual risk?

Crypto Tokens: Does Security Selection Matter? 

CFA Institute

Can token pickers demonstrate differentiated performance? What role does security selection play in cryptocurrency investing?

Crypto Tokens and Crypto Coins: What Drives Performance?

CFA Institute

The correlation between volume and price of crypto coins and tokens is negligible no matter how it's measured. Drivers of Value Economics Performance Measurement & Evaluation Bitcoin blockchain cryptoassets cryptocurrencies Ethereum fintech Investment Products and Asset Classes

Sector and Factor Performance in Wartime

CFA Institute

How do stocks -- specifically sectors and factors -- perform during times of war?

Tell Me a Story: Aswath Damodaran on Valuing Young Companies

CFA Institute

Economics Equity Investments Performance Measurement & Evaluation Risk Management Alpha Summit Aswath Damodaran equities Investment Products and Asset Classes stocks valuations"You don't have to be right to make money [valuing companies]," Aswath Damodaran says.

Retirement Income: Six Strategies

CFA Institute

Economics Equity Investments Leadership, Management & Communication Skills Performance Measurement & Evaluation Portfolio Management Risk Management Firm Management and Client Relationships Investment Management Strategies Retirement retirement planning Retirement Security

Building a CAPM That Works: What It Means for Today’s Markets

CFA Institute

The capital asset pricing model (CAPM) is a marvel of economic scholarship. The problem is that it doesn’t always work in practice. So, we fixed it.

What If the US Government Were Valued Like a Company?

CFA Institute

Economics Future States History & Geopolitics Performance Measurement & Evaluation DCF analysis debt economics United States valuationIf the US government were a normal company, it would have had to declare bankruptcy long ago.

Digital Gold or Fool’s Gold: Is Crypto Really a Hedge against Equity Risk?

CFA Institute

Alternative Investments Economics Equity Investments Performance Measurement & Evaluation Risk Management Bitcoin correlation cryptoassets cryptocurrencies equities Gold Investment Products and Asset Classes risk management S&P 500 stocks

How Sharp Is the Sharpe Ratio? An Analysis of Global Stock Indices

CFA Institute

Economics Equity Investments Performance Measurement & Evaluation Risk Management indices risk management Sharpe ratio stock market performance volatility

“Round-Tripping” Stocks and the Absurdity of Hedge Fund Fees

CFA Institute

Alternative Investments Economics Performance Measurement & Evaluation Standards, Ethics & Regulations (SER) Hedge Funds investment fees Investment Products and Asset Classes Regulations Standards and EthicsJust how out of whack are hedge fund fees?

Book Review: The Price of Time

CFA Institute

Book Reviews Drivers of Value Economics Future States History & Geopolitics Performance Measurement & Evaluation Philosophy central banking economics financialization history Inflation interest rates Monetary Policy

Tactical Asset Allocation: The Flexibility Advantage

CFA Institute

Drivers of Value Economics Performance Measurement & Evaluation Portfolio Management asset allocation Investment Decision Making Investment Management Strategies Portfolio Management Techniques

Equity Risk Premium Forum: Term Structure, Mean Reversion, and CAPE Reconsidered

CFA Institute

Economics Equity Investments Performance Measurement & Evaluation Philosophy Risk Management equities equity risk premium Equity Risk Premium Forum Investment Management Strategies Investment Philosophy Roger Ibbotson

Investing’s First Principles: The Discounted Cash Flow Model

CFA Institute

Drivers of Value Economics Equity Investments Investment Topics Performance Measurement & Evaluation Portfolio Management DCF analysis equities Investment Management Strategies stocksThe DCF model is not only relevant to today’s market, it remains an absolute necessity.

Book Review: The Case for Long-Term Value Investing

CFA Institute

Book Reviews Drivers of Value Economics Equity Investments Performance Measurement & Evaluation Philosophy Portfolio Management equities Investment Management Strategies Portfolio Management Techniques Value Investing

Technical Analysis Revisited: Moving Averages = Above Average Returns?

CFA Institute

How have moving averages performed as an investment strategy over the decades?

Equity Risk Premium Forum: Don’t Bet Against a Bubble

CFA Institute

Behavioral Finance Drivers of Value Economics Equity Investments Performance Measurement & Evaluation Philosophy Portfolio Management Risk Management Cliff Asness equity risk premium Equity Risk Premium Forum Investment Management Strategies Investment Philosophy Roger Ibbotson

Causality Techniques in Investment Management: Five Key Findings

CFA Institute

Behavioral Finance Drivers of Value Economics Investment Topics Performance Measurement & Evaluation behavioral finance causality Investment Decision MakingWhat are the most widely used causality tests in the equity markets?

Options Markets: How Far Have Implied Transaction Costs Fallen?

CFA Institute

Derivatives Drivers of Value Economics Performance Measurement & Evaluation derivatives investment fees Investment Management Strategies optionsOptions trading's explicit costs have plummeted to near zero, but what about implied transaction costs?

The Elephant in the Room: The ESG Contradiction

CFA Institute

Drivers of Value Economics Equity Investments Future States Performance Measurement & Evaluation Portfolio Management dividends ESG issues Investment Management Strategies Investment Products and Asset Classes net zero

Fama and French: The Five-Factor Model Revisited

CFA Institute

Drivers of Value Economics Equity Investments Investment Topics Performance Measurement & Evaluation equities Eugene Fama Factor Investing Investment Management Strategies Investment Products and Asset Classes Kenneth French stocks