Leveraging on Home Bias PDF Download
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Author: Sophie Nachemson-Ekwall
Publisher:
ISBN:
Category :
Languages : en
Pages : 38
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Book Description
This paper focuses on the domestic institutional investors' ability to refocus their investments strategy in the direction of more of long-term committed capital. Suggesting a reconceptualization of domestic institutions in the sense that they can leverage on information asymmetries connected to home bias, we take an institutional approach to domestic investor rationale. We conduct qualitative and descriptive research to illuminate how Swedish institutions relate to expectations to engage in investee companies. The detected more focused investment strategies can primarily be explained through a (i) refocusing of risk-allocation mandates related to longer investments horizons, (ii) leveraging on home bias, and (iii) an owner-friendly governance model. By highlighting the embedded character of domestic institutions' engagement, our research complements conventional ideas on institutional investors' rational disinterest in engagement. With new norms, behavior changes.
Author: Sophie Nachemson-Ekwall
Publisher:
ISBN:
Category :
Languages : en
Pages : 38
Get Book Here
Book Description
This paper focuses on the domestic institutional investors' ability to refocus their investments strategy in the direction of more of long-term committed capital. Suggesting a reconceptualization of domestic institutions in the sense that they can leverage on information asymmetries connected to home bias, we take an institutional approach to domestic investor rationale. We conduct qualitative and descriptive research to illuminate how Swedish institutions relate to expectations to engage in investee companies. The detected more focused investment strategies can primarily be explained through a (i) refocusing of risk-allocation mandates related to longer investments horizons, (ii) leveraging on home bias, and (iii) an owner-friendly governance model. By highlighting the embedded character of domestic institutions' engagement, our research complements conventional ideas on institutional investors' rational disinterest in engagement. With new norms, behavior changes.
Author: Ian Ayres
Publisher: ReadHowYouWant.com
ISBN: 1458758427
Category : Business & Economics
Languages : en
Pages : 358
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Book Description
Diversification provides a well-known way of getting something close to a free lunch: by spreading money across different kinds of investments, investors can earn the same return with lower risk (or a much higher return for the same amount of risk). This strategy, introduced nearly fifty years ago, led to such strategies as index funds. What if we were all missing out on another free lunch that’s right under our noses? InLifecycle Investing, Barry Nalebuff and Ian Ayres-two of the most innovative thinkers in business, law, and economics-have developed tools that will allow nearly any investor to diversify their portfolios over time. By using leveraging when young-a controversial idea that sparked hate mail when the authors first floated it in the pages ofForbes-investors of all stripes, from those just starting to plan to those getting ready to retire, can substantially reduce overall risk while improving their returns. InLifecycle Investing, readers will learn How to figure out the level of exposure and leverage that’s right foryou How the Lifecycle Investing strategy would have performed in the historical market Why it will work even if everyone does it Whennotto adopt the Lifecycle Investing strategy Clearly written and backed by rigorous research,Lifecycle Investingpresents a simple but radical idea that will shake up how we think about retirement investing even as it provides a healthier nest egg in a nicely feathered nest.
Author: Ian Cooper
Publisher:
ISBN: 9781601987631
Category : International finance
Languages : en
Pages : 133
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Book Description
Home bias - the empirical phenomenon that investors assign anomalously high weights to their own domestic assets - has puzzled academics for decades: financial theory predicts that an internationally well diversified portfolio of stocks and short-term bonds can reduce risk significantly without affecting expected return. Although the globalization of international equity markets has increased international investments, equity portfolios remain severely home biased today, and no single explanation seems to solve the puzzle completely. In this paper, we first provide a thorough description of the equity home bias phenomenon by defining, discussing, and applying the competing measures and presenting some estimates of the costs of under-diversification. Second, we evaluate the explanations for the equity home bias proposed in the literature such as information asymmetries, behavioral aspects, barriers to foreign investment, and governance issues, and conclude that each explanation on its own falls short, suggesting that the equity home bias probably reflects a combination of factors. Lastly, we review the implications of international under-diversification for portfolio formation and the cost of capital of companies.
Author: Michael M. Pompian
Publisher: John Wiley & Sons
ISBN: 1118046315
Category : Business & Economics
Languages : en
Pages : 393
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Book Description
"Pompian is handing you the magic book, the one that reveals your behavioral flaws and shows you how to avoid them. The tricks to success are here. Read and do not stop until you are one of very few magicians." —Arnold S. Wood, President and Chief Executive Officer, Martingale Asset Management Fear and greed drive markets, as well as good and bad investment decision-making. In Behavioral Finance and Wealth Management, financial expert Michael Pompian shows you, whether you're an investor or a financial advisor, how to make better investment decisions by employing behavioral finance research. Pompian takes a practical approach to the science of behavioral finance and puts it to use in the real world. He reveals 20 of the most prominent individual investor biases and helps you properly modify your asset allocation decisions based on the latest research on behavioral anomalies of individual investors.
Author: Jun-Koo Kang
Publisher:
ISBN:
Category : Investments, Foreign
Languages : en
Pages : 100
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Book Description
Author: Reena Aggarwal
Publisher: World Bank Publications
ISBN:
Category : Foreign exchange
Languages : en
Pages : 47
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Book Description
Author: Robert Carver
Publisher: Harriman House Limited
ISBN: 0857197223
Category : Business & Economics
Languages : en
Pages : 277
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Book Description
With the right broker, and just a few hundred dollars or pounds, anyone can become a leveraged trader. The products and tools needed are accessible to all: FX, a margin account, CFDs, spread-bets and futures. But this level playing field comes with great risks. Trading with leverage is inherently dangerous. With leverage, losses and costs – the two great killers for traders – are magnified. This does not mean leverage must be avoided altogether, but it does mean that it needs to be used safely. In Leveraged Trading, Robert Carver shows you how to do exactly that, by using a trading system. A trading system can be employed to tackle those twin dangers of serious losses and high costs. The trading systems introduced in this book are simple and carefully designed to use the correct amount of leverage and trade at a suitable frequency. Robert shows how to trade a simple Starter System on its own, on a single instrument and with a single rule for opening positions. He then moves on to show how the Starter System can be adapted, as you gain experience and confidence. The system can be diversified into multiple instruments and new trading rules can be added. For those who wish to go further still, advice on making more complex improvements is included: how to develop your own trading systems, and how to combine a system with your own human judgement, using an approach Robert calls Semi-Automatic Trading. For those trading with leverage, looking for a way to take a controlled approach and manage risk, a properly designed trading system is the answer. Pick up Leveraged Trading and learn how.
Author: Tobias Moskowitz
Publisher: Crown
ISBN: 0307591808
Category : Sports & Recreation
Languages : en
Pages : 290
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Book Description
In Scorecasting, University of Chicago behavioral economist Tobias Moskowitz teams up with veteran Sports Illustrated writer L. Jon Wertheim to overturn some of the most cherished truisms of sports, and reveal the hidden forces that shape how basketball, baseball, football, and hockey games are played, won and lost. Drawing from Moskowitz's original research, as well as studies from fellow economists such as bestselling author Richard Thaler, the authors look at: the influence home-field advantage has on the outcomes of games in all sports and why it exists; the surprising truth about the universally accepted axiom that defense wins championships; the subtle biases that umpires exhibit in calling balls and strikes in key situations; the unintended consequences of referees' tendencies in every sport to "swallow the whistle," and more. Among the insights that Scorecasting reveals: • Why Tiger Woods is prone to the same mistake in high-pressure putting situations that you and I are • Why professional teams routinely overvalue draft picks • The myth of momentum or the "hot hand" in sports, and why so many fans, coaches, and broadcasters fervently subscribe to it • Why NFL coaches rarely go for a first down on fourth-down situations--even when their reluctance to do so reduces their chances of winning. In an engaging narrative that takes us from the putting greens of Augusta to the grid iron of a small parochial high school in Arkansas, Scorecasting will forever change how you view the game, whatever your favorite sport might be.
Author: Jay Pestrichelli
Publisher: FT Press
ISBN: 0132825279
Category : Business & Economics
Languages : en
Pages : 305
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Book Description
If you're trying to build wealth, sharp market downturns are your worst enemy. And today, they're happening far more often: in the last 18 years, the S&P 500 has experienced sixteen violent market declines. Institutions and professional investors have mastered powerful hedging strategies for dramatically reducing the risks of market volatility. Now, you can do it, too--and you can't afford not to. In Buy and Hedge , two leading investment experts show how to apply hedging as part of a long-term program for growing and preserving your assets. CNBC Fast Money guest Jay Pestrichelli and seasoned financial industry veteran Wayne Ferbert show how to systematically protect yourself against violent downward moves while giving your portfolio maximum room to run in upward markets. The authors' techniques are easy to use, can be applied to most investment vehicles, and require surprisingly little "care and feeding" once implemented. You'll discover how to: · Take advantage of the hedge-building mechanisms built into low-cost index funds · Invest in your ideas with confidence, because you've hedged the downside · Systematically manage portfolios for risk as well as return · Master and apply the "5 Iron Rules of Buy & Hedge” · Use options to manage risk, not to create excess leverage · Generate more dividends · Effectively manage cash
Author: Fang Cai
Publisher:
ISBN:
Category :
Languages : en
Pages : 38
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Book Description
It is an established fact that investors favor the familiar%u2014be it domestic securities or, within a country, the securities of nearby firms%u2014and avoid investments that would provide the greatest diversification benefits. While we do not rule out familiarity as an important driver of portfolio allocations, we provide new evidence of investors%u2019 international diversification motive. In particular, our analysis of the security-level U.S. equity holdings of foreign and domestic institutional investors indicates that institutional investors reveal a preference for domestic multinationals (MNCs), even after controlling for familiarity factors. We attribute this revealed preference to the desire to obtain %u201Csafe%u201D international diversification. We then show that holdings of domestic MNCs are substantial and, after accounting for this home-grown foreign exposure, that the share of %u201Cforeign%u201D equities in investors%u2019 portfolios roughly doubles, reducing (but not eliminating) the observed home bias.
