How much business risk is hiding in your portfolio?

In Free by Cam Hui

This is the second in an occasional series of posts on how to build a robust investment process. Part 1 was addressed to the individual investor and trader (see The ways your trading system could lead you astray). This posts explores the issues that face the professional and institutional investor. I had illustrated in the past why managers closet index. …

The ways your trading model could lead you astray

In Free by Cam Hui

I have had a number of discussions with subscribers asking for more “how to” posts (see Teaching my readers how to fish). This will be one of a series of occasional posts on how to build a robust investment process. For traders and investors, one of the challenges is how to build a robust discipline that works well through different …

Thanks, but I’m not that good!

In Free by Cam Hui

It’s always nice to get positive feedback from subscribers. One subscriber praised me for my trading model and wanted real-time updates of signal changes (which I already provide but wound up in his spam folder).   Another subscriber complimented me on my series of tweets indicating an oversold market on Thursday, which suggested that the market was poised to rally …

If machines are human, would you let one marry your daughter?*

In Free by Cam Hui

Several months ago, the internet was all abuzz over the victory of Google’s AlphaGo program beating Go grandmaster Lee Sedol (see story here). As the game of Go is a computationally and mathematically complicated game and the number of variations in the game is an order of magnitude higher than chess, it was a great victory for the kinds of …

The dirty little secret behind “smart beta” investing

In Free by Cam Hui

Some minor buzz has arisen among finance academics and professionals as a result of a paper by Ronald Kahn and Michael Lemmon, both of whom are employed by Blackrock, entitled The Asset Manager’s Dilemma: How Smart Beta Is Disrupting the Investment Management Industry. Here is the abstract: Smart beta products are a disruptive financial innovation with the potential to significantly …

Teaching my readers how to fish

In Free by Cam Hui

In the past week, I had discussions with several different people about the operating philosophy of Humble Student of the Markets, The objective of the website can be summarized by a variation of an old adage: Give a man a fish, he’ll eat for a day. Teach a man how to fish…he’ll want to get a boat. I don`t want …

The price of success

In Free by Cam Hui

Last year, my Valentine’s Day post was about how Facebook analyzed the behavior of who fall in love (see Falling in love, the Facebook version). This year, I thought that I would highlight the price of success for hedge fund managers. I highlight a research paper entitled Limited Attention, Marital Events, and Hedge Funds. Here is the abstract (emphasis added): …