Investment Theory

Sharpe’s Arithmetic and the Risk Matters Hypothesis

December 1, 2023 — By Victor Haghani, Vladimir Ragulin and James White [note] This not is not an offer or solicitation to invest. Past returns are not indicative of future performance. We thank John Campbell, Jeffrey Rosenbluth and Mark Grinblatt for their help and encouragement. All errors are our own.[/note] In Lake Wobegon, all the women are strong, all the men are good-looking, and all the children are above average.  - Garrison Keillor In 1991, William Sharpe made perhaps

Investment Theory

A Closer Look at "Cut Your Losses Early; Let Your Profits Run"

August 7, 2023 — We've all heard the mantra "Cut your losses early; let your profits run"...but does it really make sense?

Investment Theory

A Missing Piece of the SBF Puzzle

November 28, 2022 — There's been excellent coverage of the public drama surrounding Sam Bankman-Fried, but an important piece of the puzzle has remained under the radar.

Investment Theory

Who Wants Protection Like This?

November 15, 2022 — The S&P 500 is down 15% over the past year, so you'd think it'd be a good time to own some portfolio protection. Unfortunately, that's not the case.

Investment Theory

A Sheep in Wolf’s Clothing

September 26, 2022 — It's convention to take our local currency as the risk-less benchmark - but this assumption, while convenient, can also be misleading.

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