Here's another MOOC, this time on Pension Fund finance. https://novoed.com/rauh-finance/
Josh Rauh is one of the leading academic researchers in this area. This course should be required for anyone who has any involvement with Pension Funds.
Friday, September 6, 2013
In which I am on TV talking about the NC Pension Fund
WRAL (our local TV Channel) recently interviewed me for a segment that they did on alternatives in the NC Pension Fund.
The important takeaway is the initial graphic showing the explosion in fees paid by the fund. This is my main concern - as I have said before, fees destroy returns.
The important takeaway is the initial graphic showing the explosion in fees paid by the fund. This is my main concern - as I have said before, fees destroy returns.
Wednesday, September 4, 2013
Asset Pricing MOOC
If you are interested in Asset Pricing (the pricing of financial securities), then you might be interested in a MOOC being taught by John Cochrane of the University of Chicago.
Cochrane is an expert in asset pricing - he wrote the book, actually, a book called "Asset Pricing", he also blogs as the Grumpy Economist.
This is one of the first high level finance MOOCs that I've seen. Be warned though -- the content will be pretty mathematical.
Cochrane is an expert in asset pricing - he wrote the book, actually, a book called "Asset Pricing", he also blogs as the Grumpy Economist.
This is one of the first high level finance MOOCs that I've seen. Be warned though -- the content will be pretty mathematical.
Monday, August 26, 2013
Josh Brown doesn't understand why people invest in Hedge Funds.
And neither do I. Here's Josh's rant - in his classic style he doesn't hold back.
But I fully agree with him, and I even spent time this summer trying to prevent the State of NC from increasing its allocation to Hedge Funds in the State Pension Fund. I testified in front of the House Finance Committee and also met with the Democractic Caucus and Phil Berger (the Senate Leader), but alas to no avail. Ultimately the bill was signed in to law by Governor McCrory. Wall Street Investment managers will be $200 Million per YEAR better off from this bill.
But I fully agree with him, and I even spent time this summer trying to prevent the State of NC from increasing its allocation to Hedge Funds in the State Pension Fund. I testified in front of the House Finance Committee and also met with the Democractic Caucus and Phil Berger (the Senate Leader), but alas to no avail. Ultimately the bill was signed in to law by Governor McCrory. Wall Street Investment managers will be $200 Million per YEAR better off from this bill.
Andy Silton on Money Management Fees.
Great article in the Sunday paper.
As an exercise - take the dollar amount of your 401-K and managed retirement assets and try to figure out what fees you are paying. If, and that's a big if, you can figure this out, think about whether you are getting value for your money.
If you think you are then you are either drinking the Wall Street kool aid, or you are indexing.
As an exercise - take the dollar amount of your 401-K and managed retirement assets and try to figure out what fees you are paying. If, and that's a big if, you can figure this out, think about whether you are getting value for your money.
If you think you are then you are either drinking the Wall Street kool aid, or you are indexing.
Why the CEO matters - Microsoft sheds the Ballmer discount.
Here's a clear indication of how a CEO can make a difference -- by quitting.
Last Friday, Steve Ballmer, CEO of MSFT, announced that he would retire. The market's reaction was pretty unequivocal.
Last Friday, Steve Ballmer, CEO of MSFT, announced that he would retire. The market's reaction was pretty unequivocal.
Wednesday, July 24, 2013
The truth about the NC pension fund's inflation portfolio.
A must read on how the NC Pension Fund is loading up on commodities. These "assets" aren't investments - they are merely directional bets. The new SB 558 would allow $6 bn of these gambles.
Proponents of commodities argue that they are inflation hedges - that they should go up when inflation increases. While many commodities are correlated with inflation, the risk return trade off is frequently terrible. You are getting a bit of diversification at a big overall risk. Top that off with high fees and they are a drag on the overall portfolio.
Surprisingly to many - one of the best inflation hedges are common stocks - but that's a post for another day.
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