Moving Beyond Modern Portfolio Theory Investing That Matters
Auteurs : Lukomnik Jon, Hawley James P.
Moving Beyond Modern Portfolio Theory: Investing That Matters tells the story of how Modern Portfolio Theory (MPT) revolutionized the investing world and the real economy, but is now showing its age. MPT has no mechanism to understand its impacts on the environmental, social and financial systems, nor any tools for investors to mitigate the havoc that systemic risks can wreck on their portfolios. It?s time for MPT to evolve.
The authors propose a new imperative to improve finance?s ability to fulfil its twin main purposes: providing adequate returns to individuals and directing capital to where it is needed in the economy. They show how some of the largest investors in the world focus not on picking stocks, but on mitigating systemic risks, such as climate change and a lack of gender diversity, so as to improve the risk/return of the market as a whole, despite current theory saying that should be impossible. "Moving beyond MPT" recognizes the complex relations between investing and the systems on which capital markets rely, "Investing that matters" embraces MPT?s focus on diversification and risk adjusted return, but understands them in the context of the real economy and the total return needs of investors.
Whether an investor, an MBA student, a Finance Professor or a sustainability professional, Moving Beyond Modern Portfolio Theory: Investing That Matters is thought-provoking and relevant. Its bold critique shows how the real world already is moving beyond investing orthodoxy.
Introduction 1. The MPT Revolution Devours Its Children 2. The MPT Paradox 3. Short-Termism 4. Everything Old Is New Again 5. From Dividends in Nutmeg to Creating $5 Trillion Conclusion Bibliography
Jon Lukomnik is the managing partner of Sinclair Capital LLC, a strategic consultancy to institutional investors, and a Senior Fellow at the High Meadows Institute.
James P. Hawley is Head of Applied Research at TruValue Labs, San Francisco and Professor Emeritus School of Economics and Business, Saint Mary College of California.
Date de parution : 04-2021
15.6x23.4 cm
Date de parution : 04-2021
15.6x23.4 cm
Thèmes de Moving Beyond Modern Portfolio Theory :
Mots-clés :
MPT; Index Funds; Modern Portfolio Theory; Asset Management Industry; ESG Factor; investing; Efficient Market Hypothesis; financial systems; Systematic Risk; systemic risks; Extended Intermediation; evolution of MPT; Beta Activism; returns on investment; Idiosyncratic Risk; mitigating systemic risks; Portfolio Construction; risk adjusted return; Asset Management; diversification; Smart Beta; unorthodox investing; AMR; Climate change; Proxy Access; CFA Institute; Gender diversity; Systematic Risk Factors; ESG Performance; Real economy; Corporate Governance; Institutional Asset Owners; Big Data Analytics; Stage Governance; Random Walk Theory; ESG Integration; CAPM; Beta Portfolio