InhaltsangabeThe new breed of investment professional knows that there is a strong correlation between excellence in investment leadership and excellence in portfolio management-and in this book, a group of experienced investment industry experts puts this paradigm in perspective. Investment Leadership and Portfolio Management provides a top-down analysis of successful strategies, structures, and actions that create an environment for generating strong investment performance and, most importantly, delivering rewarding investor outcomes. By examining how to manage and lead an investment firm through successful investment decision-making processes, this reliable resource reveals what it takes to excel in a radically changed investment environment. Additionally, it includes informative case studies of the approach in action, so you can see the real applications of the ideas addressed throughout these pages. From firm governance and structure for investment and product firms to culture, strategy, vision, and execution, authors Brian Singer-Chairman of the CFA Institute Board of Governors-and Greg Fedorinchik touch upon pressing issues, including the differences between leading and managing; investment philosophy, process, and portfolio construction; communication and transparency; and ethics and integrity. Along the way, you'll also become familiar with: * The role of behavioral biases and market behavior analysis in the investment decision-making process * The appropriate incentive structures and fee models for asset management firms * The practical considerations required for living organizational values, setting goals, and measuring organizational success * The details involved in developing a merito-cratic investment process that rewards indivi-dual contributions * And much more There is no one-size-fits-all approach to leading a diverse group of intelligent individuals and the firms they represent. However, there are a few best practices and rules that can make the task a more manageable one. With the ideas articulated in Investment Leadership and Portfolio Management, you'll gain a better understanding of how to effectively operate within today's competitive investment industry and achieve a significant level of success.

BRIAN SINGER is Chief Investment Officer of Singer Partners and Chairman of the CFA Institute Board of Governors. Previously, he was head of global investment solutions at UBS Global Asset Management (formerly Brinson Partners, Inc.), responsible for asset allocation and currency strategies. Singer is also Emeritus Board Member of the Research Foundation of CFA Institute and an advisory board member of the Journal of Performance Measurement. He is a recipient of the 1991 Graham and Dodd Award and a 2001 recipient of the Dietz Award. Singer holds an MBA from the University of Chicago. GREG FEDORINCHIK is head of investor solutions at Mesirow Advanced Strategies, Inc., an institutional fund of hedge funds firm based in Chicago. Prior to joining Mesirow, he was a senior strategist with the global investment solutions team at UBS Global Asset Management (formerly Brinson Partners, Inc.) and a member of the asset allocation and currency committee. Fedorinchik holds an MBA from the Kellogg School of Management, Northwestern University.

Leseprobe

Preface. Are We Setting a Good Example for Our Children? Overview of the Book. Acknowledgments. Chapter 1: Characteristics of Successful Asset Management Firms. You Can Take the Boy Out of the Culture, but You Can''t Take the Culture Out of the Boy. Size Matters, but Not in the Way Most People Believe Governance: The Guardian of an Investment-Driven Firm Fostering Collaborative Freedom: Everybody is a Peer Integrity: An Unquestionable Characteristic of Success Conclusion Chapter 2: Building a Cathedral. A Framework for Turning the Mission into Collective Action. A Framework for Effective Leadership and Management. Establishing and Living Organizational Values. Creating Mission and/or Investment Philosophy Statements. Strategic Goals and Key Performance Indicators. Conclusion. Chapter 3: Building a Meritocracy. Understanding, Evaluating and Rewarding Employee Contributions. Performance: A Deeper Dive. Horizon: The Fallacy of the Three Year Trade Record. Performance Analysis: Practically Speaking. Top-down and Bottom-up Approach to Determining Performance. Designing Your Rating System to Help Make the Difficult Decisions. What Does the Performance Score Really Mean? Criticality: A Deeper Dive. Merit Zones: Putting It All Together. Communication of Performance and Criticality. Values and Compensation. Conclusion. Chapter 4: Investment Philosophy and Process. A Lofty Cathedral Needs a Deep Foundation. The Importance of Investment Philosophy and Process in Investment Organizations Investment Philosophy: Core Beliefs Investment Process: Control and Anarchy Avoiding the Pitfalls of Behavioral Biases Conclusion. Chapter 5: Investment Process In an Evolving World. Implementation Overview: "The How" of the Investment Process. Fundamental Valuation. Market Behavior and How It Challenges the Fundamental Investor. Team Behavior: Lessons for the CIO from Jelly Beans and Freud. Portfolio Design. Conclusion. Chapter 6: Communication for Superior Client Outcomes. The Problem: Human Nature. A Classic Tale. Case 1: Individual Investors, the Impact of Performance Chasing. Case 2: Are Institutional Investors the "Smart Money?" The Reality of Investing in Equities. The Mathematics of Recovery. Dilemma: Investment Firm or Distribution Shop? The Importance of Culture. Sales and Marketing in an Investment Firm. Conclusion. Appendix: Client Communication in Extreme Market Conditions. Chapter 7: Where are the Clients'' Yachts? Reasonable Fee Structures. The "Gamma Trade". Anatomy of a Blowup. Catch 22. Faults of Existing Fee Structures. Our Recommendation: High Integrity Fee Structures. Conclusion. Chapter 8: Final Thoughts. Characteristics of Great Asset Management Firms. It Starts With a Shared Mission and Values. True Meritocracy. Avoiding the Pitfalls. For Successful Client Outcomes: Communicate, Communicate, Communicate. It''s All About Incentives. Integrity. Notes. Bibliography. About the Authors. Index.