Khalid Ghayur – Active Beta Indexes
An informative information providing new and progressive methods to consider energetic administration and investing
ActiveBeta Indexes presents thrilling new analysis that reveals how above-market returns may be achieved in a low-cost, clear, and environment friendly style. Active Betas mirror basic funding ideas which have lengthy been the muse of energetic fairness returns, however are generally masqueraded as funding talent, or alpha. This groundbreaking ebook lifts the veil to uncover the frequent sources of energetic returns and divulges their beta-like properties.
Developed by main funding practitioners at Westpeak Global Advisors, ActiveBeta Indexes introduces Active Beta sources and explains how the conduct of short- and long-term earnings progress provides rise to systematic sources of energetic fairness returns.
- Details a brand new index framework and analysis findings that might change the face of energetic portfolio administration
- Presents patent-pending improvements for establishing fashion indexes and informationally-efficient energetic portfolios
- Explores the historic efficiency of ActiveBeta Indexes
Wealth advisers, consultants, pensions and endowments, and different institutional traders will discover the mental honesty of ActiveBeta Indexes a refreshing perspective on the energetic administration business. They may even discover it a helpful information to a extra strategic allocation of their danger and administration payment budgets – a rising necessity in these difficult occasions.
From the Inside Flap
What is the character of energetic fairness administration returns? Do energetic fairness managers really add worth? Do they’ve idiosyncratic talent or are they offering solely beta-like systematic sources of energetic return? In this groundbreaking ebook, the authors present new solutions to a number of the oldest questions on investing.
What if, they recommend, a good portion of energetic administration returns have been pushed by systematic sources of energetic fairness returns? And what if these systematic energetic return sources might be captured extra effectively, transparently, and cost-effectively in a passive index construction? The consequence can be an progressive framework—ActiveBeta® Indexes.
ActiveBeta Indexes presents an funding resolution that higher defines the funding kinds of energetic managers (i.e., frequent sources of energetic returns) and gives an environment friendly, clear, and cost-effective passive seize of a good portion of conventional energetic administration returns. The authors first describe the premise for and evolution of market and magnificence indexes, exploring their improvement and their limitations. They then element the theoretical framework and supporting analysis behind the ActiveBeta Indexes. After introducing the idea of Active Betas, they current their analysis into the character and relationships, in addition to the pricing and persistence, of the systematic sources of energetic fairness returns. They proceed as an instance the methodology employed to create the ActiveBeta Indexes and provide an in depth evaluation of their efficiency. The authors then reveal the assorted purposes of the ActiveBeta Indexes, together with their makes use of in fashion investing, efficiency attribution, portfolio structuring, and asset allocation. They conclude by providing quite a lot of customizable, various options for capturing the systematic sources of energetic fairness returns.
The funding business must take a important take a look at the present state of conventional energetic administration and magnificence investing. The ActiveBeta Framework presents explanations to unravel most of the puzzles within the present funding literature and apply. Portfolio managers, asset managers, wealth advisors, pensions and endowments, and different institutional traders looking for to enhance returns whereas lowering prices will discover ActiveBeta Indexes an answer to their efficiency wants in these difficult occasions.
From the Back Cover
A Groundbreaking New Index Framework
“By providing new answers to some of the oldest questions about investing, this innovative framework offers the investment community a chance to reinvent itself.”
—From the Foreword by Andrew W. Lo
How did we find yourself with progress and worth as the usual dichotomy of investing? Are there higher methods of defining funding kinds? ActiveBeta Indexes presents a extra related classification of funding approaches than the normal classifications in a groundbreaking new index that captures systematic energetic return sources.
The authors define the analysis and techniques for capturing systematic sources of energetic fairness returns normally attributed to energetic administration through a passively managed index—in a clear method with decrease danger and larger diversification, at a decrease value, than energetic administration. Their new indexes extra precisely mirror the funding processes and investable universes of energetic progress, worth, and core managers—and thus characterize extra applicable efficiency benchmarks for energetic fashion managers.
These thrilling new findings may change the face of energetic portfolio administration. The backside line: why pay excessive charges for energetic administration efficiency when you will get a good portion of this efficiency at a fraction of the price?
About the Author
Khalid Ghayur is the CEO and CIO of Westpeak Global Advisors, LP. He was director of analysis coverage, a member of the Global Executive Committee, and chairman of the Index Policy Committee at Morgan Stanley Capital International (MSCI) Barra. Prior to this, he was international head of quantitative analysis and technique for HSBC Global Asset Management. He is a CFA charterholder, has served on the Board of Governors of the CFA Institute, and is a former trustee of the CFA Institute Research Foundation. He acquired an MBA in finance and worldwide enterprise from the École Nationale des Ponts et Chaussées and an MA and BA in economics from the University of Karachi.
Ronan G. Heaney is Director of Research at Westpeak. Before becoming a member of Westpeak, he was a software program architect with Multum Information Services and a senior software program developer at Swiss Bank Corp. He holds an MS in pc science from Purdue University and a BS in utilized physics from Dublin City University, Ireland.
Stephen A. Komon is a Senior Portfolio Manager at Westpeak. Prior to this, he was vice chairman of international change and commodities at J.P. Morgan & Co., and he additionally held positions with UBS AG/Swiss Bank and Dean Witter Reynolds. He holds an MBA in finance and accounting from the University of Chicago Booth School of Business and a BS in commerce from the University of Virginia. He can also be a CFA charterholder.
Stephen C. Platt is Director of Portfolio Management at Westpeak. Before becoming a member of Westpeak, he cofounded and was a senior vice chairman of Cordillera Asset Management. He holds a BS in finance from the University of Colorado Leeds School of Business and is a CFA charterholder.