Vol. 17. No.1, 2019 Rational Investing: The Subtleties of Asset Management by Hugues Langlois and Jacques Lussier reviewed by Savannah Smith View PDF… Read more
2019
Explaining Buyout Industry Returns: New Evidence
Vol. 17 No.1, 2019 David Turkington Traditional equity factors such as the leveraged equity risk premium, the small-cap premium, and the value premium have had high historical returns on average, as has the buyout fund industry in aggregate. Previous research has argued that these factors explain the excess performance of private equity over public equity… Read more
Does Extreme Correlation Matter in Global Equity Asset Allocation?
Vol. 17 No.1, 2019 Bruno Solnik and Thaisiri Watewai Global asset allocation provides risk diversification. But international market correlation increases sharply during global crises and diversification benefit disappears when it is most needed. We model these correlation breaks and derive the asset allocation implications. The model can quickly detect crises and suggests adapting allocation for… Read more