Portfolio Indexing: Theory and Practice (Frontiers in Finance Series) - Hardcover

Hutchinson, Harold

Hardcover

ISBN 10: 0471988685 ISBN 13: 9780471988687

Publisher: Wiley, 1999

Synopsis

The dominant paradigm in modern-day fund management remains the Capital Asset Pricing Model (CAPM). Originally developed in the 1960s as an explanatory and predictive model of capital market behaviour, it has subsequently acquired enormous significance in many fund-management institutions.

"Harold Hutchinson's Portfolio Indexing is a long-overdue theoretical and practical perspective on the 'managers versus trackers' debate. He concludes that the indexing solution to risk management is flawed and that individual judgment will always have a proper role to play in investment. This much-needed book will hopefully help to stop the current steam-rolling move of the fund management industry towards indexing in its tracks, and encourage a more balanced view of the benefits of the active manager, especially in volatile or falling markets." Phillip Keane, Director, Industrial Bank of Japan Asset Management International Ltd

"Portfolio Indexing challenges the growing consensus in favour of portfolio indexing as the optimal investment strategy. His devastating criticisms of the theoretical foundations underlying indexing, and his plea for a more modest inductive approach to portfolio management, have huge and as yet untapped implications for the asset management industry." Dr Andrew Allan, Vice President, Salomon Smith Barney

Professionals, students and amateur investors alike will profit from this enjoyable tract on how to maintain and navigate vehicles of investment.

About this title

From the Inside Flap

In Portfolio Indexing, Harold Hutchinson unravels the foundations underlying the CAPM-indexed portfolio orthodoxy.

" "Difficult concepts are explained in a simple, intuitive way but without loss of rigour, and are illuminated by the author's firsthand knowledge of how financial markets work. Portfolio Indexing does for financial markets what Zen and the Art of Motorcycle Maintenance did for natural philosophy." Rod Cross, Professor of Economics ICMM, University of Strathclyde

About the Author

Harold Hutchinson has degrees in Economics from the University of St. Andrews, Scotland and from St. Antony's College, University of Oxford. He began his career as a lecturer in finance at the University of St. Andrews. He then moved to the Swedish stockbroking group, Carnegie International, where he was European Head of Research. In 1992, he moved to live in Spain with the UK merchant banking group, Singer and Friedlander, where he helped set up from scratch an Iberian and Latin American equities business of which he was CEO. After a brief period at the Spanish banking group, Banco Santander, he is now Head of Sales and Research at the Spanish office of Credit Lyonnais Securities Europe. In addition to these positions, he acted for a time as adviser to the Liberty Newport Latin American SICAV. Besides his current executive role at Credit Lyonnais, Harold is also a Director at the Regulatory Policy Institute in Oxford, which is dedicated to independent policy advice on regulatory issues, and is a non-executive director at Quantum Partnership, a consultancy specialising in innovative solutions for operational and strategic problems in business. He is married with two young children.

Edition details

• Publisher: Wiley
• Publication date: 1999
• ISBN 10: 0471988685
• ISBN 13: 9780471988687
• Binding: Hardcover
• Language: English
• Edition number: 1
• Number of pages: 180