The sum of all things
16 June 2009 23:36
Recipe for getting rich quick
Behind the greed and few of ponzi schemes and tips for spotting a con.
Last week I received a fax from a well know private bank informing me that a relative with the same surname had died intestate, potentially leaving me with a sizeable fortune. All I had to do was contact the sender and take it from there......and for a minute, greed and the possibility of effortless gain took hold, before, albeit with regret, I pressed the delete button.
It is not particularly surprising that so many people, who really should know better, keep getting caught in various iterations of the Ponzi scheme. The latest to hit our headlines, the Tannenbaum affair, is surprisingly familiar to the one promulgated by Charles Ponzi back in 1920. Ponzi promised investors a 50% return in 45 days through international postal coupon arbitrage. Tanne...
03 June 2009 11:25
The "Holy Cows" of asset management
Magda Wierzycka examines five secrets asset managers don't discuss.
Having worked in the local asset management industry for over 15 years, I have encountered many "holy cows" - things we just do not talk about. At the risk of being cold-shouldered at the next industry function that I attend, I will identify a few of these bovine deities, posed as questions, rather than definitive statements. Each of these deserve a fuller explanation and almost certainly vigorous debate.
HOLY COW #1
Despite being an actuary and having analysed performance numbers for many years, I still struggle to answer the question as to whether active asset managers consistently outperform the indices, or add "alpha". Undoubtedly we are going through a period of almost unprecedented market volatility and upheaval. All fundamental as...
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