Active Investment Management Finding and Harnessing Investment Skill [Hardcover]

Active Investment Management looks at where active management has come from, where it is today, what problems it faces and where the answers to these questions are leading it. The book addresses the major issues concerning the key groups within the industry.

Charles Jackson's wonderfully readable book will be essential reading for the practitioner and is broken down into five sections covering the whole spectrum of active investment management:

* asset classes and products
* balancing risk and return
* active product selection
* the nature of skill
* the price of skill

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Preface xv

Acknowledgements xix

PART I ASSET CLASSES AND PRODUCTS 1

1 Stocks and Shares 3

1.1 Three key preconditions 3

1.1.1 Property rights 3

1.1.2 Limited liability 4

1.1.3 Public financial markets 5

1.2 Market performance 5

1.2.1 Stock indices and performance measurement 6

1.2.2 Twentieth century performance 6

1.3 Active equity management 8

1.3.1 Dividend valuation models 9

1.3.2 Growth stocks 10

1.3.3 Small stocks 10

1.3.4 Sorting active approaches 10

1.4 Institutional investors 11

1.4.1 Life insurance 11

1.4.2 Pension funds 12

1.5 Conclusion 12

Endnotes 13

2 Investment Products 15

2.1 Traditional products 15

2.1.1 Closed-end products 15

2.1.2 Open-ended products 17

2.1.3 Index products 19

2.2 Alternative products 21

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