THE EVOLUTION OF ACADEMIC FINANCE

Old finance

Analysis of financial statements and the nature of financial claims (Graham and Dodd). Based on accounting and law.

modern finance
Valuation based on rational economic behavior. Optimisation (Markowitz), CAPM (Sharpe, Lintner and Mossen). Efficient Market Hypothesis (EMH, Fama 1970).
new finance
Efficient Market (R. Haugen), factor investing risk (Chen, Roll & Ross) and behavioural models. Based on econometrics , statistics and psychology.

EVOLUTION OF THE INVESTMENT PARADIGM

A long time ago – Stock Picking and Market Timing – Investment Research was the key.

Yesterday – Stocks offer better returns than bonds in the long run Stocks are riskier than bonds in the short run. Indexing beats stock selection – Asset Allocation and Benchmarks were keys.

Today – Separation between alpha and beta. Absolute rather than relative return – Risk Management, econometrics and psychology are keys. We need to move away from the concept of benchmarks, information advantages and simple buy-and-hold strategies. Adopt a dynamic, flexible approach to the investment problem.

Hedge Funds are one Solution

WHY TO INVEST IN HEDGE FUNDS?

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WHY TO INVEST IN GODHAND CAPITAL

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CORE BONDS

BONDS PORTFOLIO ACTIVELY MANAGED

INVESTMENT UNIVERSE
Bonds Portfolio

  • Primary and secondary market access
  • Size: > 500mio issued
  • USD/EUR/GBP/CHF/CAD/AUD/SEK/NOK
  • Sov. and Corp. high grade / Investment grade / High yield (sub. bonds max 10%)
  • Developed and emerging market (EM max 30%)

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