Are Backtested Results Effective?

One of the key factors influencing the success of raising capital for a new investment strategy is what is known as a “backtest.” When an investment strategy has little to no auditable track record (i.e. the strategy is new or hasn’t launched yet), firms looking to raise capital for an algorithmic or quantitative strategy tend…

The Role of ESG In Investment

Even though it is still too early to determine whether a framework for making investments based on environmental, social, and governance (ESG) considerations is accretive to portfolio performance from purely a return perspective, there is no arguing that ESG policies are becoming an integral part of the investment management process for asset allocators. This article…

What Finance Can Learn from Computer Scientists

The realization that economics is not a hard science because it is unable to describe the real-world economy, is not a new claim. Presenting an “economically rational” world has failed to describe the real-world economy, and therefore has been under attack by behavioural economists for quite some time. In an interview, Frank Fabozzi opines that…