Monte Carlo Is No Crystal Ball

When you can’t solve a problem with a formula or equation, you might turn to a Monte Carlo approach in which a computer simulates outcomes for a given situation using…

Tips for Digesting Financial Information

Portfolio managers are bombarded with financial information and must become adept at sifting out what is useful. In a recent Enterprising Investor article, Robert Martorana, CFA, offers some tips on…

GMO: Don't Bail on Hedge Funds

The fall in rates since the financial crisis has benefited stocks and other long-duration assets while hurting short-duration assets such as hedge funds, says GMO’s Ben Inker. “The characteristics that…