Risk-Based Investment Management in Practice (Global Financial Markets) - Hardcover

Cowell, Frances

Hardcover

ISBN 10: 1137346396 ISBN 13: 9781137346391

Publisher: Palgrave Macmillan, 2013

Synopsis

Surely managing investments is a matter of taking calculated risks to give the best chance of a decent return?

But how does it work in practice?

Written by a practitioner with 30 years in investment management, both as portfolio manager and as Chief Risk Officer, Risk-Based Investment Management in Practice provides a comprehensive, jargon-free account of modern investment management, with a focus on how investment risk affects the decisions of professional investment managers. The book begins with the fundamentals of fund structures, investment objectives and strategy, and then moves on to disentangle portfolio selection practices and how effective risk management adds value, sorting out:

- how investment risk is different from risk in banks
- how investment risk models work - and sometimes don't work
- what risk reports actually tell you - and what they do not
- what value derivatives can add to performance and how and why they can unravel
- how to differentiate genuine skill, from outcomes that are just lucky.

Written in a practical and accessible way, the book addresses the key challenges of modern risk based investment management, and will appeal to investors of all levels as a guide and reference to this important area.

About this title

Book Description:

A practitioner's account of how investment risk affects the decisions of professional investment managers

About the Author:

FRANCES COWELL is Director of Risk Consulting for R-Squared Risk Management, where she advises on the practical application and interpretation of portfolio risk profiles and risk management in extreme and stressed market conditions. She has worked in the investment industry for over 30 years, initially as research analyst and investment manager for public and private pension funds. She managed domestic and international equities portfolios and multi-asset class portfolios, oversaw the management of protected and guaranteed minimum return funds and managed relative value portfolios that exploited mispricing in derivatives markets. During this time she worked with leading practitioners and academics to apply established investment theory and defensive use of derivatives to practical challenges in order to deliver defined outcomes for pension and retail funds across asset classes. She was an early adherent of investment management from a risk perspective, which served her well throughout the market bubbles and shocks of the late 1980s, 1990s and of course 2007-08. For the past 15 years, she has specialized in investment risk management for multi-asset class portfolios, specialist portfolios and for in-house managed hedge funds. As Chief Risk Officer for two London investment management firms, she managed a team of professional risk managers and attended to the regulatory and governance demands of multiple investment funds.

She studied at the University of New South Wales and the Australian Graduate School of Management, earning a Bachelor of Arts and an MBA. She is an occasional contributor to industry publications on the subject of risk management for derivatives and hedge funds and is a founding director of the London Quant Group.

About this edition

• Publisher: Palgrave Macmillan
• Publication date: 2013
• ISBN 10: 1137346396
• ISBN 13: 9781137346391
• Binding: Hardcover
• Number of pages: 487