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Postmodern Finance

Postmodern Finance is the underlying thesis of our investment process and all topics that enhance our ability to invest. This is an evolution of modern portfolio theory and takes a new perspective on investment management.

19 02, 2018

Testosterone is not an Investment Performance Enhancer

By |2020-04-27T17:19:29+00:00February 19th, 2018|Investing, Postmodern Finance|Comments Off on Testosterone is not an Investment Performance Enhancer

Finance, especially investment management, has traditionally been a male-dominated industry, often noted for its swashbuckling machismo, aggressive competitiveness, and otherwise male-high-school-jock-stereotype nature as in popular movies like Wall Street and The Wolf of Wall Street. In Michael Lewis's debut book Liar's Poker, about the time he spent working at a major investment bank, the top [...]

25 07, 2017

Profiting from the Recklessness of Others

By |2020-04-27T17:19:30+00:00July 25th, 2017|Investing, Postmodern Finance|Comments Off on Profiting from the Recklessness of Others

A couple months ago, I wrote about the dangers of levered ETFs, showing how these products designed to juice investor's returns end up eroding capital due to the subtle mathematical logic of compounding. In my last post, I followed up on the topic by describing the Kelly Criterion, a mathematical [...]

20 06, 2017

The Line Between Aggressive and Crazy

By |2023-12-12T22:39:49+00:00June 20th, 2017|Investing, Postmodern Finance|Comments Off on The Line Between Aggressive and Crazy

Suppose I offer you a bet. Flip a coin, heads you lose your entire bet, tails you win it back plus one and a half times, so a ten dollar bet becomes $25. And furthermore I'll let you keep making this bet as many times as you like over the [...]

22 05, 2017

“Make it a Quadruple”

By |2020-04-27T17:19:30+00:00May 22nd, 2017|Investing, Postmodern Finance|Comments Off on “Make it a Quadruple”

This month, the financial press has been abuzz with the latest case study in Wall Street's storied history of feeding speculative frenzies: the quadruple-levered ETF. On May 2 the SEC approved a request to list two ETFs, the ForceShares Daily 4X US Market Futures Long Fund under the ticker UP, and [...]

24 01, 2017

Culture, Investor Behavior, and the Market

By |2020-04-27T17:19:49+00:00January 24th, 2017|Investing, Postmodern Finance|Comments Off on Culture, Investor Behavior, and the Market

Investors, being human, are not always perfectly rational, but sometimes make decisions that are influenced by their emotions or cognitive biases, which can effect market prices in interesting and predictable ways. Such is the one sentence summary and motivating principle behind behavioral finance, a topic I've written about quite a [...]

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