rel="nofollow" href="#ulink_481bb7f8-b064-57b4-995f-2837801f6504">Company balance sheet leverage
Price target creation and channels
CHAPTER 10: CAPITAL ALLOCATION
Capital expenditures (capex) and research and development (R&D)
Acquisitions and corporate strategy
Stock buybacks, dividends, and debt pay-down
Return on equity of new investments: First priority
CHAPTER 11: PORTFOLIO MANAGEMENT
Portfolio construction: Top down
Portfolio construction: Bottom up
Gross and net exposures
Market timing
Portfolio risk
Equity factors and your portfolio
Volatility and behavioral mistakes
Managing individual portfolio positions
Portfolio rebalancing
Conviction and portfolio management
Managing individual portfolio positions and behavioral pitfalls
Trading
Options
CHAPTER 12: SHORT INVESTING
Why manage a short portfolio?
The shorting paradigm and short portfolio management
Quantitatively the risk reward ratio is different
Short security selection
7 PART III: THE BIGGER PICTURE CHAPTER 13: GOAL CONGRUENCE, FIDUCIARY RESPONSIBILITY, AND LEARNING Executive compensation and board structure Assets under management (AUM) and fee structures Corporate acquisition conflicts Country regulatory issues Learning
8 GLOSSARY
9 INDEX
List of Illustrations
1 Chapter 1FIGURE 1.1 36-month rolling alpha of the HFRI Fund of Funds Composite Index...FIGURE 1.2 Net asset flows into hedge fundsFIGURE 1.3 Percentage of US equity funds that beat the S&P 500 (five-year av...FIGURE 1.4 S&P 500 dispersion of the top and bottom decile from 1986 to June...
2 Chapter 2FIGURE 2.1 Global central bank assets—US Fed, Bank of Japan, and European Ce...FIGURE 2.2 US Federal Funds rate (1998 to November 2019)FIGURE 2.3 Federal Reserve assets and the S&P 500 Index (2001 to November 20...FIGURE 2.4 S&P 500 utilities sector trailing 12-month P/E ratio (2009 to Nov...FIGURE 2.5 S&P 500 utilities sector dividends paid per share and free cash f...FIGURE 2.6 S&P 500 consumer staples sector trailing 12-month P/E ratio (2009...FIGURE 2.7 S&P 500 net income margin (1990 to November 2019)FIGURE 2.8 S&P 500 price-to-sales ratio (1990 to November 2019)FIGURE 2.9 30-year average US fixed mortgage rate (1997 to November 2019)FIGURE 2.10 US outstanding credit card debt (1997 to October 2019)FIGURE 2.11 S&P 500 Consumer Discretionary Sector Price Index (2009 to Octob...FIGURE 2.12 University of Michigan Consumer Sentiment Index (1994 to October...
3 Chapter 3FIGURE 3.1 Innovation adoption: Number of years to 25% US population adoptio...FIGURE 3.2 Pace of innovation in business cycle termsFIGURE 3.3 Economic cycles and mean reversionFIGURE 3.4 US venture capital invested by deal flow (billions of $US)FIGURE 3.5 US share of global venture capitalFIGURE 3.6 Average time being held privately of venture capital backed compa...FIGURE 3.7 US venture capital invested in unicorns (billions $US)FIGURE 3.8 Initial public offerings (IPOs)FIGURE 3.9 US corporate venture capital raised (billions $US)FIGURE 3.10 Private equity dry powder (billions $US)
4 Chapter 4FIGURE 4.1 Percentage of overall equity investments in passive vehicles 2009...FIGURE 4.2 Percentage of US equities in which Vanguard owns more than 5% of ...FIGURE 4.3 Percentage of passive investments in Japanese equity accounts (Bo...FIGURE 4.4 20-year annualized returns by asset class 1998 to 2018
5 Chapter 5FIGURE 5.1 Percentage of US
