The 2012 CFA Institute Annual Conference The CFA annual conference spawned this series of postings about

important investment issues. Some of them appeared on the research puzzle [rp] and some on research puzzle pix [pix]; the speakers reviewed are noted after the ~.

a bad bet

A conference can expose you to new concepts, remind you of old ones, and give you a sense of the business. A series on the CFA annual conference begins with a simple theme. [pix ~ Ailman] Years after the financial crisis, not much has really changed. What does that mean for investment professionals who toil in the markets day after day? [rp ~ Montier] At an investment conference, you are bound to see lots of charts displaying the performance of complex products. Here are a few of those lines; what story do they tell? [pix ~ CBOE] Two leading lights of academia appeared on the stage (with radically different conceptions of the economic world), illuminating the interplay of their ideas with the investment industry. [rp ~ Fama and Kahneman] Over time, some hedge funds have produced eye-popping returns (and interesting stories along the way). But what's in store for the industry going forward? I wanted to know. [pix ~ Mallaby] One founder of the futures industry is an advocate for using financial innovation to solve the problems of the world. It turns out that can be a very controversial idea. [rp ~ Sandor] While everyone looks to the challenges of Europe, there are questions about the economic miracle that has dominated the world stage for a number of years. What comes next? [pix ~ Pettis, Ritholtz, and Mauldin.] Most investment organizations are quite similar in structure and they tend to have professionals with prototypical styles. As a result, the discourse can be too predictable. [rp ~ Redding and Ware.]

the flaws of finance

capturing volatility

dance of the heavyweights

the past and the future

good derivatives

chinatown

conversations

continues . . .

marginally less oblivious

What does it take to successfully relate to clients and prospects? What you talk about is important, but the power of your message stems from how you convey it. [rp ~ Ziegler.] Markets and organizations are made up of connections. Understanding them will be an important part of the investment discipline in the future. [rp ~ Uzzi.] A long look at the relationships between various asset classes illustrates how they can change over time, presenting questions about the assumptions behind investment decisions. [pix ~ Axioma.] Two sessions at the CFA conference focused on developments in market structure, resulting in occasional fireworks. I shoot off a few of my own in response. [rp ~ Bradley, Hambrecht, Niederauer, Callahan, Narang, and Saluzzi.] What do investors think is a "respectable return" on their investments? Some thoughts on the disappearance of a high-profile survey of the past and today's more muted expectations. [pix] The investment business is at a crossroads. Trust in the industry has plummeted, but it is business as usual. Now is the time when the professionals need to stand up. [rp ~ Rogers.] The smallest stocks have performed the best over the last many years. But are they readily "investable" and what is the best way to do so? The results in theory and practice. [pix ~ CRSP.] After the CFA annual conference, I went looking for something completely different. But issues and themes that characterize the investment business today followed me. [rp]

network dynamics

correlation roller coasters

they call it innovation

lost expectations

a call to action

the one percent

at the institute

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