{"product_id":"winning-at-active-management-isbn-9781119051824","title":"Winning at Active Management","description":"\u003cp\u003e\u003ci\u003eWinning at Active Management\u003c\/i\u003e conducts an in-depth examination of crucial issues facing the investment management industry, and will be a valuable resource for asset managers, institutional consultants, managers of pension and endowment funds, and advisers to individual investors. Bill Priest, Steve Bleiberg and Mike Welhoelter all experienced investment professionals, consider the challenges of managing portfolios through complex markets, as well as managing the cultural and technological complexities of the investment business.\u003c\/p\u003e \u003cp\u003eThe book’s initial section highlights the importance of culture within an investment firm – the characteristics of strong cultures, the imperatives of communication and support, and suggestions for leading firms through times of both adversity and prosperity.\u003c\/p\u003e \u003cp\u003eIt continues with a thorough discussion of active portfolio management for equities. The ongoing debate over active versus passive management is reviewed in detail, drawing on both financial theory and real-world investing results. The book also contrasts traditional methods of portfolio management, based on accounting metrics and price-earnings ratios, with Epoch Investment Partners’ philosophy of investing on free cash flow and appropriate capital allocation.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eWinning at Active Management\u003c\/i\u003e closes with an inquiry into the crucial and growing role of technology in investing. The authors assert that the most effective portfolio strategies result from neither pure fundamental nor quantitative methods, but instead from thoughtful combinations of analyst and portfolio manager experience and skill with the speed and breadth of quantitative analysis. The authors illustrate the point with an example of an innovative Epoch equity strategy based on economic logic and judgment, but enabled by information technology.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eWinning at Active Management\u003c\/i\u003e also offers important insights into selecting active managers – the market cycle factors that have held back many managers’ performance in recent years, and the difficulty of identifying those firms that truly possess investment skill. Drawing on behavioral economic theory and empirical research, the book makes a convincing case that many active investment managers can and do generate returns superior to those of the broad market.\u003c\/p\u003e \u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003eActive Management is Not Dead Yet\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I Culture\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Culture at The Core 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Original Organizational Culture: Command-and-Control 5\u003c\/p\u003e \u003cp\u003eAn Alternative Culture for Knowledge Businesses 8\u003c\/p\u003e \u003cp\u003eThe Partnership Culture Model 10\u003c\/p\u003e \u003cp\u003eJustice and Fairness 17\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Culture in Investment Management 21\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValues 22\u003c\/p\u003e \u003cp\u003eIntegrity 26\u003c\/p\u003e \u003cp\u003eTrust 28\u003c\/p\u003e \u003cp\u003eCulture and Clients 32\u003c\/p\u003e \u003cp\u003eFirm Culture under Stress 34\u003c\/p\u003e \u003cp\u003eCulture in Recruiting 35\u003c\/p\u003e \u003cp\u003eAcquisitions 38\u003c\/p\u003e \u003cp\u003eEvolution of Culture 41\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II Philosophy and Methodology\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 The Nature of Equity Returns 49\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLinkages: The Real Economy and the Financial Economy 49\u003c\/p\u003e \u003cp\u003eComponents of Stock Returns 51\u003c\/p\u003e \u003cp\u003ePrice-Earnings Ratios 53\u003c\/p\u003e \u003cp\u003eThe Historical Makeup of Stock Returns 59\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 The Great Investment Debate: Active or Passive Management? 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Debate Is Timeless 65\u003c\/p\u003e \u003cp\u003eAn Elegant Theory: The Capital Asset Pricing Model 66\u003c\/p\u003e \u003cp\u003eFurther Elegance: The Efficient Market Hypothesis 68\u003c\/p\u003e \u003cp\u003eReality Intrudes 69\u003c\/p\u003e \u003cp\u003eThe Problem with MPT 71\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 A More Human Description of Investors and Markets: Behavioral Finance 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLoss Aversion 74\u003c\/p\u003e \u003cp\u003eMental Accounting 75\u003c\/p\u003e \u003cp\u003eMinimizing Regret 76\u003c\/p\u003e \u003cp\u003eOverconfidence 77\u003c\/p\u003e \u003cp\u003eExtrapolation and Reversal 78\u003c\/p\u003e \u003cp\u003eInvestor Behavior in Action 78\u003c\/p\u003e \u003cp\u003eMPT Still Lives 80\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Active Versus Passive Management: The Empirical Case 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMarket Regimes 87\u003c\/p\u003e \u003cp\u003eCorrelation and Dispersion 87\u003c\/p\u003e \u003cp\u003eCompany Quality 89\u003c\/p\u003e \u003cp\u003eThe Weight of Cash 90\u003c\/p\u003e \u003cp\u003eLuck versus Skill 91\u003c\/p\u003e \u003cp\u003eInvestors Voting with Their Dollars 96\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 The Case for Active Management 101\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eApril 2015: Investment Giants Square Off in New York City 101\u003c\/p\u003e \u003cp\u003eAn Active-Passive Equilibrium 103\u003c\/p\u003e \u003cp\u003eThe Case for Active Management 105\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Debates On Active Managers’ Styles and Methods 109\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eManager Style 110\u003c\/p\u003e \u003cp\u003eFree Cash Flow Is the Measure of Value 112\u003c\/p\u003e \u003cp\u003eDepreciation 113\u003c\/p\u003e \u003cp\u003eAccruals 114\u003c\/p\u003e \u003cp\u003eResearch and Development Costs 118\u003c\/p\u003e \u003cp\u003eThe CFO Perspective 120\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 The Jump from Company Earnings to Stock Prices 125\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFlaws in Traditional Valuation Measures 125\u003c\/p\u003e \u003cp\u003eAccounting versus Finance: A Case Study 128\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Epoch’s Investment Philosophy 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Starting Point: Generating Free Cash Flow 134\u003c\/p\u003e \u003cp\u003eChoosing to Reinvest 135\u003c\/p\u003e \u003cp\u003eCapital Investment: Returns and Capital Costs 136\u003c\/p\u003e \u003cp\u003eOnce More: Cash Flow-Based Measures Are Superior 139\u003c\/p\u003e \u003cp\u003eTrends in Capital Allocation 142\u003c\/p\u003e \u003cp\u003eDividends 143\u003c\/p\u003e \u003cp\u003eShare Repurchases 145\u003c\/p\u003e \u003cp\u003eDebt Buydowns 150\u003c\/p\u003e \u003cp\u003eCapital Allocation: What’s the Right Mix? 151\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart III Technology\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 High-Speed Technology 159\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInformation Technology: Three Relentless Forces 162\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Technology in Investing 171\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInformation at Work 172\u003c\/p\u003e \u003cp\u003eOrder from Chaos: Applying Scientific Frameworks 172\u003c\/p\u003e \u003cp\u003eComputers to the Rescue 174\u003c\/p\u003e \u003cp\u003eA Virtuous Circle 176\u003c\/p\u003e \u003cp\u003eExpansion of Index Funds 177\u003c\/p\u003e \u003cp\u003eBetting Against the CAPM 177\u003c\/p\u003e \u003cp\u003eConcurrent Developments 179\u003c\/p\u003e \u003cp\u003eThe Spread of Quant 181\u003c\/p\u003e \u003cp\u003eComputing and Data, Neck and Neck 181\u003c\/p\u003e \u003cp\u003eBig Data—Beyond Bloomberg 183\u003c\/p\u003e \u003cp\u003eArtificial Intelligence 187\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 The Epoch Core Model 191\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFactors in the Epoch Core Model 192\u003c\/p\u003e \u003cp\u003eResults of the Epoch Core Model 196\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Racing with The Machine 201\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInvesting Is Too Important for Robots Alone 201\u003c\/p\u003e \u003cp\u003eRacing with the Machine 202\u003c\/p\u003e \u003cp\u003eSeeking High Return on Capital 204\u003c\/p\u003e \u003cp\u003eA More Practical Study 206\u003c\/p\u003e \u003cp\u003eIs Persistence Contradictory? 208\u003c\/p\u003e \u003cp\u003eAn ROIC Strategy 211\u003c\/p\u003e \u003cp\u003eThe Value of Judgment 214\u003c\/p\u003e \u003cp\u003eEpilogue 219\u003c\/p\u003e \u003cp\u003eAppendix A: Selected Articles and White Papers of Epoch Investment Partners 223\u003c\/p\u003e \u003cp\u003eAppendix B: Financial Asset Valuation 273\u003c\/p\u003e \u003cp\u003eAppendix C: Feathered Feast: A Case 285\u003c\/p\u003e \u003cp\u003eAcknowledgements 295\u003c\/p\u003e \u003cp\u003eAbout the Authors 297\u003c\/p\u003e \u003cp\u003eIndex 299\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eWILLIAM W. PRIEST\u003c\/b\u003e is Chief Executive Officer, Co-Chief Investment Officer, and a co-founder of Epoch Investment Partners, and a long-time advocate of free cash flow investing. His other books include \u003ci\u003eFree Cash Flow and Shareholder Yield\u003c\/i\u003e and \u003ci\u003eThe Financial Reality of Pension Funding Under ERISA.\u003c\/i\u003e \u003c\/p\u003e\u003cp\u003e\u003cb\u003eSTEVEN D. BLEIBERG\u003c\/b\u003e is a Managing Director and Global Portfolio Manager at Epoch Investment Partners. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eMICHAEL A. WELHOELTER\u003c\/b\u003e is a Managing Director, Portfolio Manager, and Head of Quantitative Research and Risk Management at Epoch Investment Partners.   \u003c\/p\u003e\u003cp\u003e\u003ci\u003eWinning at Active Management\u003c\/i\u003e conducts an in-depth examination of crucial issues facing the investment management industry, and will be a valuable resource for asset managers, institutional consultants, managers of pension and endowment funds, and advisers to individual investors. Bill Priest, Steve Bleiberg, and Mike Welhoelter, all experienced investment professionals, consider the challenges of managing portfolios through complex markets, as well as managing the cultural and technological complexities of the investment business. \u003c\/p\u003e\u003cp\u003eThe book’s initial section highlights the importance of culture within an investment firm – the characteristics of strong cultures, the imperatives of communication and support, and suggestions for leading firms through times of both adversity and prosperity.  \u003c\/p\u003e\u003cp\u003eIt continues with a thorough discussion of active portfolio management for equities. The ongoing debate over active versus passive management is reviewed in detail, drawing on both financial theory and realworld investing results. The book also contrasts traditional methods of portfolio management, based on accounting metrics and price-earnings ratios, with Epoch Investment Partners’ philosophy of investing on free cash flow and appropriate capital allocation. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eWinning at Active Management\u003c\/i\u003e closes with an inquiry into the crucial and growing role of technology in investing. The authors assert that the most effective portfolio strategies result from neither pure fundamental nor quantitative methods, but instead from thoughtful combinations of analyst and portfolio manager experience and skill with the speed and breadth of quantitative analysis. The authors illustrate the point with an example of an innovative Epoch equity strategy based on economic logic and judgment, but enabled by information technology. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eWinning at Active Management\u003c\/i\u003e also offers important insights into selecting active managers – the market cycle factors that have held back many managers’ performance in recent years, and the difficulty of identifying those firms that truly possess investment skill. Drawing on behavioral economic theory and empirical research, the book makes a convincing case that many active investment managers can and do generate returns superior to those of the broad market.  \u003c\/p\u003e\u003cp\u003ePraise for \u003ci\u003eWinning at Active Management\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e“In this highly accessible book, Bill Priest and his co-authors do a masterful job demonstrating the critical components of success for any investment manager: maintaining the right culture, developing a rigorous and effective investment philosophy, and embracing technologies that can capture greater value from fundamental insights.  Investors interested in improving their results will benefit from the five decades of wisdom and experience that are so engagingly captured here, and come away with profound insights about the active\/passive debate, how both culture and technology are underappreciated drivers of success, and the future of investing.  Bill’s highly successful career as an investor, innovator and industry leader give this work tremendous depth and perspective — I strongly recommend it.”\u003c\/p\u003e \u003cp\u003e\u003cb\u003e- Blake Grossman\u003c\/b\u003e, Managing Partner, CHJ Capital Management, Chairman of the Board of Directors, Financial Engines, Former Chief Executive Officer, Barclays Global Investors\u003c\/p\u003e \u003cp\u003e“While having the right corporate culture is essential for successful asset management, culture is surprisingly under-researched in finance. \u003ci\u003eWinning at Active Management\u003c\/i\u003e is a bold step forward in filling this gap.”\u003c\/p\u003e \u003cp\u003e\u003cb\u003e- Campbell R. Harvey\u003c\/b\u003e, Ph.D., Professor of Finance, Duke University, Co-author, \u003ci\u003eCorporate Culture: Evidence from the Field\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e “Bill Priest and his co-authors expertly capture what's at stake in the debate about active versus passive investing. In \u003ci\u003eWinning at Active Management\u003c\/i\u003e, they identify the styles and traits in active management that outperform over the long term.”\u003c\/p\u003e \u003cp\u003e\u003cb\u003e- Fleming Meeks\u003c\/b\u003e, Executive Editor, \u003ci\u003eBarron's\u003c\/i\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990495969509,"sku":"NP9781119051824","price":29.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119051824.jpg?v=1761788059","url":"https:\/\/k12savings.com\/es\/products\/winning-at-active-management-isbn-9781119051824","provider":"K12savings","version":"1.0","type":"link"}