{"product_id":"competitive-advantage-in-investing-isbn-9781119619840","title":"Competitive Advantage in Investing","description":"\u003cp\u003e\u003cb\u003eLinks theory and practice for investment professionals and portfolio managers, demonstrating why some portfolios consistently perform better than others\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInvesting well, like any other business, depends on competitive advantage. Some portfolios reliably generate greater returns than others because they simply are better positioned to benefit from strengths and avoid weaknesses. Building and using competitive advantage becomes central to the daily work of the best mutual funds, hedge funds, banks, insurers and virtually every other type of portfolio. But competitive advantage commonly is overlooked in most written work for investment professionals. The literature often varies between abstract formal treatments and pragmatic workbooks with little in between. \u003ci\u003eCompetitive Advantage in Investing\u003c\/i\u003e fills the gap by integrating modern portfolio theory with actual practice in one comprehensive volume.\u003c\/p\u003e \u003cp\u003eThis innovative book guides investment professionals on building and sustaining competitive advantage and helps policymakers and researchers apply theory in a wide range of practical settings. Author Steven Abrahams—Senior Managing Director at Amherst Pierpont Securities and former Adjunct Professor of Finance and Economics at Columbia Business School—draws from his experience in both academic theory and real-life strategic investing to bridge the two worlds. This valuable resource:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eConnects the formal literature on investing to the actual work of most institutional portfolio managers\u003c\/li\u003e \u003cli\u003eExamines core strengths and weaknesses that drive portfolio behavior at mutual and hedge funds, banks and insurers, at other institutions and for individuals\u003c\/li\u003e \u003cli\u003eDemonstrates how linking portfolio theory and practice can increase competitive advantage\u003c\/li\u003e \u003cli\u003eOffers a robust description of investing, markets, and asset value\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eCompetitive Advantage in Investing: Building Winning Professional Portfolios \u003c\/i\u003eis a must-have book for any investment professional, policymaker, or researcher.\u003c\/p\u003e \u003cp\u003ePreface ix\u003c\/p\u003e \u003cp\u003eAcknowledgments xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I Theory \u003c\/b\u003e\u003cb\u003e1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1 Welcome, Harry Markowitz 3\u003c\/p\u003e \u003cp\u003e2 A Sharpe Line 17\u003c\/p\u003e \u003cp\u003e3 The Counsel of Critics 27\u003c\/p\u003e \u003cp\u003e4 Toward a New Capital Asset Pricing Model 35\u003c\/p\u003e \u003cp\u003e5 The Local Capital Asset Pricing Model 41\u003c\/p\u003e \u003cp\u003e6 Creating Competitive Advantage 53\u003c\/p\u003e \u003cp\u003e7 Building a Portfolio on Competitive Advantage 65\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II Practice \u003c\/b\u003e\u003cb\u003e73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8 Investing for Total Return: Mutual Funds 75\u003c\/p\u003e \u003cp\u003e9 Investing for Total Return: Hedge Funds 99\u003c\/p\u003e \u003cp\u003e10 Investing for Banks, Thrifts, and Credit Unions 121\u003c\/p\u003e \u003cp\u003e11 Investing for Property\/Casualty and Life Insurers 159\u003c\/p\u003e \u003cp\u003e12 Investing for Broker\/Dealers 187\u003c\/p\u003e \u003cp\u003e13 Investing for Real Estate Investment Trusts 203\u003c\/p\u003e \u003cp\u003e14 Investing for Sovereign Wealth Funds 213\u003c\/p\u003e \u003cp\u003e15 Investing for Individuals 229\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart III Markets \u003c\/b\u003e\u003cb\u003e243\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e16 Turning the Tables: Investor Impact on Asset Values 245\u003c\/p\u003e \u003cp\u003eReferences 255\u003c\/p\u003e \u003cp\u003eAbout the Author 265\u003c\/p\u003e \u003cp\u003eIndex 267\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSteven Abrahams\u003c\/b\u003e is Senior Managing Director and Head of Investment Strategy at Amherst Pierpont Securities and former Adjunct Professor of Finance and Economics at Columbia Business School. He has spent 28 years as an investment strategist advising banks, insurers, mutual and hedge funds, and other institutional portfolios in the United States and abroad.\u003c\/p\u003e \u003cp\u003eThere are books on investment theory, and there are guides for practitioners. Somehow, the two rarely overlap, although investors have much to learn from both. The theoretical literature often focuses on the balance of risk, return, and diversification, as though there were nothing else influencing and constraining investor behavior. The practical literature then focuses on other things—the investment conventions of different markets, taxes and accounting, financing, and beyond—usually without acknowledging the important and valuable theoretical foundation that underlies investment success.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eCompetitive Advantage in Investing \u003c\/i\u003ebridges the theoretical and practical strands of the investment literature, offering a treatment of risk, return, and diversification, as well as a new emphasis on the idea that portfolio performance depends on investors’ own strengths and weaknesses. Investors aware of their strengths and using them to find promising opportunities can build portfolios that are better poised to generate excess returns. With this book, investment professionals and researchers alike will gain a more complete understanding of what makes some portfolios perform better than others.\u003c\/p\u003e \u003cp\u003eAuthor Steven Abrahams builds on the classic Capital Asset Pricing Model to develop a new and more robust investment framework—the Local Capital Asset Pricing Model. The Local CAPM incorporates competitive advantage and disadvantage, grounded in particular investment factors, into a model for valuing assets. Infusing real-world considerations into investment theory is a novel idea, and one that promises to explain the complex landscape of institutional investing more accurately than ever before. Theoreticians and professionals alike will benefit.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eA guide for building and sustaining portfolios that generate excess returns\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBridging the theoretical and the practical, \u003ci\u003eCompetitive Advantage in Investing\u003c\/i\u003e presents new insights on how investors use their unique strengths and weaknesses to identify investment opportunities that are likely unavailable to their competitors. Investing is a competitive business, and, like any other business, creating competitive advantage is key to success. When the theory of competitive advantage is integrated with classic models of risk, return, and diversification, the result is a powerful strategy for understanding market behavior and generating financial performance.\u003c\/p\u003e \u003cp\u003eThis book examines key factors that determine investors’ areas of advantage, including\u003c\/p\u003e \u003cul\u003e \u003cli\u003eAbility to expand into new areas or respond to investment opportunity\u003c\/li\u003e \u003cli\u003eOpportunities to leverage, deleverage, or tailor the risk and return in existing assets\u003c\/li\u003e \u003cli\u003eAccess to information, competitive accounting scenarios, and tax advantages\u003c\/li\u003e \u003cli\u003eRegulatory and political advantages \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIn practice, the highest performing portfolios specialize around their strengths. Until now, formal investment theory has ignored this market reality. This book is important for both academic and professional readers, showing why some portfolios consistently outperform others.\u003c\/p\u003e \u003cp\u003eSubscribe to our free Finance and Investing eNewsletter at wiley.com\/enewsletters\u003cbr\u003e\u003cbr\u003eVisit wileyfinance.com\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988958167269,"sku":"NP9781119619840","price":49.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119619840.jpg?v=1761782208","url":"https:\/\/k12savings.com\/products\/competitive-advantage-in-investing-isbn-9781119619840","provider":"K12savings","version":"1.0","type":"link"}