Investment Management and Mismanagement: History, Findings, and Analysis (Innovations in Financial Markets and Institutions Book 17)

__INVESTMENT MANAGEMENT AND MISMANAGEMENT: History, Findings, and Analysis__ is designed for academic researchers, legal professionals, and practitioners who are interested in the various issues surrounding both professional and individual investment management. These issues include performance, anomalies, market timing, suitability, and churning, among others. The construct of mismanagement is presented in light of the impact of various costs on investment returns. "The book starts with a concise, yet informative, history of the primary entities of the investment industry. The first part of the book interestingly points out that many of the industry’s challenges are not particularly new, but have been played out again and again throughout the existence of our financial markets. Against that backdrop, the author then proceeds to lay out the myriad of challenges inherent in today’s environment. The book covers important topics, ranging from mutual funds’ inability to consistently provide value, to the performance of individual investors. As to the problems of suitability and churning, the material clearly leads the reader to understand that these issues are rooted in the traditional method of compensation to brokers. The conflict of interest inherent in this method cannot be resolved until the manner of compensation is revised. This is a good review for the experienced investment professional, as well as an excellent overview for the novice." Kathleen A. Wayner President and CEO Darren C. Kavesh Chief Investment Officer Bowling Portfolio Management 513-871-7776

Investment Management and Mismanagement: History, Findings, and Analysis will present the reader with: (1) a brief overview of portfolio management and its historical evolution , (2) the findings of a substantial amount of academic research into the performance of portfolio managers, (3) the various issues associated with both institutional and individual portfolio mismanagement, and (4) a treatment of the areas of suitability and churning The articles referenced are primarily works from academic journals, including: The Journal of Finance, Journal of Financial Economics, and others, as well as from practitioner-oriented venues, such as Financial Analyst Journal and various law journals. This work should be of value to academic researchers as a convenient source of summarized studies in these areas, while practitioners will find value its content as an efficient reference for determining the benefits of asset management as well as potential pitfalls.

Introduction....Pages 1-2 The Investment Process....Pages 3-5 The Historical Backdrop for Investment Management....Pages 7-28 Market Eefficiency and Anomalies....Pages 29-38 The Efficacy of Analysts’ Recommendations....Pages 39-50 Studies of Institutional Portfolio Performance....Pages 51-71 Studies of Individual Portfolio Performance....Pages 73-84 Investiment Costs and the Mismanagement Issue....Pages 85-97 Suitability....Pages 99-109 Churning....Pages 111-143 Conclusion....Pages 145-146 This book presents a critical analysis of four critical areas of investment management. Coverage includes an overview of portfolio management and its historical evolution; review and analysis of a range of academic research into the performance of portfolio managers; issues associated with both institutional and individual portfolio mismanagement; and a treatment of the important topics of suitability and churning. The contents are gathered from top academic, investment and law journals. Presents the reader with an overview of portfolio management and its historical evolution, and the findings of a substantial amount of academic research into the performance of portfolio managers. This work is of interest to academic researchers and practitioners