The management of equity investments : capital markets, equity research, investment decisions and risk management with case studies

The Management of Investments is based on an extensive research project done by the author in 2003 and 2004, in the United States, England, Germany, France, Italy and Switzerland. The author outlines the rules behind the able management of investments by private individuals, banks, and institutional investors. These rules are examined within the perspective of each entity's goals and challenges. Based on research results and on his own experience, the author demonstrates that shareholder value is usually being paid lip service. As far as investment results are concerned, there are serious risks associated to leveraging, near-sighted management, obsolescence of skills and dubious deals. But there are also investment rules which, when observed, help in avoiding the slippery path which ends with investors losing their capital. To help in explaining these rules, the book outlines the way capital markets work, equity research is done, and risks associated to biases. It also pays attention to forces propelling economic growth or downturn. Growth is usually dictated by the customer, but the customer is influenced by market psychology, liquidity, volatility, and prospects of the product or financial instrument he contemplates to buy. Case studies on instruments in the book examine equities, interest rates and exchange rates. The text also analyzes the role played by hedge funds and their strategies, as well as risks associated to alternative investments. * Explains the benefits provided by sound investment management * Suggests ways and means to gain investor confidence * Includes lessons which can be learned from the market bubble of the late 1990s, the long 2000-2003 market depression and the starting recovery in 2004 Content: Foreword , Page ix Preface , Pages xi-xiv Abbreviations , Pages xv-xvii 1 - Golden rules of investing , Pages 3-29 2 - The area where professional asset managers and private investors meet , Pages 30-55 3 - Capital markets and the securities industry , Pages 59-78 4 - The trading of equities , Pages 79-106 5 - Regulation and operation of the exchanges , Pages 107-127 6 - Technical and fundamental analysis , Pages 131-155 7 - Quantitative criteria for equity performance , Pages 156-179 8 - Transparency in financial statements and reputational risk , Pages 180-201 9 - A private investor's self-protection , Pages 202-227 10 - Investors' responsibility in risk management , Pages 231-254 11 - Independent equity research and management risk , Pages 255-273 12 - Volatility, liquidity, leverage, and their impact on investments , Pages 274-295 13 - Methods for judging quoted equities , Pages 296-317 14 - Case studies on equity values , Pages 321-340 15 - Parmalat: A case study on leveraging corporate assets , Pages 341-370 Acknowledgements , Pages 371-394 Index , Pages 395-400 "The Management of Equity Investments is based on an extensive research project undertaken by the author in 2003 and 2004, in the United States, England, Germany, France, Italy and Switzerland. The author outlines the rules behind the able management of investments by professionals working for banks and institutional investors as well as by knowledgeable private individuals. These rules are examined within the perspective of each entity's goals and challenges." "Based on research results and on his own experience, the author demonstrates that shareholder value is usually being paid lip service. As far as investment results are concerned, there are serious risks associated with leveraging, near-sighted management, obsolescence of skills and dubious deals."--BOOK JACKET

Provides a fundamental understanding of risks associated with investments.