Rational Investing

Rational Investing: The Subtleties of Asset Management introduces an analytical framework for navigating modern asset management and addressing the tension between luck and skill in investment outcomes.

The volume centers on three fundamental performance drivers: balancing exposure to risk factors, diversifying bad luck, and taking advantage of relative mispricings across financial markets. Model multi-asset-class portfolios demonstrate how to put these principles into practice.

Designed for readers with a basic knowledge of statistics as well as seasoned industry professionals, the text explains the mechanics of sustainable investing across different portfolio scales.