Risk-Based Investment Management in Practice

1. Front Matter

   Pages i-xii

   PDF

2. Introduction

   1. Front Matter

      Pages 1-1

      PDF

   2. Introduction

      • Frances Cowell

      Pages 3-23

   3. Risk-Based Portfolio Selection – An Overview

      • Frances Cowell

      Pages 24-31

   4. Investment Management Theory

      • Frances Cowell

      Pages 32-44

3. Risk Management

   1. Front Matter

      Pages 45-45

      PDF

   2. Risk Management

      • Frances Cowell

      Pages 47-64

   3. Risk Modelling

      • Frances Cowell

      Pages 65-84

   4. Risk Measurement

      • Frances Cowell

      Pages 85-112

   5. Derivatives Risk Management

      • Frances Cowell

      Pages 113-124

4. Risk-Based Portfolio Selection

   1. Front Matter

      Pages 125-125

      PDF

   2. Asset Allocation

      • Frances Cowell

      Pages 127-158

   3. Indexed Equities Portfolios

      • Frances Cowell

      Pages 159-184

   4. Equities Portfolios

      • Frances Cowell

      Pages 185-219

   5. Optimization for Equity Stock Selection

      • Frances Cowell

      Pages 220-238

   6. Fixed Interest Portfolios

      • Frances Cowell

      Pages 239-260

   7. Credit Portfolios

      • Frances Cowell

      Pages 261-279

   8. Property Portfolios

      • Frances Cowell

      Pages 280-293

   9. Structured Products

      • Frances Cowell

      Pages 294-312

   10. Hedge Funds and Funds of Hedge Funds

       • Frances Cowell

       Pages 313-332

A practitioner's account of how investment risk affects the decisions of professional investment managers. Jargon-free, with a broad coverage of investment types and asset classes, the non-investment professional will find this book readable and accessible.

• asset allocation
• derivatives
• Futures
• Investment
• Options
• Portfolio
• Portfolio Selection
• Risk Management
• Risk Measurement
• Risk modelling
• Swaps
• insurance
• investments and securities
• household finance

FRANCES COWELL is Director of Risk Consulting for R-Squared Risk Management, where she advises on the practical application and interpretation of portfolio risk profiles and risk management in extreme and stressed market conditions. She has worked in the investment industry for over 30 years, initially as research analyst and investment manager for public and private pension funds. She managed domestic and international equities portfolios and multi-asset class portfolios, oversaw the management of protected and guaranteed minimum return funds and managed relative value portfolios that exploited mispricing in derivatives markets. During this time she worked with leading practitioners and academics to apply established investment theory and defensive use of derivatives to practical challenges in order to deliver defined outcomes for pension and retail funds across asset classes. She was an early adherent of investment management from a risk perspective, which served her well throughout the market bubbles and shocks of the late 1980s, 1990s and of course 2007-08. For the past 15 years, she has specialized in investment risk management for multi-asset class portfolios, specialist portfolios and for in-house managed hedge funds. As Chief Risk Officer for two London investment management firms, she managed a team of professional risk managers and attended to the regulatory and governance demands of multiple investment funds.

She studied at the University of New South Walesand the Australian Graduate School of Management, earning a Bachelor of Arts and an MBA. She is an occasional contributor to industry publications on the subject of risk management for derivatives and hedge funds and is a founding director of the London Quant Group.

Policies and ethics