Invest Like A Fox-- Not Like A Hedgehog
How You Can Earn Higher ReturnsBook - 2007
Proven techniques for leading-instead of following-fast-changingmarkets
Investors, no matter what strategy they are using, can be placedinto two categories. Single-minded, inflexible hedgehogs lock intoone strategy and stick with it through thick and thin. Dynamic,adaptable foxes, on the other hand, are alert for changes, learnfrom experience, embrace new ideas, and make the most of new trendsand technologies. The key lies in being flexible and realizing thatmarkets are dynamic. Invest Like a Fox . . . Not Like aHedgehog shows investors how being a hedgehog can reducereturns while increasing the risk of a portfolio, and how acquiringthe cunning and adaptability of the fox will improve returns whilereducing risk. It reveals the shortcomings of popular buthedgehog-like investment strategies and shows how a fox-likeinvestor adjusts to new market realities. Readers learn how to usethe renowned Bayesian Theory of Probability and other guidepostsfrom outside the world of finance to adjust their strategies andreact to new information.
As chairman of the Board of Trustees of the Fairfax County [Virginia] Employees' Retirement System/editor of Retirement Watch, Carlson emphasizes the need for managers of institutional investment portfolios to adopt a foxier strategy than the traditional one regarding risk allocation and fund diversification. Drawing on the Capital Asset Pricing Model and Rational Beliefs Theory, he explains how hedge funds can be balanced by other mutual funds. A few references are interspersed. Annotation ©2008 Book News, Inc., Portland, OR (booknews.com)