Eye-popping yields mask paltry returns from these funds
“If you wait long enough, in the parlance of Wall Street, you get your face ripped off."
“If you wait long enough, in the parlance of Wall Street, you get your face ripped off."
Andrew Lo proposed a $30bn cancer “megafund” a decade ago to combine drug testing projects to diversify risk.
The decision to license or sell a drug depends on profitability, strategic mission, and whether a company “believes” in the science of a drug.
"If you combine multiple diseases into a single financial portfolio, all of a sudden the risk-reward trade off becomes more attractive."
"We need the private sector to put in billions to match the hundreds of millions that the government has dedicated to this effort."
"We all want to have impact. But very few economists are able to do anything that would actually affect patient lives."
"There is evidence of social contagion of investment behavior in financial markets that does not derive from rational information processing."
"We point out that this is a never-ending journey, that we're constantly looking to improve the way we think about investing."
A growing number of brokers are offering clients products that combine the benefits of passive investing with greater customization.
Andrew W. Lo and co-author have written an intellectual history of modern finance theory which shows how far from a science investing remains.