14:00–16:30

The Research Foundation Workshop for the Practitioner

Capital Suites 7/8/9 │ Level 3 · ·

The Research Foundation Workshop for the Practitioner draws from the work supported by the CFA Institute Research Foundation to help participants enhance their practical investment knowledge, understand and apply new research, and contribute to effective client service. This is an optional, free workshop for delegates of the 72nd CFA Institute Annual Conference.

Ted Aronson, CFA, Workshop Moderator
Founder and Managing Principal
AJO

Popularity: A Bridge between Classical and Behavioral Finance
Roger G. Ibbotson
Professor in the Practice Emeritus of Finance, Yale School of Management
Chairman, Zebra Capital Management, LLC

  • Defining “popularity,” or how much a security is liked, apart from the fundamentals: The more investors like it, the higher the price but the lower the expected return.
  • A new approach to asset pricing—the popularity asset pricing model (PAPM)—builds on the CAPM but includes additional investor preferences beyond risk aversion, such as liquidity and brand preference. These specific preferences are aggregated into security prices and are not arbitraged away.
  • Preferences can be rational (classical) or emotional (behavioral), so the PAPM provides a bridge between classical and behavioral finance.

The Future of Investment Management
Ronald N. Kahn
Managing Director and Global Head of Systematic Equity Research
BlackRock

  • Investment management is in flux, arguably more than it has been in a long time.
  • This changing landscape includes seven key trends that are affecting the future of investment management.
  • We are evolving toward a world with three distinct types of products, each with their own challenges and requirements for success.