Trust and constraints

Myron Scholes returns for a conversation on the total portfolio approach and its potential evolution beyond traditional strategic asset allocation. Along with Janus Henderson Co-Heads of Global Asset Allocation Phil and Allan Maymin, he explains why drawdown budgets, liquidity, and dynamic risk management should sit at the center of long-horizon portfolio construction. The three also explore how CIOs and boards can prepare for shocks, improve compound returns, and use the total portfolio as a more flexible risk-management framework.

In this special episode, Dr. Myron Scholes explores the future of asset management with Janus Henderson CEO Ali Dibadj.

Trust is a key factor in investment management and the cost of monitoring and constraining the investment managers is high. In this episode, Myron talks about the balance between trust, monitoring and constraining the investment managers and how it affects the investment process and risk taken. He also delves into the importance of education and truth-telling in building and maintaining trust.

In this special episode, coinciding with the publication in the Journal of Investment Management of a paper by Ashwin Alankar and Myron Scholes titled “Carbon Emissions and Asset Management,” Myron, in conversation with Phil Maymin, unveils a new approach to environmentally friendly portfolio construction, and also offers general insights about the role of innovation in finance. 

Myron, in conversation with Phil Maymin, compares and contrasts the market efficiency of stocks and options.

Myron tackles some of the toughest conundrums in risk management: when to de-risk, when to re-risk, and how to think about risk in a real, multi-period world. Myron, in conversation with Phil Maymin, critiques the standard 60/40 portfolio allocation, highlights the illusion of fixed correlations for risk management, and points out subtle but common mistakes people make in estimating risks, and offers an innovative perspective on how to move forward.

Myron explores how data mining, clustering and reverse engineering of models could create pitfalls for investment managers. Myron, in conversation with Phil Maymin, highlights the importance of building trust in the investment management industry by presenting valid, trustworthy information and cautions investors to not rely on past performance alone.

In the first episode of the series, Myron explores time diversification and its importance in effecting investment outcomes. Myron, in conversation with Phil Maymin, explains why targeting a specific level of risk over time is equally, if not more important, than cross-sectional diversification.