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PERFIN Session3 Slides
PERFIN Session3 Slides
PERFIN Session3 Slides
Performance
Estrada
IESE
Business
School
Barcelona
Spain
Absolute Relative
1
Performance
Javier
Estrada
IESE
Relative Absolute
Business
School
Barcelona
Spain
Management
Javier
A critical distinction
Estrada
IESE
Business
School
Barcelona
Spain Active Passive
Management Management
2
Products
Javier
Estrada
IESE
Business
Mutual funds The ‘traditional’ choice
School
Barcelona
Spain The beginning of
Index funds
passive investing
IESE
Business
School
3
Active vs. Passive Management
Javier
Estrada
IESE
Business
School One of your most critical investment decisions
Barcelona
Spain
?
MBA
PERFIN
Fall/2023
IESE
Business
To make this decision focus on …
School
Barcelona
Spain
1. Goal
2. Success
3. Cost
4
Active Management – Challenges
Javier
Estrada
IESE
The two challenges of ‘going active’
Business
School
Barcelona
Spain
Ignoring costs, active management is a 0-sum game
(Considering costs, it is a negative-sum game)
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
5
Appendix
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
Back
6
Passive Management
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
Passive Management
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
Back
7
ETFs
Javier
Estrada
IESE
Business $10.2tn
School
9,838
Barcelona
Spain
ETFs
Javier
Estrada
IESE
Business
School
Barcelona
Spain
≈ $3tn
ETFs: $8tn
MBA
PERFIN
Fall/2023
8
ETFs
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
Back
9
Absolute Return Funds
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
Back
10
Absolute Return Funds
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
11
Absolute Return Funds
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
12
Hedge Funds
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
Hedge Funds
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
13
Hedge Funds
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
Hedge Funds
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
14
Hedge Funds
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
Back
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
15
Active Mgmt – Underperformance
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
16
Active Mgmt – Underperformance
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
17
Active Mgmt – Underperformance
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
Remember underperformance!
Back
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Fall/2023
18
Active Mgmt – Persistence
Javier
Estrada
IESE
Business
School
Barcelona
Spain
MBA
PERFIN
Remember (lack of) persistence!
Fall/2023
Back
19