Safe Ride

Micro-post.  I’m heading to Chicago for a major hedge fund conference today and because of airline merger monopoly on hub-to-hub routes, I’m flying out of LaGuardia instead of nearby Newark Airport.  As the car arrived to take me to the airport, my wife said “Have a safe ride to the airport” and I immediately smiled.  “That’s exactly right!” I let out.  “You got it!  Going from New Jersey to Queens by car is much riskier than flying from New York to Chicago.  Instead of wishing me a ‘safe flight,’ you wished me a ‘safe car ride’.  Thank You.”  Has my wife been reading my blog?

Making Sense of Risk Reports

We’re doing more and more business with firms that are less and less familiar with absolute risk measures.  Many institutional investors are familiar with Relative risk measures, like Tracking Error and Beta, but they are much less familiar with things like VaR, Stress Tests, Correlations, and all the other analytics that are standard fare for risk managers.  As Investor Analytics works with more of these institutional investors, its become clear to me that they could use a hand in interpreting their risk reports.  Most of our competitors (which my marketing department has told me it’s never a good idea to mention by name — see, I can learn something) don’t offer interpretation or consulting services.  They just produce the reports and send them out.  But I think it’s much more valuable to have a guide on how to make sense of them.

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