FE Practitioners Seminar: Victor Haghani

March 26, 2018 | 6:00pm - 7:30pm

FE Practitioners Seminar: Victor Haghani

Schapiro CEPSR, 530 W. 120 St., New York, NY 10027 Davis Auditorium
Title: Betting on a Biased Coin and Other Problems in Investment Sizing Abstract: Effective investing involves two tasks: selection and sizing. Turn on the TV and almost 100% of the content you’ll see will involve trying to figure out what to invest in. Get the sizing of your investments wrong and you could get wiped out, even if the assets in which you invest have attractive expected returns. In this talk we’ll explore the investment sizing decision under uncertainty through the prism of betting on the flip of a coin. We’ll develop a few basic heuristics which we can use to answer a variety of fascinating and practical investment problems, from an explanation of whether “a penny saved is a penny earned” to the relevance of the Kelly Criterion and the more general Merton Rule to individual investors to a better understanding of St Petersburg type problems. Bios: Victor Haghani has spent nearly 30 years actively involved in markets and financial innovation. He started his career in 1984 in bond portfolio analysis research at Salomon Brothers, and later became a managing director in the bond arbitrage group run by John Meriwether. In 1993 Victor became a founding partner of Long-Term Capital Management. His participation in the failure of LTCM was a life-changing experience that led him to question and revise much of the way he thought about the economy, markets and investing. Through a study of the academic literature on investing as a visiting lecturer and researcher at the London School of Economics, and discussions with friends, colleagues, and investors of all backgrounds, Victor concluded that savers can and should do much better. He is the CEO of Elm Partners, which he founded in 2011 to help investors manage their savings in an efficient and disciplined manner, and to capture the long term returns they ought to earn.


500 W. 120th St., Mudd 315, New York, NY 10027    212-854-2942                 
©2014 Columbia University