The Politics of Public Fund Investing How to Modify Wall Street to Fit Main Street

by Finkelstein, Ben; Landerman, Felicia

• ISBN13: 9780743267298
• ISBN10: 074326729X
• Format: Hardcover
• Copyright: 2006-03-14
• Publisher: Atria Books

Summary

Until now, there has never been a book to help public fund managers direct fixed-income portfolios while simultaneously balancing politics, or the need to preserve principal, with economics, or the need to optimize income.The Politics of Public Fund Investingapproaches public fund management from the lay perspective, providing much-needed guidance to modify Wall Street strategies to serve the needs of Main Street.If you manage a public fund, if you are an elected official, or if you oversee a portfolio for a foundation or an endowment, you know the traditional money management strategy used every day on Wall Street doesn't necessarily apply to your situation. For you, investing isn't simply about economics. Wall Street strategies do not take into account election cycles, political risk factors, or the unique performance assessments public funds must undergo. When Wall Street builds a portfolio, it doesn't need to consider the opinions and desires of a wide variety of constituents, and the management of the portfolio's performance doesn't carry the same level of career risk.This groundbreaking book is the first resource ever available to the stewards of public fund investing entrusted with the responsibility to make financial decisions in this unique environment.The Politics of Public Fund Investingshows readers how to evaluate and measure their funds' performance through specific techniques, standards, and procedures. It begins by addressing the key differences between Wall Street and Main Street, explaining which methods of Wall Street are unsuited to public fund management and why. The book provides a framework for moving from a static investment policy to a dynamic investment plan, making the important distinction between what is "legal" in terms of policy and what is "suitable" in terms of the objectives of the stakeholders. The book goes on to propose exceptional and beneficial insights into appraising a fund's performance along with providing a four-step process to build a politically correct portfolio. Finally, it shows how to be safe and optimize income within the constraints of acceptable risk.Based on years of experience and invaluable research,The Politics of Public Fund Investingis an innovative, compelling, and much-needed guide to navigating the complex territory where the political environment meets public investing.

Author Biography

Benjamin Finkelstein is senior managing director of public funds for Stanford Group Company.

Table of Contents

Acknowledgments	ix
Foreword	xiii
Preface	xv
PART ONE MAIN STREET PHILOSOPHY
Chapter 1 WALL STREET VERSUS MAIN STREET	3	(11)
Chapter 2 INVESTMENT POLICY AND POLITICS	14	(10)
Chapter 3 RELEVANT PERFORMANCE MEASUREMENT	24	(11)
Chapter 4 FOUR STEPS TO CREATING A POLITICALLY CORRECT PORTFOLIO	35	(15)
Chapter 5 OPTIMIZING INCOME AND MINIMIZING RISK	50	(27)
PART TWO TECHNICAL TOOL KIT
Chapter 6 OPPORTUNITY COST	77	(13)
Chapter 7 PROFITING FROM LOSSES	90	(17)
Chapter 8 UNDERSTANDING AND APPLYING DURATION	107	(14)
Chapter 9 CALLABLE SECURITIES	121	(23)
Chapter 10 PUBLIC FUND ANALYTICS	144	(19)
Glossary	163	(6)
Notes	169	(4)
Index	173