Post Modern Investment -- Contents -- Preface -- The Core Concepts in Managing Wealth -- Postmodern Investment -- How the Chapters Are Structured -- As You Begin -- Acknowledgments -- Chapter 1 Investment Ideas: Evolution or Revolution? -- In the Beginning -- Modern Portfolio Theory and the Efficient Market Hypothesis -- Capital Asset Pricing Model -- The Beginning of Information Transparency -- New Markets, New Products, and the Evolution of Modern Investment -- New Opportunities Create New Risks -- The Market Is Not Efficient for Everyone -- A Personal View of Modern Investment -- What Every Investor Should Know -- Myths and Misconceptions of Modern Investment -- Myth 1.1: Beta Is Dead -- Myth 1.2: Mean-Variance Optimization Models Correctly Balance Risk and Return -- Myth 1.3: Yield to Maturity Is Dead -- Myth 1.4: Investment Managers Matter -- Myth 1.5: Structured Products Are Dead -- Myth 1.6: Behavioral Finance Is the New Normal -- Myth 1.7: Derivative Markets Promote Increased Market Volatility -- Myth 1.8: Global Equity Markets and Bond Markets Act Differently Than U.S. Markets -- Myth 1.9: An Asset's Price Never Changes -- Chapter 2 Equity and Fixed Income: The Traditional Pair -- A Brief Review -- Equity and Fixed-Income Styles and Benchmarks -- Basic Sources of Risk and Return -- Performance: Fact and Fiction -- Return and Risk Characteristics -- The Myth of Average: Equity and Fixed-Income Return in Extreme Markets -- Annual Performance -- Performance in 2008 -- Special Issues: Making Sense Out of Traditional Stock and Bond Indices -- A Personal View of Equity and Fixed-Income Analysis -- Distributional Characteristics -- Untitled -- What Every Investor Should Know -- Myths and Misconceptions of Equity and Fixed Income -- Myth 2.1: Dividends Are Certain While Capital Gains Are Uncertain.

Myth 2.2: Investor Attitudes, Not Economic Information, Drive Stock and Bond Values -- Myth 2.3: Despite the Volatility of Stocks and Bonds in the Short Run, Time Diversification Reduces Their Volatilities in the Long Run -- Myth 2.4: Diversification across Equity Issues or Countries Is Sufficient to Reduce Risk -- Myth 2.5: Historical Returns from Security Indices Provide the Most Important Information as to Expected Future Performance -- Myth 2.6: Recent Manager Fund Performance Forecasts Future Return -- Myth 2.7: Given the Efficiency of the Stock and Bond Markets, Managers Provide No Useful Service -- Myth 2.8: Superior Managers or Investment Ideas Do Not Exist -- Myth 2.9: Stock and Bond Investment Means Investors Have No Derivatives Exposure -- Myth 2.10: Mutual Fund Investment Removes Investor Concerns as to Leverage -- Chapter 3 Hedge Funds: An Absolute Return Answer? -- What Are Hedge Funds? -- Investing in Hedge Funds -- Hedge Fund Styles and Benchmarks -- Relative Value -- Relative Value -- Opportunistic -- Basic Sources of Return and Risk -- Performance: Fact and Fiction -- Return and Risk Characteristics -- The Myth of Average: Hedge Fund Index Return in Extreme Markets -- Hedge Fund Annual Performance -- Performance in 2008 -- Making Sense Out of Hedge Fund Indices -- Making Sense Out of Alternative Approaches to Investing in Hedge Funds -- Individual Fund Investment -- Fund-of-Funds Investments -- Investable Hedge Fund Indices -- Hedge Fund Trackers -- Publicly Traded Exchange-Traded Funds or Mutual Funds -- A Personal View: Issues in Hedge Fund Investment -- Fund-of-Funds Investment -- Distributional Characteristics -- Governance -- Other Issues -- What Every Investor Should Know -- Myths and Misconceptions of Hedge Funds -- Myth 3.1: Hedge Funds Are Absolute Return Vehicles.

Myth 3.2: Hedge Funds Are Highly Levered Risky Investments -- Myth 3.3: Hedge Funds Are Black Box Trading Systems Unintelligible to Investors -- Myth 3.4: Hedge Fund Managers Fees Are Too High -- Myth 3.5: Hedge Funds and Hedge Fund Strategies Are So Unique That They Cannot Be Replicated -- Myth 3.6: Database Biases Make Hedge Fund Index Returns of Little Use -- Chapter 4 Managed Futures: A Zero-Sum Game? -- What Are Managed Futures? -- Investing in Managed Futures -- Managed Futures Styles and Benchmarks -- Basic Sources of Return and Risk -- Performance: Fact and Fiction -- Return and Risk Characteristics -- The Myth of Average: Commodity Trading Advisor Index Return in Extreme Markets -- Commodity Trading Advisor Annual Performance -- Performance in 2008 -- Making Sense of Commodity Trading Advisor Performance -- Individual Fund Performance -- Trading Time Frame -- Market Volatility and Commodity Trading Advisor Performance -- Commodity Trading Advisors as a Hedge for Equity Investors -- Making Sense Out of Alternative Approaches to Investing in Commodity Trading Advisors -- Commodity Trading Advisor Individual Fund and Pool Investment -- Commodity Trading Advisor Investable Indices -- Passive Trackers -- Mutual Fund and Exchange-Traded Fund Products -- A Personal View: Issues in Managed Futures Investment -- What Every Investor Should Know -- Myths and Misconceptions of Managed Futures -- Myth 4.1: Managed Futures Provide a Hedge for Equity Returns Especially in Down Markets -- Myth 4.2: Managed Futures Are Long Volatility -- Myth 4.3: Managed Futures Are Absolute Return Vehicles -- Myth 4.4: Managed Futures Are Riskier Than Stock Investments -- Myth 4.5: Managed Futures Require Their Own Unique Measures of Performance -- Myth 4.6: Managed Futures Strategies Cannot Be Replicated?.

Chapter 5 Commodities: An Ever-Changing Balance -- Investing in Commodities -- Private Investment in Commodities -- Public Investment in Commodities -- Commodity Styles and Benchmarks -- Basic Sources of Return and Risk -- Performance: Fact and Fiction -- Return and Risk Characteristics -- The Myth of Average: Commodity Index Return in Extreme Markets -- Commodity Annual Performance -- Commodity Subsector Index: Annual Commodity Performance -- Performance in 2008 -- Special Issues in Commodity Investment -- Green Commodity Investment -- Commodities as an Inflation Hedge -- Commodity Total Return Attribution -- Backwardation and Contango -- Comparison between Direct and Equity-Based Commodity Investment -- Comparison between Equity-Based Mutual Fund and Exchange-Traded Fund Commodity Investment -- A Personal View: Issues in Commodity Investment -- Distributional Characteristics -- Governance and Micromarket Structure -- Other Issues -- What Every Investor Should Know -- Myths and Misconceptions of Commodity Investment -- Myth 5.1: One Commodity Index Is Like the Other -- Myth 5.2: Commodities Provide a Natural Diversifier to Traditional Assets (Stocks and Bonds) -- Myth 5.3: Commodities Do Not Have to Be Part of an Investor's Portfolio If One Holds Commodity Stocks -- Myth 5.4: Commodity Indices Are Similar to Equity Indices -- Myth 5.5: Commodity Investment Is Speculation -- Chapter 6 Private Equity: Its True Value? -- Investing in Private Equity -- Angel Investors -- Venture Capital -- Leveraged Buyouts -- Mezzanine and Distressed Debt Investing -- Private Investment in Public Equity -- Private Equity Styles and Benchmarks -- Basic Sources of Risk and Return -- Performance: Fact and Fiction -- Return and Risk Characteristics.

The Myth of Average: Private Equity Index Return in Extreme Markets -- Private Equity Annual Performance -- Performance in 2008 -- Issues in Private Equity Investment -- Private Equity Indices -- Alternatives to Investment in Private Equity -- Private Equity as Public Equity -- Special-Purpose Acquisition Corporations -- Business-Development Companies -- A Personal View: Issues in Private Equity Investment -- What Every Investor Should Know -- Myths and Misconceptions of Private Equity -- Myth 6.1: Last Year's Private Equity Performance Is Indicative of Next Year's Private Equity Performance -- Myth 6.2: One Private Equity Benchmark Is As Good As Another -- Myth 6.3: A Single Private Equity Index Is Sufficient to Capture Private Equity Returns -- Myth 6.4: There Exists a Single Proper Way to Measure Private Equity Performance -- Chapter 7 Real Estate: The New World -- Investing in Real Estate -- Housing or Residential Real Estate Properties -- Commercial Real Estate Properties -- Farmland -- Timberland -- Private and Public Commercial Real Estate Debt -- Real Estate Styles and Benchmarks -- Basic Sources of Risk and Return -- Performance: Fact and Fiction -- Return and Risk Characteristics -- The Myth of Average: Real Estate Investment Trust Index Return in Extreme Markets -- Real Estate Annual Performance -- Performance in 2008 -- The U.S. Real Estate ``Bubble'' and the Subprime Mortgage Crisis of 2007 to 2010 -- Special Issues in Real Estate -- Commercial and Residential Real Estate Investments -- A Personal View: Issues in Real Estate Investment -- Distributional Characteristics -- Micromarket Structure -- What Every Investor Should Know -- Myths and Misconceptions of Real Estate -- Myth 7.1: Real Estate Investments Are a Natural Diversifier -- Myth 7.2: Real Estate Benchmarks Reflect Reality.

Myth 7.3: Local Commercial and Noncommercial Real Estate Investments Have Similar Performance Patterns.