Lending, Leverage, Options and the Credit Crisis 10 Years Later

by Bruce I. Jacobs, Pensions & Investments, August 20, 2018: This issue, which is focused on the topic of the global financial crisis a decade later, contains a commentary by Bruce entitled “Lending, Leverage, Options and the Credit Crisis 10 Years Later.” The thesis of the editorial mirrors that of his forthcoming book, Too Smart for Our Own Good: Ingenious Investment Strategies, Illusions of Safety, and Market Crashes.... Bruce notes that a decade after the crisis, many of its underlying causes, including opaque and complex financial products, leverage, the potential for sharp swings in value, and “free lunch” strategies which promise high returns with low risk, continue to threaten market stability.

The Legacy of Stephen A. Ross

by Frank J. Fabozzi, Bruce I. Jacobs, and Kenneth N. Levy, Journal of Portfolio Management, Special Issue Dedicated to Stephen A. Ross, June 2018: This introduction to a special issue dedicated to Stephen A. Ross notes that Ross’s work on the arbitrage pricing theory (APT) opened the door to multifactor... models of asset returns. Bruce and Ken’s own work, “Disentangling Equity Return Regularities: New Insights and Investment Opportunities” (Financial Analysts Journal, 1988), revealed numerous return factors in the U.S. equity market.

Hirings: Montana Board of Investments

Pensions & Investments, May 28, 2018: The Montana Board of Investments has hired Jacobs Levy to manage $170 million in domestic large-cap partial long/short equity.