Wednesday, March 2, 2011
The last 10% & Mulligans
Case in point: the second edition of my third book, The Handbook of Investment Performance. I got the transcript wrapped up in relatively quick time, but the editing, layout, etc. seemed to take much longer than we had planned. And as we neared the "finish line," I got an email from someone from CalPERS who had some corrections to errors he discovered: talk about perfect timing! For this I was quite grateful, as I had overlooked some of them in my review. Well, the wait is almost over and the book is at the printers, with a delivery date fast approaching.
The book has served as a "Mulligan" for me. If you're not a golfer you may not be familiar with this term, easily translatable as a "do over." In a casual, friendly game of golf, if a player hits an errant drive it isn't uncommon for him or her to say "I'll take a Mulligan," meaning I will hit that shot again, without any penalty. This book is a Mulligan for me as it is allowing me to make some significant changes to the first edition, which was arguably a Mulligan for my very first book, published by McGraw-Hill.
Shortly after the earlier edition went to print I had an "epiphany" which I would liken almost to being "born again," as it has caused me to develop passion for what has become one of my favorite topics: money- versus time-weighting. I was so pleased to be able to write it that this chapter will be available on the CFA website.
You'll also notice that I have clearly admitted that "Modified Dietz returns are money-weighted." There, I said it again! I have caved into my colleague and friend, Carl Bacon, who long ago chastised me for failing to acknowledge this. And although I had known for some time that he was correct, I hesitated in stating it because it only, I thought, makes this topic even more confusing. I hope that my presentation in the book is lucid. And as for Carl, I do hate it when he is right, but fortunately this does not occur too often.
Our firm is actually running a "pre-order" or "pre-release" special on the book, so if you're inclined to purchase a copy, this is the perfect time. For details please contact Patrick Fowler