Victor Haghani uses the puzzle of the missing billionaires to help us think about how most investors fail to capture the returns offered by the market. He has a simple but powerful message for those who aren’t satisfied with the status quo: it’s called “Active Index Investing” and it represents nothing less than a complete paradigm shift in the way investors manage their savings for the long haul. This approach combines the best features of low-cost index funds with the successful aspects of active management, all for 1/10th the price that many investors currently pay. (filmed at TEDx St Paul’s School for Boys, London)
Bio:
Victor Haghani spent nearly 20 years actively involved in markets and financial innovation. After graduating from the London School of Economics in 1984, he joined the bond portfolio analysis group at Salomon Brothers, and later become 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 thinks about the economy, markets and investing. Since that time he has been involved in a variety of activities, including research and lecturing at the LSE, where he is a Senior Research Associate in the Financial Markets Group. Through a careful study of the academic literature on investing and many thought-provoking discussions with friends, colleagues, and investors of all backgrounds, Victor concluded that ordinary savers can and should do much better. Elm Partners was founded to help investors manage their savings in an efficient and disciplined manner, and to capture the long term returns they ought to earn.