Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (78954)	4/4/2000 3:26:00 AM
From: Michael Bakunin	Read Replies (1) \| Respond to of 132070

Bukun - You say, "S&P500 has been the [emphasis yours] accepted diversified benchmark used in the academia". I say, go to the theoretical basis for indexing. Construct Markowitz's efficient frontier; some combination of an uncorrelated, riskless asset with the tangent efficient portfolio dominates all others. Since investors are rational [ed: cough], this TEP == 'the market'. Academics are simple folk; just because a few, misguided CAPM-heads use the S&P as proxy for theory's TEP [ed: theory, schmeory] doesn't make it "the" benchmark. This is why your being an indexer and yet indexing to a combination of the S&P/NASDAQ confuses me. Hedge funds usually have a global mandate encompassing more than US equities. I don't care about JR any more (besides, we far too little detail), but the marginal evidence leads me to believe his reputation seems deserved. -mb