cialis uprima viagra
viagra and alcohol
viagra uk
levitra purchase
cialis europe viagra
cialis uk
comprare viagra
levitra vs viagra
cialis viagra
drug viagra
mail order viagra
discount viagra online
20mg cialis
purchase viagra online
cialis mt tadalafil
where to buy viagra
cialis soft
canada cialis generic
cialis mt
viagra canada
how viagra works
buy cialis
levitra buy
order viagra online
cialis soft tabs
get viagra
cialis versus viagra
levitra online
viagra erection
swine influenza
cialis tadalafil
cialis new viagra
cialis dosage
cialis professional
buy viagra
cialis get viagra
generic viagra
generic tadalafil
cheap viagra uk
cialis online
cialis generic
cialis open western
viagra online
levitra tablets
medicaid viagra
cialis com
levitra price
viagra substitute
levitra mg
levitra alternative
levitra cheap
viagra pharmacy
cialis jelly
canada cialis
levitra sales
viagra soft tab
levitra for sale
cialis compare levitra
cialis discount generic
viagra 50mg
cialis generic price
viagra cialis
levitra canada
cialis mexican
cialis testimonials
cialis lowest price
viagra dosage
cialis experience
levitra dosage
viagra research
cialis drug
cheap viagra online
viagra levitra
viagra soft
cialis discount
cialis purchase
viagra wholesale
online levitra
cheapest cialis
viagra for sale
affordable viagra
cialis effects side
viagra commercial
viagra prescription
viagra sales uk
viagra information
viagra professional
viagra story
low cost viagra
offender viagra
cheap cialis
cialis order
viagra side effects
female viagra
levitra prescription
cialis viagra vs
cialis mexico
buy cheap cialis
trial viagra
viagra soft tabs
viagra mexico
cialis levitra vs
viagra sale
cialis review
pfizer viagra
cialis germany
cialis levitra viagra
herbal viagra
cialis online purchase
cheap cialis generic
best price viagra
buying viagra
tadalafil citrate
viagra on line
viagra online pharmacy
cialis lilly
viagra trial
viagra alternative
cialis compare viagra
cialis generic viagra
cialis levitra
penis growth oil
canadian cialis
effects of viagra
cialis online pharmacy
cialis sale
levitra cost
generic levitra
viagra cialis levitra
penisole
viagra for woman
womens viagra
buy generic viagra
cialis company
cialis pill
cialis soft tab
cialis tablet
cheap viagra
apotheke cialis
purchase viagra
cialis sample
citrate sildenafil
cialis europe get
comprare cialis
cheapest viagra
save on drugs viagra
viagra jelly
viagra sales
save on pills
discount levitra
cialis generic online
cialis prescription
generic viagra online
levitra drug
save on drugs
viagra price
oseltamivir
cialis online order
cialis why
100mg viagra
viagra sale online
cialis price
cialis liquid
cialis pharmacy
order viagra
viagra vs cialis
woman taking viagra
cialis discount online
viagra use
penis extender
cialis commercial
natural viagra
blindness cialis
cialis woman
viagra shop
levitra order
levitra pills
viagra sample
viagra pill
discount viagra
levitra safe
where to buy levitra
best cialis price
levitra professional
cialis vs viagra
how does viagra work
buying viagra online
how levitra works
levitra
lowest viagra price
cheap generic viagra
cialis from india
free porn
Download Movie

The Best Business Model - Ever

Jan 15th, 2007 | Filed under: CAPM / Alpha Theory

This is the third and final posting on Alexander Ineichen’s new book Asymmetric Returns.  In it, Ineichen argues that alpha is the result, not of security-selection per se, but of downside risk mitigation.  He rounds out the 300-page book with a discussion of the implications for asset managers and the future of alpha.

A License to Print Money

What is the best business model ever?  Alexander Ineichen knows - and it’s not a hedge fund manager (at least, not exactly).  Answer: a lottery.  He calls a lottery “the best business model - ever.”  In fact, Ineichen says that their extreme profitability is the main reason governments haven’t been able to keep their hands off them.

But why?  Explains Ineichen:

“…cash flows are stable (since) the sample of fools buying lottery tickets is fairly stable…they already (presumably) know that their purchase is uneconomical from a probability-weighted expected return point of view.”

Ineichen goes on to explain that the “fools” to which he refers are really just players behaving uneconomically.   Calling casinos the “second best business model ever”, he raises a point that is central to the argument that alpha actually exists.  He says casino gambling losers aren’t really “losers” after all since they benefit from a “form of entertainment and sensation”. Regular readers will recognize this as being similar to the arguments put forth by Max Darnell and others to explain why alpha might be somewhat immortal.

More…


To continue reading this article please login (at the right) or click here to learn more about accessing our archives.

One comment
Leave a comment »

  1. […] With their perfectly-timed trains and neatly-arranged homes, the Swiss are big fans of symmetry.  This makes UBS’s resident hedge fund guru Alexander Ineichen all the more of an anomaly.  His book Asymmetric Returns has been garnering a lot of attention not because it espouses order and regularity, but because it so vocally challenges the status quo, refutes conventional wisdom and, well, questions symmetry itself. […]

Leave Comment