Foundations of Investment Management

“David Linton is the epitome of a scholar practitioner. He understands the theory, the real world, and how the two interact. Foundations of Investment Management is a comprehensive examination of the process of investing that covers key investment instruments, the markets they trade in, and their role in portfolio construction. Although detailed, it is written in a style that is accessible to non-professionals. Experienced investors will also benefit from insights on the interrelationships between macro-economics, regulators, and markets, and how the keen mind of an experienced investor works. This book will benefit anyone looking to improve their knowledge of, and skill at, investing.”

—Stephen G. Moyer, CFA, Adjunct Professor, University of Southern California, Author of the best-selling Distressed Debt Analysis

“David straddles the theoretical concepts of finance into practical investment material. In the current environment of low interest rates and record high equity markets, David's framework provides a useful guide to navigate the treacherous financial waters of passive and active portfolio management.”

—Ben Emons, Managing Director, Medley Global Advisors, Author of Mastering Stocks and Bonds, The Financial Domino Effect, and The End of the Risk-Free Rate

Foundations of Investment Management: Mastering Financial Markets, Asset Classes, and Investment Strategies shows how to navigate today’s world of complex financial instruments, investment opportunities, and devastating pitfalls. This reader-friendly guide details stocks, bonds, and alternative investments, who invests in these asset classes, how, and why. It uses real-world examples in addition to citing the latest academic research. Additionally, seven industry experts have co-authored select chapters to greatly expand the depth and utility of this book for the reader. This unique guide is perfect for financial analysts, portfolio managers, client-facing representatives, product specialists, and anybody early in their finance career who wishes to understand how clients, products, and investors relate and interact.

Foundations of Investment Management provides a complete overview of the investment management industry; defines key terms and participants; identifies investment vehicles, strategies, and asset classes; and analyzes each strategy focusing on its relative utility and potential inclusion in a well-diversified portfolio. Despite the subject matter’s complexity, each topic is distilled in a way that is highly relatable and intuitive, ensuring the reader knows how to better manage their investments or interact with clients. Lastly, every chapter closes with a summary and investment implications to maximize the information presented.

David E. Linton is the Director of Portfolio Construction and Manager Research at Pacific Life Fund Advisors LLC (PLFA). In his current role, he is responsible for the portfolio construction of the $32 billion PLFA suite of asset allocation products, and he shares responsibility for the manager research and due diligence for roughly $40 billion in sub-advisory relationships.  Additionally, David is a member of the PLFA Investment Committee and Asset Allocation group, specializing in fixed income, and he is the lead trader for the $1.2 billion Pacific Funds Multi-Asset Fund. 

Prior to joining PLFA, Mr. Linton was a Vice President and Portfolio Manager at PIMCO.  While there, he worked in a variety of capacities and his responsibilities included co-managing PIMCO’s overnight cash investing and financing book on the Short-Term Desk, working as a sovereign credit analyst on the Emerging Markets Desk, and trading investment grade non-financial corporate bonds on the Investment Grade Corporate Desk. David was also a Product Manager and member of the PIMCO Solutions group with a focus on Tail Risk Hedging.

Mr. Linton is a CFA^® charterholder, has a BS in Business Administration from the University of Southern California, graduating magna cum laude, and an MBA from the University of Chicago Booth School of Business, graduating with honors.

Part I. Markets, Vehicles, and Participants          

Chapter 1: Financial Assets and Capital Markets with Stephen G. Moyer, CFA, Adjunct Professor, USC Marshall School of Business

Chapter 2: Investment Vehicles         

Chapter 3: Institutional Investors with Matthew Brenner, Managing Vice President, ICMA-RCTBD

Chapter 4: Global Central Banks and the Federal Reserve

Part II. Investing and Portfolio Construction       

Chapter 5: Investment Strategies with Ben Emons, Managing Director, Medley Global Advisors

Chapter 6: Equity Investing with Di Zhou, CFA, FRM, Portfolio Manager and Managing Director, Thornburg Investment Management

Chapter 7: Fixed Income Investing

Chapter 8: Real Asset Investing with Bob Greer, Scholar in Residence, J.P. Morgan Center for Commodities at the University of Colorado Denver Business School, Senior Advisor, Core Commodity Management

Chapter 9: Hedge Funds with Andrew Ross, CFA, FRM, CAIA, Senior Director, Investment Risk and Structured Products, Pacific Asset Management

Part III. Recent Advances in Finance and Investing

Chapter 10:  Factor Investing and Smart Beta with Daniel Villalon, CFA, Managing Director, Portfolio Solutions Group AQR

Chapter 11: Behavioral Finance

Bibliography

Index