Finding the [Financial] Cost of Socially Responsible Investing
Socially responsible investing (SRI) is an increasingly important investment issue, gaining popularity among both institutional and individual investors. In the past, SRI research has almost exclusively focused on whether or not there is a financial “cost” in SRI. With rare exception, no material cost has been observed. We find if we examine SRI in terms of total costs and benefits (i.e., financial and social), there may not be a cost, but when considering only financial cost, there must be a cost in SRI. We examine several economic principles that require such cost and estimate what this cost might be. Finally, we address why we have not “seen” a financial cost in SRI thus far.
* Minor, Dylan. “Finding the [Financial] Cost of Socially Responsible Investing.” The Journal of Investing, Fall 2007
Transcending the Active/Passive Debate
We expose some common fallacies of index investing and show how strategically including index and active funds can yield greater risk adjusted performance than using either type exclusively via optimization techniques.
* Minor, Dylan. “Transcending the Active/Passive Debate.” The Journal of Portfolio Management,Winter 2003.
Beware of Index Fundamentalists
We compare the efficacy of using index versus actively managed funds.
* Minor, Dylan. “Beware of Index Fundamentalists.” The Journal of Investing, Summer 2001.
To Catch a Thief II (pdf)
We extend the previous study to include using the Capture Ratio for all major asset classes of institutional money managers.
* Minor, Dylan. “To Catch a Thief II.” The Journal of Investment Consulting, Summer 2003.
To Catch a Thief (pdf)
We empirically examine using the Capture Ratio to select mutual funds ex-ante for ex-post superior performance.
* Minor, Dylan and Collette Barr. “To Catch a Thief.” The Journal of Investment Consulting, Winter 2001.