
“Asset allocation for an ESG world”
CFA Society Chicago
Are You Getting Ridiculous?
There are smarter ways out there to do it. If you'r going to do an sg, don't do it in this kind of more clumsy, simplistic way. I think that traditionally, we have always been looking at risk in terms of standard daviation. But more and more, i'm looking atrisk in terms of left tail of the distribution of negative scenes. What could be seen as horrible, but forgotten quickly a few years ago might not be seen as just horrible, but also completely unacceptable now. And so i think that both from the economic, the legal and reputation risk, firms are are more careful nowadays.
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