The insurance policy...


interim closing of the books, 161, 164­165
netting, partial vs. full, 164, 168­169
not-for-profit entities, 171
Section 1256, 171
side-pocket allocations, 164, 171­172
Alpha, 123. See also Jensen's alpha
American depositary receipts (ADRs), 64
Angel investors, 198
Annualized return, calculation of, 108­109
Annual-pay bond, 110
Annuities, deferred, 52
"Arb" funds, 27
Arbitrage, see specific types of hedge funds
benefits of, 51
equity, 23­24
strategies, 101
traders, 29
Arithmetic average return, calculation of, 114
Asset Alliance Re, 52
Asset allocation
significance of, 60, 151
tax treatment of, 37­38
Asset-backed securities, investment techniques, 68
Asset management, future directions for, 220­221
Assets
allocation of, see Asset allocation defined, 139­140
Assets under management (AUM), 8­9
At-the-money calls, 212
Auditors, functions of, 219
Audits, 131, 162
Average returns, 37­38
Averaging returns, calculation of arithmetic average return, 114
dollar-weighted returns, 116­117
geometric mean return, 115­116
time-weighted returns, 116
Bacon, Louis, 52
Balance sheets, 78, 138, 143, 146
Bankruptcy
implications of, 24, 28
limited liability and, 77­78
trades, 61­63
Beneficiary, life insurance, 214
Berkshire Hathaway, 64
Beta, 123, 186
Biotechnology sector, 26
Bond(s)
accrued interest, 142­144 convertible, 66­67
prices, 183­184
returns, 16, 29, 39
valuation, 138