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	Invited Editorial Comment: *Rational Decision Making under Uncertainty: Observed Betting Patterns on a Biased Coin* VICTOR HAGHANI Founder and CEO of Elm Partners RICHARD DEWEY Independent Researcher

		Invited Editorial Comment: Do Index Buyers Make Overvalued Stocks More Overvalued? VICTOR HAGHANI Founder and CEO of Elm Partners

	Does Past Performance Matter in Investment Manager Selection? DAVID NANIGIAN Associate Professor of Finance and Director of the Personal Financial Planning Program in the Mihaylo College of Business at California State University The authors empirically investigate the impact of commonly used manager selection heuristics that involve redeploying assets from under-performing to outperforming managers.

Does Past Performance Matter in Investment Manager Selection?

DAVID NANIGIAN
Associate Professor of Finance and Director of the Personal Financial Planning Program in the Mihaylo College of Business at California State University

The authors empirically investigate the impact of commonly used manager selection heuristics that involve redeploying assets from under-performing to outperforming managers.

		Sin Stocks Revisited: Resolving the Sin Stock Anomaly DAVID BLITZ Head of Quantitative Equity Research at Robeco Asset Management

	Anchored in Reality or Blinded by a Paradigm: The Role of Cap-Weighted Indices in the Future MARC R. REINGANUM Senior Managing Director and Chief Quantitative Strategist at State Street Global Advisors The preponderance of evidence indicates that cap-weighted market indices are not necessarily the be all and end all for investors.

Anchored in Reality or Blinded by a Paradigm: The Role of Cap-Weighted Indices in the Future

MARC R. REINGANUM
Senior Managing Director and Chief Quantitative Strategist at State Street Global Advisors

The preponderance of evidence indicates that cap-weighted market indices are not necessarily the be all and end all for investors.

		What Is an Index? ANDREW W. LO Charles E. and Susan T. Harris Professor at MIT Sloan School of Management, Principal Investigator at MIT Computer Science and Artificial Intelligence Laboratory, and Chief Investment Strategist at AlphaSimplex Group, LLC. Any portfolio strategy that satisfies three properties should be considered an index: (1) it is completely transparent; (2) it is investable; and (3) it is systematic, i.e., it is entirely rules-based and contains no judgment or unique investment skill.

What Is an Index?

ANDREW W. LO
Charles E. and Susan T. Harris Professor at MIT Sloan School of Management, Principal Investigator at MIT Computer Science and Artificial Intelligence Laboratory, and Chief Investment Strategist at AlphaSimplex Group, LLC.

Any portfolio strategy that satisfies three properties should be considered an index: (1) it is completely transparent; (2) it is investable; and (3) it is systematic, i.e., it is entirely rules-based and contains no judgment or unique investment skill.

	The Road Not Taken JOHN C. BOGLE Founder and Former Chairman of The Vanguard Group and of Vanguard 500 Index Fund

		David and Goliath: Who Wins the Quantitative Battle? JOHN C. BOGLE Founder and Former Chairman of The Vanguard Group and of Vanguard 500 Index Fund

	The Hunt for a Low-Risk Anomaly in the USD Corporate Bond Market BRUCE D. PHELPS Managing Director at Barclays Capital Inc. To investigate, the authors sort corporate bonds according to various common risk measures and examine whether risk-adjusted returns decline as risk measure, they find conflicting evidence of a low-risk anomaly.

The Hunt for a Low-Risk Anomaly in the USD Corporate Bond Market

BRUCE D. PHELPS
Managing Director at Barclays Capital Inc.

To investigate, the authors sort corporate bonds according to various common risk measures and examine whether risk-adjusted returns decline as risk measure, they find conflicting evidence of a low-risk anomaly.

		Smart Beta: The Owner’s Manual RONALD N. KAHN Global Head of Scientific Equity Research at BlackRock Smart beta products have captured the interest of investors. But where do they fit in their portfolios? The typical investor, who currently owns active and index products, should own active, index, and smart-beta products.

Smart Beta: The Owner’s Manual

RONALD N. KAHN
Global Head of Scientific Equity Research at BlackRock

Smart beta products have captured the interest of investors. But where do they fit in their portfolios? The typical investor, who currently owns active and index products, should own active, index, and smart-beta products.

	Behavioral Finance: Peter Bernstein and The Journal of Portfolio Management MEIR STATMAN Glenn Klimek Professor of Finance at Santa Clara University's Leavey School of Business Peter Bernstein encouraged and guided the author of this article as he contributed to the construction of behavioral finance in the pages of The Journal of Portfolio Management.

Behavioral Finance: Peter Bernstein and The Journal of Portfolio Management

MEIR STATMAN
Glenn Klimek Professor of Finance at Santa Clara University's Leavey School of Business

Peter Bernstein encouraged and guided the author of this article as he contributed to the construction of behavioral finance in the pages of The Journal of Portfolio Management.

		Lightening Strikes: The Creation of Vanguard, the First Index Mutual Fund, and the Revolution It Spawned JOHN C. BOGLE Founder and Former Chairman of The Vanguard Group and of Vanguard 500 Index Fund “Lightning Strikes” tells the story of how John Bogle came to create a unique mutual fund structure in 1974, and how the index fund strategy almost inevitably followed.

Lightening Strikes: The Creation of Vanguard, the First Index Mutual Fund, and the Revolution It Spawned

JOHN C. BOGLE
Founder and Former Chairman of The Vanguard Group and of Vanguard 500 Index Fund

“Lightning Strikes” tells the story of how John Bogle came to create a unique mutual fund structure in 1974, and how the index fund strategy almost inevitably followed.

	The Deflated Sharpe Ratio: Correcting for Selection Bias, Backtest Overfitting, and Non-Normality MACROS LÓPEZ DE PRADO Senior Managing Director at Guggenheim Partners, and Research Fellow at Lawrence Berkeley National Laboratory in Berkeley Marcos López de Prado expands on his thoughts about the deflated Sharpe Ratio as published in his Journal of Portfolio Management 40th Anniversary issue article.

The Deflated Sharpe Ratio: Correcting for Selection Bias, Backtest Overfitting, and Non-Normality

MACROS LÓPEZ DE PRADO
Senior Managing Director at Guggenheim Partners, and Research Fellow at Lawrence Berkeley National Laboratory in Berkeley

Marcos López de Prado expands on his thoughts about the deflated Sharpe Ratio as published in his Journal of Portfolio Management 40th Anniversary issue article.

		Evaluating Trading Strategies CAMPBELL R. HARVEY Professor at Duke University Durham, NC, and a Fellow at the National Bureau of Economic Research in Cambridge In this article, the authors provide some new tools to evaluate trading strategies. When it is known that many strategies and combinations of strategies have been tried, it is necessary to adjust our evaluation method for these multiple tests./span>

Evaluating Trading Strategies

CAMPBELL R. HARVEY
Professor at Duke University Durham, NC, and a Fellow at the National Bureau of Economic Research in Cambridge

In this article, the authors provide some new tools to evaluate trading strategies. When it is known that many strategies and combinations of strategies have been tried, it is necessary to adjust our evaluation method for these multiple tests./span>

	Constraints and Innovations for Pension Investment: The Cases of Risk Parity and Risk Premia Investing WAI LEE CIO and Director of Research at the Quantitative Investment Group of Neuberger Berman Firms are promoting risk parity and risk premia, but these strategies don’t present any new insights about investing, nor are they new asset pricing theories that help improve return forecasts, Wai cautions./span>

Constraints and Innovations for Pension Investment: The Cases of Risk Parity and Risk Premia Investing

WAI LEE
CIO and Director of Research at the Quantitative Investment Group of Neuberger Berman

Firms are promoting risk parity and risk premia, but these strategies don’t present any new insights about investing, nor are they new asset pricing theories that help improve return forecasts, Wai cautions./span>

		Price Discovery: The Economic Function of a Stock Exchange NAZLI SILA ALAN Ph.d. Candidate at the Zicklin School of Business, Baruch College, CUNY ROBERT A. SCHWARTZ Marvin M. Speiser Professor of Finance and University Distinguished Professor at the Zicklin School of Business, Baruch College, CUNY Everybody knows the function of a stock exchange is to match trades. But there is another function that is underappreciated and vitally important.

Price Discovery: The Economic Function of a Stock Exchange

NAZLI SILA ALAN
Ph.d. Candidate at the Zicklin School of Business, Baruch College, CUNY
ROBERT A. SCHWARTZ
Marvin M. Speiser Professor of Finance and University Distinguished Professor at the Zicklin School of Business, Baruch College, CUNY

Everybody knows the function of a stock exchange is to match trades. But there is another function that is underappreciated and vitally important.

	Investing Under Inflation Risk GEORGE CRAWFORD Head of Investment Research Foundation in New York

		Liquidity and Portfolio Choice: A Unified Approach WILL KINLAW Senior Managing Director of State Street Associates MARK KRITZMAN President and CEO of Windham Capital Management DAIVD Turkington Managing Director of State Street Associates Winner of the Peter L. Bernstein Award 2013

Liquidity and Portfolio Choice: A Unified Approach

WILL KINLAW
Senior Managing Director of State Street Associates
MARK KRITZMAN
President and CEO of Windham Capital Management
DAIVD Turkington
Managing Director of State Street Associates

Winner of the Peter L. Bernstein Award 2013

	The Devil in HML’s Details CLIFFORD ASNESS Founding and Managing Principal at AQR Capital Management

		The Aftermath of Investment-Grade Distress BRUCE D. PHELPS Managing Director of Barclays Capital Inc.

	Invited Editorial Comment: Herd on the Street ROBERT A. SCHWARTZ Founding and Managing Principal at AQR Capital Management

		Fighting the Next Battle: Redefining the Inflation-Protected Portfolio JON RUFF Director of Research for AB Real Asset Strategies at AllianceBernstein

	The Clash of the Cultures JOHN C. BOGLE Founder of the Vanguard Group

		Risk-Based Asset Allocation: A New Answer to an Old Question? WAI LEE Director of Research and CIO of the Quantitative Investment Group at Neuberger Berman Winner of the Peter L. Bernstein Award 2012

Risk-Based Asset Allocation: A New Answer to an Old Question?

WAI LEE
Director of Research and CIO of the Quantitative Investment Group at Neuberger Berman

Winner of the Peter L. Bernstein Award 2012

	Invited Editorial Comment: In Diversification We Trust? LIONEL MARTELLINI Professor of Finance at the EDHEC Business School and the Scientific Director at the EDHEC-Risk Institute

		The Sustainability of Endowment Spending Levels: A Wake-up Call for University Endowments GREGORY P. HO President and COO of Spring Mountain Capital HAIM A. MOZES Senior Quantitative Consultant at Spring Mountain Capital, and an Associate Professor of Accounting at Fordham University Graduate School of Business

	Risk-Adjusted Performance LEAH MODIGLIANI U.S. Investment Strategist at Morgan Stanley & Co. Inc

		Invited Editorial Comment: Risk is a Choice Rather Than a Fate ANDRÉ F PEROLD George Gund Professor of Finance and Banking at the Harvard Business School and Founder and Chair of the Investment Committee, High Vista Strategies

	An Alternative Future CLIFFORD S. ASNESS Managing and Founding Principal at AQR Capital Management

		Risk Management Lessons Worth Remembering from the Credit Crisis of 2007–2009 BENNETT W. GOLUB Vice Chairman and Chief Risk Officer at BlackRock, Inc.

	The Deeper Causes of the Financial Crisis: Mortgages Alone Cannot Explain It MARK ADELSON Chief Strategy Officer at The BondFactor

		The Journal of Portfolio Management Is a Communications Platform PETER L. BERNSTEIN Founding Editor, The Journal of Portfolio Management The motivation behind launching JPM was a desire to bring the latest developments in financial theory and its applications, Peter explains.

The Journal of Portfolio Management Is a Communications Platform

PETER L. BERNSTEIN
Founding Editor, The Journal of Portfolio Management

The motivation behind launching JPM was a desire to bring the latest developments in financial theory and its applications, Peter explains.

	Invited Editorial Comment: *Institutional-Grade Risk Management Policy: Is It Possible in Practice?* JEFFREY HALPERN CEO, Risk Advisory at Midpoint Partners LLC JIM K. LIEW Adjunct Professor at NYU Stern School of Business

		Invited Editorial Comment: *Inconsistent by Definition* MARTIN FRIDSON Clobal Credit Strategist at BNP Paribas Investment Partners

	Invited Editorial Comment: *The Surprising Implications of the Lehman Default for Derivatives and Structured Finance* PETER NICULESCU Partner at Capital Market Risk Advisors

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