A review of

Dynamic Portfolio Theory and Management by Richard E. Oberuc

as found on Amazon.com

December 16, 2003

Reviewer: Yong Chen from Boston, MA

This is an impressive, sparking and informative book, aiming at explaining and implementing the methodology of dynamic portfolio management. I enjoyed very much reading through. This well-organized book essentially covers two parts.

The first part, from Chapter 1 to 9, contains a concise survey of the academic innovations in portfolio management in the past five decades, with the author's useful insights on these models and evidence. In particular, it emphasizes on the idea of dynamic portfolio allocation, which uses broad economic information to actively manage investment allocation. This part contains not only elegant models but also insightful intuition, so that this book becomes readable to virtually anyone interested in portfolio investment and management. So I think it can be an excellent reference for both doctoral students and financial practitioners in this field.

The second part advocates DynaPorte investment model that links asset allocations directly to economic factors. DynaPorte represents innovations of incorporating economy-wide information into your portfolio formation, which is the essence of dynamic portfolio management. Moreover, the recent academic evidence against the Random Walk Hypothesis has opened the door to superior long-term investment returns through such kinds of active investment management. I believe that the DynaPorte can help improve the practitioners' understanding of dynamic investment and thus make better use of various kinds of information.


Copyright 2007 Burlington Hall Asset Management, Inc. All rights reserved.

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