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Eric Falkenstein

Eric Falkenstein is an economist who specializes in quantitative issues in finance: risk management, long/short equity investing, default modeling, etc.

Eric received his Ph.D. in Economics from Northwestern University , 1994 and his B.A. in Economics from Washington University in St. Louis, 1987

He is the author of the 2009 book Finding Alpha.

Visit: Eric Falkenstein's Website




Eric Falkenstein's Latest Articles | 109

Hedges Don’t Lose Money?

May 14, 2012| 

I was working out watching Jamie Dimon squirm like a worm, reminding me of Lawrence Summers pathetic recant of his rather innocuous speculation about gender talent... Read »

Harvard Risk Confabulations

Apr 11, 2012| 

John Campbell is one of the world’s most esteemed financial economists, which means that he publishes very rigorous and well-received papers showing that some... Read »

SEC Probes High Frequency Trading

Apr 4, 2012| 

A WSJ article discusses what the SEC is looking at: The SEC is examining whether such order types unfairly allow high-speed traders to jump ahead of other investors... Read »

JOBS Act to Bring Light to Hedge Funds

Apr 3, 2012| 

A great example of way regulations tend to protect industries from competition more than help consumers, a great example is the law that prevents hedge funds from... Read »

Hedge Fund Profits Near Zero

Mar 27, 2012| 

The graph above shows the portion of hedge fund profits that go to the hedge funds, the fund-of-funds, and the investors, using total dollars from 1998-2010. This... Read »

VXX Expensive Again

Mar 6, 2012| 

Looking at the SPX index, actual annualized volatility has been below 10 for the past couple months, which is very low historically. Funny you don’t hear about... Read »

Insurance and Pooling Equilibria

Jan 25, 2012| 

In the bad old days, insurance was a way to smooth cash flows from improbable but large expenses: fire, health, auto mishaps. Through repetitious metonymy, ‘health... Read »

Wikipedia Black Out Working

Jan 19, 2012| 

Many of my favorite websites (Fark, Wikipedia) staged a protest against some intellectual property legislation coming down the pike, and it seems to have been successful.... Read »

Banks Discriminate Against Half Their Customers

Jan 12, 2012| 

From the WSJ, I found this funny. It seems when you are being sued for Politically Correct crimes, the logic they use against you can be absurdly weak, because the... Read »

Bank Lending Pathetic

Jan 4, 2012| 

Banks are highly regulated institutions, and so they respond to regulators. A friend shares with me the following anecdote. He thinks real estate is cheap, and wants... Read »

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