312-251-1301 info@cfachicago.org

Event Detail

Sold Out - Wait List Available - The Future of Risk: Are Risk Models Irrevocably Broken? (Ended)

Date, Time, and Location:
Tuesday, September 29, 2009 (add this event to your Outlook Calendar)
12:00 pm
The Standard Club, 320 S. Plymouth Court, Chicago, IL  60604   (Driving Directions)

Presented by the CFA Society of Chicago

Please join the CFA Chicago Education Advisory Group for an examination on how the current economic crisis has been marked by a failure of risk management. Rating agencies used faulty models, and financial institutions failed to understand the level of risk they faced. Some have suggested that financial theory and models are based on assumptions of normal distributions, but that the markets are not "normal."

The conversation will begin with lunch and a keynote speech by Richard Bookstaber, author of "A Demon of our own Design." In his book, Mr. Bookstaber suggests that some of the very risk management and regulatory systems contributed complexity to the financial markets, increasing potential points of failure. In this engaging talk, Mr. Bookstaber will discuss the current economic situation and place it in the historical context of portfolio insurance and the Long Term Capital Management failure.

Please join us after lunch as our panel delves into the many questions and topics surrounding "Risk":

  • Defining "risk" and how to measure it;
  • The Gaussian Normal Distribution;
  • Models that may replace the current risk management models;
  • How to deal with the outliers and anomalies;
  • What to do when all correlations go to 1;
  • Did the models really fail or was it a failure of the practitioners;
  • And many more...
Luncheon Keynote Speaker:
Richard Bookstaber, Author of "A Demon of Our Own Design"

Introduction by:
Alex Rabinovich, CFA

Panelists:

Timothy Doar, Managing Director, Risk Management - CME Clearing House
Paul Kaplan, CFA, Vice President, Quantitative Research - Morningstar, Inc.
Brian Singer, CFA, CIO/Founder - Singer Partners, LLC

Moderated by:
Rawley Thomas, President - LifeCycle Returns, Inc.

Time, Date, and Location:
Tuesday, September 29, 2009
12:00 - 3:00 pm
The Standard Club
320 S. Plymouth Court

CONFERENCE FEE:
(cash, check and credit card only - NO FUNCTION TICKETS) - Includes conference and lunch.

Members of CFA Chicago - $100
Student-Members - $50*
Non-Members - $125
*Note: This rate is only available to students who have been approved as members of CFA Chicago.

Register for the full conference using the button at the bottom of the page, or call 312-251-1301. Space is limited. See agenda below for details.

LUNCH-ONLY OPTION:
Richard Bookstaber, Author of "A Demon of Our Own Design," 12:00 - 1:15 pm

Lunch-Only Fee: (cash, check and credit card only - NO FUNCTION TICKETS) - Includes lunch and Mr. Bookstaber's presentation only.

$60 - Members
$30 - Student-Members*
$75 - Non-Members
*Note: This rate is only available to students who have been approved as members of CFA Chicago.

Click here to register for lunch-only or call 312-251-1301.

Credit card is required to guarantee all reservations except for ONLINE reservations using FUNCTION TICKETS.
(Visa, MasterCard, American Express, Discover and Diners Club are accepted).

Cancellations accepted until 5:00 pm, September 28. There is a $5 surcharge for walk-ins.

Eligible for 3 credit hours

This Education seminar qualifies for credit under the guidelines for the CFA Institute Professional Development Program. Please click here if you would like more information. Note: The lunch-only option qualifies for 1 credit hour.

A Passport Event This is a "Passport Program." Members of any local CFA society may attend at the CFA Chicago member rate. If you are only a member of CFA Institute, you do not qualify for the society member rate.

AGENDA
11:30 a.m. - 12:00 p.m.: Registration and Networking
12:00 p.m. - 1:15 p.m.: Luncheon and Keynote Speaker

Richard Bookstaber, Author of "A Demon of Our Own Design"
(Introduction by: Alex Rabinovich, CFA)

1:15 p.m. - 1:30 p.m.: Break
1:30 p.m. - 3:00 p.m.: Panel

Timothy Doar, Managing Director, Risk Management - CME Clearing House
Paul Kaplan, CFA, Vice President, Quantitative Research - Morningstar, Inc.
Brian Singer, CFA, CIO/Founder - Singer Partners, LLC
Moderated by: Rawley Thomas, President - LifeCycle Returns, Inc.

BIOS

Luncheon Keynote Speaker: Richard Bookstaber, Author of "A Demon of Our Own Design"
Mr. Bookstaber is a Wall Street insider and outspoken critic of many of today's financial practices who predicted the current economic meltdown. Mr. Bookstaber was named to this year's Conde Nast Portfolio list of top 25 technical innovators, joining the ranks of Steve Jobs, Jeff Bezos, Jeffrey Katzenberg and Eric Schmidt. He has testified in the House and Senate, calling for greater transparency and improved regulation for Wall Street long before it was fashionable (To view his July 15th testimony before the Senate Banking Committee on Hedge Fund Regulation, please visit rick.bookstaber.com). Called "one of Wall Street's 'rocket scientists'" by The New York Times, Mr. Bookstaber is the author of "A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation"- a book that pinpointed the market weaknesses that spun out of control to create today's financial crisis and was ranked number one on Amazon in finance and selected as a finalist for the prestigious Loeb Award.

Mr. Bookstaber recently worked at Bridgewater Associates, the world's largest hedge fund, and before that ran the Quantitative Equity Fund at FrontPoint Partners. He was in charge of risk management at Moore Capital Management, another hedge fund with over $10 billion in assets. He served as the managing director in charge of firm-wide risk management at Salomon Brothers and was a member of Salomon's powerful Risk Management Committee. Mr. Bookstaber also spent ten years at Morgan Stanley, first designing and marketing derivative instruments, then as a proprietary trader, and concluding his tenure there as the firm's first market risk manager. He has won the Graham and Dodd Scroll from the Financial Analysts Federation and the Roger F. Murray Award from the Institute for Quantitative Research in Finance for his research.

Panelists:

Timothy Doar, Managing Director, Risk Management - CME Clearing House
Mr. Doar is Managing Director of Risk Management for the Clearing House Division of Chicago Mercantile Exchange Inc. (CME). Since assuming this position in January 2004, he has managed the Clearing House's exposure to counterparty risk, including monitoring market volatility, setting minimum performance bond requirements and negotiating cross-margin programs. Previously, Mr. Doar assumed operational responsibility for the Clearing House project to establish the provision of clearing services for the Chicago Board of Trade, which was fully implemented on January 2, 2004. In his prior role as Director of Financial Management in the Clearing House, Mr. Doar was responsible for overseeing collateral program development, bank and custodian relationship management, counterparty risk evaluation and risk assessment. Mr. Doar has worked in a variety of clearing house roles during his 19 years with the company, including Manager of Trade Processing Systems, Operations Project Manager and Clearing House Supervisor. In addition, he traded on CME's open outcry floor from 1991 to 1992 and has held a number of back-office positions with futures commission merchants (FCMs).

Paul Kaplan, CFA, Vice President, Quantitative Research - Morningstar, Inc.
Dr. Kaplan is vice president of quantitative research at Morningstar, Inc., responsible for the quantitative methodologies behind Morningstar's fund analysis, indexes, advisor tools, and other services. He conducts research on style analysis, performance and risk measurement, asset allocation, retirement income planning, portfolio construction, index methodologies, and alternative investments. He led the development of quantitative methodologies behind the Morningstar RatingTM for funds, the Morningstar Style BoxTM, and the Morningstar family of indexes. Dr. Kaplan has also served as chief investment officer of Morningstar Associates, LLC, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc., where he developed and managed the investment methodology for Morningstar's retirement planning and advice services. Before joining Morningstar in 1999, Dr. Kaplan was a vice president of Ibbotson Associates and served as the firm's chief economist and director of research (Morningstar acquired Ibbotson in March 2006). Prior to that, he served on the economics faculty of Northwestern University where he taught international finance and statistics. Dr. Kaplan is a member of the review board of the Research Foundation of the CFA Institute, and holds the Chartered Financial Analyst (CFA) designation. He is also the 2008 Graham and Dodd Award recipient and a winner of the 2000 Graham and Dodd Award of Excellence.

Brian Singer, CFA, CIO/Founder - Singer Partners, LLC
Mr. Singer is Founder and Chief Investment Officer of Singer Partners, LLC, a fundamental macro investment firm for long horizon investors. He is the former head of Global Investment Solutions and Americas Chief Investment Officer for UBS Global Asset Management, and was a member of the UBS Group Managing Board and Global Asset Management Executive Committee. Mr. Singer was elected to the CFA Institute Board of Governors in 2004 and currently serves as chair. He is a member of the Research Foundation of CFA Institute Board of Trustees and formerly served as chair of the Candidate Curriculum Committee. In 1991, Mr. Singer co-authored a landmark update to one of the pioneering studies on asset allocation, "Determinants of Portfolio Performance II: An Update," with Gary Brinson and Gilbert Beebower. In 2009, he was the lead author of "Investment Leadership and Portfolio Management." He has served on the Editorial Board of the Financial Analysts Journal and the Advisory Board of the Journal of Performance Measurement, and was awarded a Graham and Dodd award for his work as an author.

Moderator:

Rawley Thomas, President - LifeCycle Returns, Inc.
Mr. Thomas is president of LifeCycle Returns, Inc. (LCRT), located in St. Charles, Illinois. Previously, he served as assistant treasurer of SuperValu Stores, joined Callard, Madden in 1981, co-founded HOLT Planning in 1985, and directed value management research for the Boston Consulting Group for 11 years. Credit Suisse First Boston acquired the successor to HOLT Planning, HOLT Value, in early 2002. Mr. Thomas is also vice president of practitioner services for the Financial Management Association International (FMA) and is chairman of the FMA Practitioner Demand Driven Academic Research Initiative (PDDARI) Advisory Committee, whose objective is to facilitate the development of cutting-edge research useful to practitioners, their firms, and the profession. Through this research initiative the FMA hopes to encourage academic research that addresses practitioner needs and to encourage interaction between the practitioner and academic communities.

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