In episode 113, Alex Proimos speaks with Jon Lukomnik, author of Moving Beyond Modern Portfolio Theory: Investing That Matters.

This episode discusses the background to Jon’s new book, the problems of modern portfolio theory and it can be described as Maslow’s hammer. We delve into the impact on capital markets caused by institutional investors moving away from the Warren Buffet and Graham and Dodd approach to security analysis to a highly quantitative approach in terms of portfolio construction. We also discuss the risks of moral hazard due to central bank policy and how theory is now being led by empirical evidence in terms of beta activism.