Sick of volatility? Pension funds can adapt

The global financial crisis has shown institutional investors the hard way that textbook theory on portfolio and risk management doesn’t work very well. As a result, pension funds, sovereign wealth funds and other investors are rethinking how they measure risk, are rediscovering the benefits of long-term investment, and are changing their relationship with external managers. So argues Ashby Monk, a pensions-focused research director at Stanford University as well as an advisor t…