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Rick Bookstaber leads risk research at MSCI. He has held the role of chief risk officer at two of the world’s largest hedge funds, Moore Capital and Bridgewater, at the investment banks Morgan Stanley and Salomon and, most recently, at the pension and endowment of the University of California. During the 2008 global financial crisis Rick served at the U.S. Treasury Department and Securities and Exchange Commission to help reformulate the oversight of the financial system. He is the author of The End of Theory and A Demon of Our Own Design. Rick holds a doctorate in economics from the Massachusetts Institute of Technology. He holds a doctorate in economics from the Massachusetts Institute of Technology.
Research and Insights
Articles by Rick Bookstaber
How Asset Owners Are Redefining the Total Portfolio Approach
8 mins read Blog | Nov 12, 2024 | Henry Fernandez, Ashley Lester, Rick Bookstaber, Julia Giguere-MorelloAttendees at the MSCI Institutional Investor Forums in the U.S. and Canada agreed that the investment megatrends they see underscore the need to centralize risk in investment decision-making, making a total portfolio approach increasingly attractive.
Scenario Analysis: How Could a Credit Crisis Affect Portfolios?
5 mins read Blog | Jul 25, 2024 | Rick Bookstaber, Thomas Verbraken, Dora PribeliWe examine a scenario for how a sudden disruption in credit markets could affect portfolios, especially given indications of the market’s fragility.
Fabric’s Approach to Scenarios
Research Report | Dec 15, 2023 | Rick Bookstaber, Dhruv SharmaScenarios are a way of positing the material risks that arise from the combination of events and market vulnerability. The core of understanding risk, the task of building scenarios, is not mechanical and is not trivial. It is alive as a narrative.
The Problem of Rebalancing Using Optimization Techniques
Research Report | Oct 17, 2022 | Rick Bookstaber, Dhruv SharmaMean-variance optimization is difficult to customize for a heterogeneous set of clients. Modern technology can help advisers move from machine-driven optimization to guided rebalancing that respects market realities and client objectives.
Managing Material Risk
Research Report | Jul 1, 2022 | Rick Bookstaber, Dhruv SharmaRisk management for individuals and other asset owners differs from that of financial institutions. It’s time for a fresh mindset and new tools for these market participants. The authors propose measuring material risk through agent-based models.