David E. Linton - Foundations of Investment Management: Mastering Financial Markets, Asset Classes, and Investment Strategies

This marvelous book is thorough, rigorous, and comprehensiblean unusual combination. It is an indispensable reference for both practitioners and those interested in the investment management arena. It deserves to be on the bookshelf of every serious investor. David Linton has beaten the market of investment books!

William H. Miller III, Founder of Miller Value Partners and Former Chairman and CIO of Legg Mason Capital Management

David Linton successfully tackles the ambitious task of providing an all-in handbook for newly minted finance professionals. The resulting volume offers extensive coverage of the theory and practice of finance, but it also avoids getting bogged down in extraneous details. Lintons remarkable command of the material makes the exposition remarkably clear and, when mixed with some lively anecdotes, even entertaining. I am confident that this book will serve in the years ahead as an essential guide for folks who are new to the industry, as well as for those who have labored on trading floors longer than they might care to admit.

Nathan Sheets, former Under Secretary of the U.S. Treasury for International Affairs and Director of International Finance at the Federal Reserve Board

David Linton is the epitome of a scholar practitioner. He understands the theory, the real world, and how the two interact. Foundations of Investment Management is a comprehensive examination of the process of investing, covering the key investment instruments, the markets they trade in, and their role in portfolio construction. Although detailed, it is written in a style that is accessible to non-professionals. Experienced investors will also benefit from insights on the interrelationships between macroeconomics, regulators, and markets and how the keen mind of an experienced investor thinks. This book will benefit anyone looking to improve their knowledge of, and skill at, investing.

Stephen G. Moyer, CFA, Adjunct Professor, University of Southern California, Author of Distressed Debt Analysis

This book gives the reader an essential inside look at the investment industry from someone whom I have had the pleasure working with in the trenches. Its an accurate, timely, and very readable account of how different pieces of the financial markets, policy making, and investment community come together to create todays market ecosystem. Even more important, the book brings vividly to life the individuals, companies, and policymakers who are behind some of the most important and consequential decisions that will impact our investment future.

Vineer Bhansali, PhD, Founder and CIO, LongTail Alpha, LLC. Former Managing Director and Head of Quantitative Portfolios, PIMCO

David transforms the theoretical concepts of finance into practical investment material. In the current environment of low interest rates and record high equity markets, Davids framework provides a useful guide to navigate the treacherous financial waters of passive and active portfolio management.

Ben Emons, Managing Director, Medley Global Advisors, Author of Mastering Stocks and Bonds, The Financial Domino Effect, and The End of the Risk-Free Rate

Foundations of Investment Management is an ideal balance of breadth and depth; it covers all the critical areas in which a successful asset manager must be proficient while not burying practitioners in technical details. Additionally, reader-friendly anecdotes highlight and simplify complicated principles and each chapter closes with investment implications that ensure the content is actionable. This book is perfect for both seasoned professionals as well as students of the investment management industry, and it is a must read for onboarding investment professionals entering the industry.

Bob Greer, Scholar in Residence, J.P. Morgan Center for Commodities at the University of Colorado Denver Business School, Senior Advisor at Core Commodity Management, Author of Intelligent Commodity Investing

Foundations of Investment Management is an unparalleled volume that is based on well-researched finance principles, but mixes in rich, on-the-ground knowledge from leading practitioners. This book brings in the best of both worlds. The end result is a one-stop shop of investment knowledge. You can save money and space on your bookshelf by having this one volume replace other texts. This is the new go-to book for students, academics, and seasoned professionals.

Dominic Garcia, Chief Investment Officer, New Mexico PERA

David Linton has compiled a very thorough guidebook to the asset management business in Foundations of Investment Management. He offers an extremely user-friendly overview for new investment professionals, those interested in pursuing an investment career, or seasoned professionals who want to better understand how capital markets operate. The book is laid out logically and each chapter stands on its own. Readers will appreciate the friendly and fun approach that David takes to effectively articulate complex subjects.

Michael Skillman, Chief Executive Officer, Cadence Capital Management

Foundations provides a great starting point for young professionals looking to understand both the breadth and details of investing. David does a wonderful job blending a practitioners application with academic theory. The stories are thoughtful and bring to life so many things we hear in the financial press. Having been in the investment industry for over 20 years, resources such as this are hard to find and much needed.

Dominic Nolan, Senior Managing Director, Pacific Asset Management

Copyright 2020 by David Linton

ISBN-13: 978-1-60427-165-2

Printed and bound in the U.S.A. Printed on acid-free paper.

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DEDICATIONS

First, to my beautiful wife, Laurawithout whom this book would never have been writtenI am immensely grateful for the support you have given me and the love and guidance you have given our children.

Second, to my amazing children, Leah, Joshua, and Matthewwithout whom this book would have been written two years earlierI wish you to be good, brave, and happy. Watching you grow has brought me immense joy, and I hope one day you might dust off this book, browse through it, and ask me about it.