Best Practices Part I: Portfolio Profile

By Nora Huvane

What are the characteristics that allow a shipping bank to achieve an enviable 17% or higher return on equity – a return that doubles the value of money in less than six years? Is it just dumb luck that cannot be replicated year after year? Does it require fee-based investment banking services? Do you need to take unreasonable risk of principal in defiance of risk and return models? Do you need to overwork and underpay your people?

Or are there recognizable patterns that could be followed and potentially improved upon?

Based on the premise that there is some method to achieving these kinds of returns, we broke down candidates by their return on equity achievement in 2004. The number of those that missed their target is so low that they have been put into one group collectively, labeled “missed.” Some of the results may confirm your expectations, others may interest you, and some will probably surprise you.

This is only an excerpt of Best Practices Part I: Portfolio Profile

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.