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Finance Education: “THE BASICS” With Mr. Sharath Sury – part 1 of 10

 “THE BASICS” With Mr. Sharath Sury – part 1 of 10

Posted by Everything-Finance.net 5/13/2010 2:55 PM
 
 
The following contains excerpts from an interview with Mr. Sharath M. Sury on 05/11/2010.  Although I was nervous (as any fan would have been), struck with awe and inspiration over the simplest of words being spoken by my role-model, Professor S.M. Sury remained humble and was pleased to help as always.  Part one of a ten part series begins below.

Recently, I sat down with Professor Sharath M. Sury, 38, whose career in professional finance began after earning an MBA with High Honors from the University of Chicago.  I met with Mr. Sury to discuss some of the more common questions the Forum has been asked when students first begin learning finance on a high school or collegiate level. 

With an impressive resume that we all hope to emulate (if at all possible), Sharath Sury remains a highly sought after source of financial information and education – and even more so after his recent retirement as CEO from S4 Capital, LLC.  Often, we receive emails asking us the definitions of commonly used lingo on Wall Street, and while we realize that these terms may be commonplace on The Street, the average layman’s dialogue may only encompass these words when speaking of sports, or perhaps casually pondered when succinctly mentioned on the evening news.

Let’s briefly explore the intricacies of both “Bull Markets” and “Bear Markets” with valuable explanations from the revered Professor Sharath Sury, and for the sake of:  1) those who have never become familiar with the terms; 2) those who wouldn’t mind a refreshing reinforcement of the terms; 3) avoiding the misuse of commonly used terms while gaining an understanding of the fundamentals for each type of market label; and 4) simply wanting to include “Everything Finance” on Everything-Finance.net.

After asking Professor Sury if he would be kind enough to help us again (as he did with his acclaimed explanation of the Alpha), he agreed without hesitation, and asserted his willingness and desire to help as many students and enthusiasts as time allowed, without regard to how easy or difficult questions will be, and without concern to how much finance education any particular individual has.  It is our hopes that having such credible and trusted authorities (like Profs Sharath and Manda Sury ) answering some of our forum newbies’ most common, basic questions will support the members’ faith and belief that there really is ONE place online to have your questions answered by experts in finance [shameless plug: Everything-Finance.net]; that  novices, intermediates, or advanced students should never hesitate to ask questions – no matter how “ridiculous” others may deem those questions to be. Professor Sury emphasized that no question is “silly”, or beyond a worthy and accurate explanation by recognized professionals and venerated field experts (as all serious students should have access to).  We both agree that this additional avenue of communication is a necessary component in Sharath Sury’s Initiative to bring instructors, professionals, and students together in an effort to help facilitate a new, cautious, and responsible generation of finance enthusiasts that will soon shape the economy of our future.

So, with as much control over my admiration for Professor Sury as I could manage (without being blatantly obvious that I may have been too excited to conduct the interview), I asked him to explain what exactly “Bull” and “Bear” Markets are, and suggested that  it could help if he described some of the characteristics associated with each.

Prof. Sharath Sury gave me a reassuring smile and replied, “A ‘bull’ market can be defined as a market in which a particular asset class (e.g., equities or stocks, fixed income or bonds, or commodities, etc.) is experiencing a secular or long term rise either in absolute terms or in relative (to other asset classes) terms.  Thus, if the S&P 500 is exhibiting steady, upward returns—usually for at least a sustained growth of 15-20%, we might surmise that the US large cap equities market (as represented by the S&P 500) is in a ‘bull market’ phase.”

Thrilled with how clear and concise his answers are, I may have been somewhat quick to interrupt, but was eager to ask Professor Sury the reason why some news anchors and hosts claim that there is always a bull market to be found.  Sharath Sury’s gentle demeanor settled my anxious behavior as he answered confidently:  “Because bull markets can also be relative (to other asset classes), it is possible to have a bull market in equities while simultaneously having a bear market [defined in part 2] in bonds, for example.”  Mr. Sury concludes, “This leads some commentators, such as CNBC's Jim Cramer of ‘Mad Money’ to speculate that "...there is always a bull market somewhere.” 

Pausing to ensure that I wouldn’t rudely interrupt him again, Sharath Sury and I exchanged a smile to acknowledge the humor, but was quick to regain my focus as he continued earnestly, “Sustainable bull markets are predicated upon attractive valuations, strong profits growth (in the case of equities/stocks), strong credit (in the case of fixed income/bonds), and so on.”  Sury concedes that it is sometimes difficult to distinguish a genuine bull market from a bear market rally (also discussed in part 2).



SOURCE 
http://blog.suryonline.net/2010/05/14/the-basics-with-mr-sharath-sury--part-1-of-10.aspx

NEWS BULLETIN! SuryOnline.net Shifts the Focus of its website, Mr. Sharath M Sury, to Expert Author and Contributor, Dr. M. Sury.

NEWS BULLETIN! SuryOnline.net Shifts the Focus of its website, Mr. Sharath M Sury, to Expert Author and Contributor, Dr. M. Sury.

Posted by SURYONLINE.NET at 3/18/2010 2:51 PM


The Site Administrators of SuryOnline.net, announced today, that the focus of its website, Mr. Sharath M Sury, will shift to Expert Author and Contributor, Dr. M. Sury.

Additionally, SuryOnline.net will provide a platform for family, friends, and invited guests, to discuss business on every level and subject, from Marketing to Management, and from Accounting to Finance.

We'll also investigate, explore, and discover the rebirth of Entrepreneurism and the recent trends of Entreprenuerial programs in Undergraduate studies.


Check Back Often For More Details!

Make Sure You Got The Latest One: 415-SHARATH is now 312-450-SURY!

415-SHARATH is now 312-450-SURY!
Now You Can, "Tell It 2 Sury"!

Posted by SURYONLINE.NET at 3/18/2010 12:48 AM

 

Beginning Thursday, March 18, 2010, we will be announcing the immediate and official end of the 415 - Sharath comment project, and will be pleased to introduce (312) 450 - Sury as the new, also non-profit, comment line for Dr. M. Sury and Family!

Join us next weekend, starting 3/26/10, as we bid farewell and pay respects to the non-profit project attempt by posting three common questions from 415 - Sharath to be answered by Expert Contributor of Finance and Statistics, Professor M. Sury, online and exclusively at

http://blog.everything-finance.net . 

Then, after some administrative transitions have been quickly implemented, we will begin proceeding with the introduction of Tell It 2 Sury! - the new, interactive comment line for M. Sury and family that replaces 415 - Sharath.  M. Sury, like his son, wants to see participation online and over the phone to give users a platform in which they are encouraged to safely network and solve problems together, instead of secluding themselves — discouraged from what they think is impossible to learn. 

Dr. M. Sury wants these students and future enthusiasts to know that Finance is exciting, fast paced, and can be very rewarding. Like Sharath, M. Sury would like to see a new cooperation amongst students, enthusiasts, finance thought leaders and instructors to get these students more involved, while cultivating an ethical environment with a focus on implementing innovative safe-guards against the types of failures that led to the financial crisis we still face.  While there is no way to stop some students from spitefully turning away from finance, M. Sury hopes to keep students interested with interaction today, attempting to inculcate the new perceptions  that forge  the  new  standards of tomorrow.

So, the next time someone tells you to "Tell It to Someone That Cares", assure that person that you will, indeed; and go "Tell It 2 Sury"!

SOURCE http://blog.suryonline.net/2010/03/17/415sharath-is-now-41542sury.aspx

Tip your Favorite Finance Articles by Expert Sharath Sury to The Top! Vote Now: Your Opinion Counts!

 Sharath Sury Wants to Hear From You, Today!  Voice Your Opinion and vote!

Posted by SURYONLINE.NET at 3/15/2010 1:19 AM

 

  •   Vote for the one of the several Aricles by Sharath M. Sury on Tipd.com, and let your choice be heard!  
  •   You can also call 415-Sharath (* Sury Online advises that long distance charges may apply), and leave a voicemail for the chance to be selected by Sharath M. Sury as one of three messages, monthly, to receive closer attention and examination to, on SuryOnline.net, and/or its affiliate sites.
  • So,  Be Heard!  Sharath Sury Listens.

 

SOURCEhttp://Blog.SuryOnline.net/2010/03/15/now-you-can-voice-your-opinion--vote-for-the-articles-by-sharath-sury-today.aspx

 

 

EXCLUSIVE! Sharath Sury Explains The Alpha to Finance Enthusiasts Worldwide on Everything-Finance.net.

Sharath Sury Explains The Alpha to Eager Finance Enthusiasts and Focused Students Online

Posted by Everything-Finance.net STAFF on 3/6/10

 SANTA CLARA, Calif. March 6/Everything-Finance.net/ -- With many finance students and enthusiasts eager to solidify the concepts of Alpha and Beta within the context of the recent Alternative Investment Summit chaired by Mr. Sharath Sury, many followers have shown continued interest online, posting comments on various blogs that reveal an eagerly awaiting clarification of this elusive Alpha by an experienced, esteemed professional like Sharath Sury - an internationally recognized expert in Risk Management and Asset Allocation. As a former VP at Goldman Sachs, and CEO Emeritus of S4 Capital, Sharath Sury handled very complex investment portfolios of some of the nation's most wealthy families and individuals.  Mr. Sury is has been recognized by numerous notable magazines as one of the top professionals in his field.  Also a revered university instructor, Professor Sury has established a forum for the research and discussion of new developments in economics and finance, with an emphasis on risk management and innovation.  Who better to answer our audience's questions than Mr. Sury, himself?  Everything-Finance.net now has the exclusive, wealth manager's definition of Alpha by Professor Sharath Sury, in his own words:


"In any investment strategy, there are essentially three components to the ex-post return: market related exposure (beta), manager skill or 'risk adjusted excess return' (alpha), and randomness. The goal of any active investment manager is to maximize alpha to the extent possible as this is the portion of the return that is attributable to the manager's skill or strategy. In most cases, it is extremely difficult to know what alpha a manager will produce 'before the fact (ex ante)', however, there are certain clues that can help provide guidance on whether a manager is capable of delivering alpha. Among these maybe: superior execution, highly developed capital market analytic skills, superior processing of public information, ability to exploit systematic mispricings, etc. These and other such sources of alpha are colloquially referred to as 'edge'. Every successful investment manager always strives to maximize their edge, and thus their alpha."

 

Professor Sharath Sury has also generously extended his hand to Everything-Finance.net, offering his expertise again soon!  In the near future Sharath Sury will answer, conceptually clarify, and define additional special investment terms that have significant importance in current and future economic climates.  Special thanks to Professor Sury for taking the time to briefly analyze and precisely define these terms in efforts to help students (and enthusiasts, alike) avoid further confusion on what can already be very complicated subject material.  This is especially true -- as we've found with the Alpha -- if you're not careful about where, and in what context, you find a certain definition. 


About Sharath Sury - Founder and Executive Director of the SCU/Sury Initiative for Financial Innovation & Risk Management (SIFIRM) at Santa Clara University in California’s Silicon Valley, Sharath Sury devotes his time and energy to bringing together thought leaders who can address the development of real-world solutions to the current economic climate. Sharath Sury has worked with some of the brightest and most experienced experts in finance and risk management and aims to bring a greater sense of ethics and responsibility to his profession. Through his efforts, Professor Sury has established this invaluable forum for the research and discussion of new developments in the world of economics and finance and has attracted a renewed spirit of innovation to the industry. Sharath Sury also serves as an Adjunct Professor of Economics at the University of California and Adjunct Professor of Finance at DePaul University in Chicago. Sharath Sury's interest and experience in wealth management began as an Associate and later Vice President at Goldman, Sachs & Co. He later founded and worked at S4 Capital, where he earned numerous accolades for his work.


SOURCE: Everything-Finance.net

http://blog.everything-finance.net/2010/03/06/exclusive-sharath-sury-explains-the-alpha-to-finance-enthusiasts-worldwide-on-everythingfinancenet.aspx  

 

 Copyright 2010 EVERYTHING-FINANCE.net 

Posted by Everything-Finance.net at 3/6/2010 11:13 AM | Add Comment

Have an Interest in Finance and Investing?

 If you have an interest in *anything* related to finance, then It would be worth your time to check out the blog:

 http://blog.suryonline.net !

It contains some very interesting Finance articles and Videos, including Implementing Alternative Investments.

Check Out: www.Site.SuryOnline.net , the HomePage!

Thanks for Visiting This Blog. Make sure to also check out: site.suryonline.net


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