Business Case Studies & Business Publications

Pittinos Financial Advisers, LLC

Lipson, Marc L., E...

Case

Pittinos Financial Advisers, LLC

Lipson, Marc L.; Evans, Richard B.

F-1599 | Published August 24, 2009 | 10 pages Case

Collection: Darden School of Business

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The owner of a small financial services firm is evaluating the performance of four funds to determine whether to offer them to his clients. The funds span a variety of objectives and include a recently initiated fund. The case explores issues related to the evaluation of mutual fund performance, including the selection of benchmarks and the effect of fees. The case provides a natural and compelling context in which to discuss market efficiency. At the Darden School of Business, this case has been used in our core introductory finance class to discuss return benchmarks and market efficiency.

(1) Introduce the concept of market efficiency and give students a context in which to discuss this concept. (2) Examine the issues of benchmarking and performance measurement, including the calculation of appropriate risk-adjusted performance measures. (3) Discuss individual investment decisions and the criteria used to make those decisions.