PT  - JOURNAL ARTICLE
AU  - Cary Blake
AU  - Dean Petrich
AU  - Alex Ulitsky
TI  - The Right Tool for the Job
DP  - 2003 Jun 20
TA  - Trading
PG  - 33--37
VI  - 2003
IP  - 1
4099  - http://guides.pm-research.com/content/2003/1/33.short
4100  - http://guides.pm-research.com/content/2003/1/33.full
AB  - The current tools and approaches to transition management are biased towards either minimizing transaction costs or minimizing risk, but do not appropriately integrate both. This can lead to sub-par results, exposure to unintended risks and costs, and lingering doubts about whether the right decisions were made. This article shows that risk and cost do not have to be a trade-off. The multiperiod optimization (MPO) solution, which simultaneously addresses cumulative transition-period transaction costs and cumulative transition-period portfolio risks, produces a superior transition trade strategy and ensures that both the investor and the transition manager clearly understand the actual risks and costs during the transition period.