TY - JOUR T1 - The Right Tool for the Job JF - Trading SP - 33 LP - 37 VL - 2003 IS - 1 AU - Cary Blake AU - Dean Petrich AU - Alex Ulitsky Y1 - 2003/06/20 UR - http://guides.pm-research.com/content/2003/1/33.abstract N2 - 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. ER -