Javier
Estrada

Professor of Financial Management

• Ph.D. in Economics, University of Illinois at Urbana-Champaign
• Master in Finance, University of Illinois at Urbana-Champaign
• B.A. in Economics, Universidad de La Plata (Buenos Aires)

Javier Estrada is a Professor of Finance at IESE Business School in Barcelona, Spain. He is also a partner and financial advisor at Sport Global Consulting Investments, an independent financial advisory company; and he is the sole advisor of the investment strategy of the Alpha Investments mutual fund.

Prof. Estrada holds an M.S. in Finance and a Ph.D. in Economics from the University of Illinois at Urbana-Champaign (USA), and a B.A. in Economics from the National University of La Plata (Buenos Aires, Argentina). His areas of specialization are wealth management, portfolio management, investments, and law & economics.

Prof. Estrada held positions at both the Economics Department and the Finance Department at Carlos III University (Madrid, Spain). He is also a regular visiting professor at HANKEN (Helsinki, Finland), IPADE (Mexico City, Mexico), Torcuato Di Tella University (Buenos Aires, Argentina), and the University of Montevideo (Montevideo, Uruguay), and has lectured on diverse topics and audiences around the world.

Prof. Estrada is the author of Finance in a Nutshell (FT Prentice Hall, 2005), originally written in English and subsequently translated into Spanish, Italian, and Chinese; a second edition of this book was published in 2011, is entitled The FT Guide to Understanding Finance, and was translated into Korean. He is also the author of The Essential Financial Toolkit – Everything You Always Wanted To Know About Finance But Were Afraid To Ask (Palgrave Macmillan, 2011).

Prof. Estrada has done extensive research on the areas of portfolio management, investment strategies, and risk; he has also done research on emerging markets and insider trading. His articles have been published in the Journal of Portfolio Management, the Journal of Investing, the Journal of Asset Management, and the Journal of Wealth Management, among other journals. His research has been discussed on the Wall Street Journal, the Financial Times, Forbes, Barron’s, Morningstar, and on several blogs. He was also the founding editor of the Emerging Markets Review and was editor of the journal between inception in 2000 and 2006.

Prof. Estrada is a member of the CFA Institute’s Speaker Retainer Program; teaches open-enrollment programs and several courses on personal finance and wealth management; and was a tennis instructor.

Areas of interest.

* Portfolio management
* Equities and securities markets
* Emerging markets
* Law and economics

Publications

Journal Articles (refereed)

ESTRADA, J. (2024). Retirement Planning: The Volatility-Adjusted Coverage Ratio. Journal of Retirement, 12 (1), 40 - 60. doi:10.3905/jor.2024.1.152. ESTRADA, J. (2024). Multifactor Funds vs. Homemade Factor Diversification Strategies. Journal of Beta Investment Strategies , 15 (1), pp. 54-65. ESTRADA, J. (2023). Multifactor funds. An early (bearish) assessment. Journal of Asset Management, 24 (4), 299-311. doi:10.1057/s41260-023-00314-3. ESTRADA, J. (2023). Retirement planning: is one number enough? Journal of Financial Planning, 36 (7), 64-81. ESTRADA, J. (2022). PVGO and expected stock returns. Journal of Applied Corporate Finance, 34 (4), 109-112. doi:10.1111/jacf.12534. ESTRADA, J. (2022). The Gain-pain index. Asset allocation for individual (and other?) investors. Journal of Wealth Management, 25 (2), 34-48. doi:10.3905/jwm.2022.1.173. ESTRADA, J. (2022). No Hedge funds, no cry. Journal of Personal Finance, 21 (1), 51-61. ESTRADA, J. (2021). The Sustainability of (global) withdrawal strategies. Journal of Financial Planning, 34 (11), 82-98. ESTRADA, J. (2021). Sequence risk. Is it really a big deal? Journal of Investing, 30 (6), 47-69. doi:10.3905/joi.2021.1.193. ESTRADA, J. (2020). Factor tilts and asset allocation. Journal of Investment Consulting, 20 (1), 30-39.

Working Papers

ESTRADA, J., KRITZMAN, M. (2018). Toward Determining the Optimal Investment Strategy for Retirement (WP-1213-E). ESTRADA, J. (2003). Mean-semivariance behavior (II): The D-CAPM (DI-493-E). ESTRADA, J. (2003). The cost of equity of Internet stocks: A downside risk approach (DI-491-E). ESTRADA, J. (2003). Mean-semivariance behavior: An alternative behavioral model (DI-492-E).

Articles in other publications

ESTRADA, J. (2017). Un método para asignar activos. Estrategias de inversión. Revista de Antiguos Alumnos (147), pp. 24 - 27. ESTRADA, J. (2017). An Approach for Asset Allocation. Investment Strategies. Alumni Magazine (147), pp. 20 - 23. ESTRADA, J. (2015). The Retirement Glidepath: A Vote for Static Allocations. Investment Risk and Performance, 1 (1), pp. 1 - 4. ESTRADA, J. (2015). Valuation's Usefulness for Forecasting and Setting Asset Allocation. American Association of Individual Investors Journal, 37 (7), pp. 29 - 36. ESTRADA, J. (2015). Target-Date Funds: The Good, the Bad, and the Ugly. The European Financial Review, pp. 54 - 57.

Books

ESTRADA, J. (2011). Understanding Finance. A No-Nonsense Companion to Financial Tools and Techniques. Harlow, England: Prentice Hall. ESTRADA, J. (2010). The Essential Financial Toolkit. Everything You Always Wanted to Know About Finance But Were Afraid to Ask. Basingstoke [England]: Palgrave Macmillan. ESTRADA, J. (2005). Finance in a Nutshell. A no-nonsense companion to the tools and techniques of finance. Harlow, England: Prentice Hall.

Book Chapters

ESTRADA, J. (2017). Prólogo. En John C. Bogle (Ed.), Cómo invertir en fondos de inversión con sentido común: Nuevos imperativos para el inversor inteligente (pp. 16 - 19). Barcelona: Deusto. GRABOWSKI, R., ET AL. (2015). Strengths and Weaknesses of Commonly Used Models. In Roger Grabowski, James Harrington, Carla Nunes (Eds.), 2015 International Valuation Handbook: Guide to the Cost of Capital (pp. 1 - 13). Chichester: John Wiley & Sons. ESTRADA, J. (2009). Investing in a volatile environment: A black swan perspective. In Conrad Gardner (Ed.), QFinance. The ultimate resource (pp. 312 - 313). Bloomsbury, USA: Bloomsbury Publishing. ESTRADA, J. (1996). Insider trading: Regulation, Securities Markets, and Welfare Under Risk Aversion. In D. Heremans, H. Cousy (Eds.), Essays in Law and Economics III. Financial Markets and Insurance. Selected proceedings of the 11th annual conference of the European Association of Law and Economics (EALE), Leuven, September 1-3, 1994 (pp. 73 - 109). Antwerpen: Maklu.

Cases

ESTRADA J., J. (2022). Dividend Policy - Four Decisions. IESE, F-989-E. ESTRADA J., J. (2021). Garmin - Finding an Optimal Capital Structure. IESE, F-977-E. ESTRADA J., J. (2021). Garmin - Optimizando la estructura del capital. IESE, F-977. ESTRADA, J. (2021). Stealth Sports. IESE, F-976. ESTRADA, J. (2021). Stealth Sports. IESE, F-976-E.

Technical Notes

ESTRADA, J. (2024). The expected return of bonds. IESE, FN-654-E. ESTRADA, J. (2020). The Arithmetic of Active Management: An Example. IESE, FN-643-E. ESTRADA, J. (2018). Modern Portfolio Theory: Essential Concepts and Messages. IESE, FN-640-E. ESTRADA, J. (2013). Beta, apalancamiento, y coste del capital. IESE, FN-616. ESTRADA, J. (2013). Beta, Leverage, and the Cost of Capital. IESE, FN-616-E.