Michael J. Oyster, CFA, CAIA

Personal Details

Bio

Michael J. Oyster, CFA, CAIA is an investment strategist, researcher and author. He is the creator of the Premium Returns Strategies and the Options Incomes Index. With a BBA from University of Cincinnati's Lindner's College of Business Administration in hand, he began his professional investment career in 1994 with options advisory firm Schaeffer’s Investment Research. As their Senior Quantitative Analyst, he conducted detailed analysis of options and volatility metrics while managing product offerings including an S&P 500 Index options spread strategy.

Upon joining FEG in 1999, Michael began researching traditional, hedge fund and options-based investment strategies as well as conducting and publishing independent research. As their Chief Investment Strategist and a prior managing principal, he served as a thought leader on capital markets and was a frequent speaker and moderator regarding markets, strategies and the economy specializing in macroeconomic analysis, investment philosophy and asset allocation. During his time at FEG, Michael developed, enhanced, and published a variety of different concepts including a ground-breaking technique that refines the sub-asset allocation decision-making process by pairing valuation with momentum. As a member of FEG’s Investment Policy Committee (IPC), he helped guide firm-wide investment philosophy, education, and manager research.

His first book, Mission Possible: Achieving Outperformance in a Low Return World, was published by Dearborn Trade in 2005. His latest book, Success in a Low-Return World: Using Risk Management and Behavioral Finance to Achieve Market Outperformance, has just been published by Palgrave Macmillan this November (2018) and is available as an eBook or in hard cover.

Michael was twice commissioned by the Chicago Board Options Exchange (Cboe) to conduct research on and provide summary analysis regarding suites of their proprietary options indexes. Additionally, his work with Cboe has included being a moderator multiple times at their conferences.

Back home in Cincinnati, Michael serves as a board member on the Freestore Foodbank Foundation and on the Lincoln W. Pavey Educational Foundation.

Sample Presentations:

- Cboe Risk Management Conference, March, 2018, moderator: “Applying Options/Volatility Strategies Within Institutional Portfolios”

- National Society of Institutional Investment Professionals 2017 Summit, November, 2017: “Derivatives Strategies and Portfolio Hedging”

- Council on Foundations Annual Investment Conference, October, 2017, moderator: “Active vs. Passive Equity Investing”

- FEG Investment Forum, August, 2017 – Main stage, keynote presentation, “The Carousel of Economic and Market Cyclicality”

- Comerica National Investment Conference, “Investment Philosophy and Market Update”

Current position (1)

Investment Strategist

Independent

Degrees (1)

Finance

University of Cincinnati

1988 to 1993

Presentations

Presentations (1)

Investment Success and Achieving Outperformance in a Low Return World

Strong forces combined to spark one of the greatest bull markets in history over the decade following the Great Financial Crisis. Now with P/E multiples elevated and interest rates no longer falling, some important tailwinds have been removed such that the U.S. stock market may fail to match even long-term averages. For goals to be met, market outperformance may be necessary, but traditional stock pickers and "closet indexers" have not been up to the task. Passive investing is a viable solution but won't make up the shortfall. Opportunities to outperform exist for those who know where to find them. Smart beta is cyclical but can add value, as can private equity, but manager selection is critical. Burgeoning solutions in options-based strategies can provide outperformance such as the monetization of the volatility risk premium through buy-write and collateralized put selling. Finally portable alpha, if implemented prudently, has the potential to make up the shortfall.

Workshops (4)

Cboe Risk Management

1 hour

Moderator for "Applying Options/Volatility Strategies within Institutional Portfolios." Moderated a select panel of options and volatility experts including asset owners and investment managers to discuss how unique derivatives-based strategies can enhance the performance of institutional portfolios. The panel discussed common misperceptions of such strategies and the unfortunate lumping of volatility strategies into a common classification though vast differences exist among them. The panel surmised that greater adoption of many viable volatility-based strategies will be seen in coming years as investors look for ways to make up the shortfall resulting from lower stock market returns.

National Society of Institutional Investment Professionals 2017 Summit

1 hour

Institutional investors frequently consider whether a derivatives hedging program, that could limit stock market losses to a pre-determined level, could improve their portfolios. In most cases the potential benefits of such a program do not justify their cost. Certain derivatives-based strategies, such as buy-write and collateralized put selling, offer the potential to add value to investment portfolios.

Council on Foundations Annual Investment Conference

1 hour

Moderator: "Active versus Passive Equity Investing"

The Carousel of Economic and Market Cyclicality

1 hour

Main stage keynote presenter. A myriad of forces affect the capital markets. This presentation looked at current and future developments in four broad categories: political, economic, social and technological. The presentation introduced how these four have and will continue to influence the markets. The rise of populism and nationalism can inhibit trade and immigration, which can constrain economic growth. The US Federal Reserve, moving from a highly accommodating stance to less, may drag on stock market performance. The demographic influence of baby boomers moving from key economic contributors now into retirement will almost certainly affect capital markets and technological disruptions are not just keeping a lid on inflation but also stand to alter the labor markets in meaningful ways in years to come.

Past talks (2)

Success in a Low-Return World: Using Risk Management and Behavioral Finance to Achieve Market Outperformance

CFA Luncheon

Cincinnati, OH

January 24, 2019

Success in a Low-Return World: Using Risk Management and Behavioral Finance to Achieve Market Outperformance

iHeartRADIO

55KRC Radio Cincinnati, OH

January 25, 2019