Browsing: alternative investments

Posts Tagged ‘ alternative investments ’

Some Clarity from the Delaware Supreme Court for Activists

Oct 18th, 2018 | Filed under: Equity Hedge Funds, Event-Driven Hedge Funds, Hedge Fund Strategies, Hedge Funds, Legislation/Court rulings, Newly Added, Regulatory, Regulatory Environment, The A.I. Industry

The Delaware Supreme Court, on Oct. 9, upheld the Chancery Court’s dismissal of a buyout/squeeze-out related lawsuit. In the process, it issued an opinion that indicates that the room for activist investors to use litigation or the threat of litigation to derail controlling shareholder transactions may be quite small, andRead More


A Brief History of Asset Allocation

Oct 16th, 2018 | Filed under: Algorithmic and high-frequency trading, Business News, CAPM / Alpha Theory, Crowdfunding, Emerging Alternative Investments, Finance & Economics, Financial Economics Theory, Hedge Fund Strategies, Hedge Funds, Newly Added, Other Topics in A.I., Risk management, Risk Management Strategies & Processes, Risk Metrics and Measurement, The A.I. Industry

Glassbridge has put out an ambitious white paper about the “evolution of asset allocation across the investment management industry,” one that begins with the basics of the Capital Asset Pricing Model and ends with quantitative analysis and crowdsourcing. The premise is that new strategies, and new ranges of data, areRead More


National Market System: What to End; What to Mend

Oct 14th, 2018 | Filed under: Algorithmic and high-frequency trading, Business News, Commodities, Newly Added, Regulatory, Regulatory Environment, The A.I. Industry

The Principal Traders Group of the Futures Industry Association (FIA PTG) recently offered its thoughts on market structure, outlining one direction of reform for the Securities and Exchange Commission’s Reg NMS. Reg NMS (National Market System) was promulgated in 2005, in order to ensure competition among markets, and in theRead More


Hedge Funds in the Slow-down Phase

Oct 9th, 2018 | Filed under: Equity Hedge Funds, Event-Driven Hedge Funds, Hedge Fund Strategies, Hedge Funds, Macro and Managed Futures Funds, Newly Added, Relative Value Hedge Funds, The A.I. Industry

Fidante Partners, part of the Challenger Limited Group, has issued a white paper on the performance of hedge funds of various strategies in the slowdown and recession phases of a business cycle. The report, written by Joachim Klement, Fidente’s head of investment research, posits that the world is now inRead More


Self-Organizing Maps for Selecting Hedge Funds

Oct 9th, 2018 | Filed under: Allocating to A.I., Asset allocation, Asset Allocation Models, Benchmarking & Performance Attribution, Hedge Fund Strategies, Hedge Funds, Newly Added, Performance, Analytics & Metrics, Risk Management Strategies & Processes, The A.I. Industry

A new paper by Claus Huber, of Rodex Risk Advisers, looks at machine learning for risk analysis, working especially from the “self-organizing maps” associated with Finnish Professor Teuvo Kohonen. A SOM is a low-dimensional representation of input space (thinking of it as two dimensional makes the “map” analogy intuitive, andRead More


Tiptoe Thru’ the Cryptos With Yale

Oct 9th, 2018 | Filed under: Digital currencies, Emerging Alternative Investments, Endowments & Foundations, Institutional Asset Management, Institutional Investing, Newly Added, Other Topics in A.I., What about beta?

By Bill Kelly, CEO, CAIA Association Fifty years ago, Tiny Tim, the ukulele-wielding father of falsetto, released his self-aggrandizing album entitled God Bless Tiny Tim. Love it or hate it, those of a certain generation will never forget Track 2 entitled “Tiptoe Thru’ The Tulips With Me.” In the modernRead More


Goldman Sachs Equity Hedge Fund Report Deep Dives 13Fs

Oct 7th, 2018 | Filed under: Alpha Strategies, Equity Hedge Funds, Hedge Fund Industry Trends, Hedge Fund Strategies, Hedge Funds, Newly Added, Risk management, Risk Management Strategies & Processes, Structure of the Hedge Funds Industry, The A.I. Industry

Working from a database drawn from 13F filings, authors of a new report from Goldman Sachs Asset Management maintain: (1) hedge funds tend to overweight equities in three markets: information technology, consumer discretionary, healthcare; (2) quarter-on-quarter turnover for equity hedge funds’ portfolios is limited; and (3) a long-only sample portfolioRead More


Peeling the Onion of Equity Hedge Fund Alpha

Oct 4th, 2018 | Filed under: CAPM / Alpha Theory, Equity Hedge Funds, Finance & Economics, Financial Economics Theory, Hedge Fund Strategies, Hedge Funds, Newly Added, The A.I. Industry

The founder of CEO of MSR Indices, a Parsippany, N.J.-based index-investors consultancy, has authored a white paper on target volatility, also known as intertemporal risk parity. The gist of the paper is that: (1) equity hedge funds do secure alpha for their investors, obvious if one measures their performance againstRead More


Substance Over Form

Oct 1st, 2018 | Filed under: Alternative Investments in Context, Investor Relations, Newly Added, Sales & Marketing in the AI Industry

By Diane Harrison In the final months of 2018, a mid-term election year here in the U.S., rhetoric is forming and tempers are soaring as candidates try to create narratives that suit their political objectives. It calls to mind the phrase “form over substance,” where what is said often bearsRead More


Modi Operandi

Oct 1st, 2018 | Filed under: Emerging markets, Frontier markets, Macroeconomics, Newly Added, The A.I. Industry, The Global Economy & Currencies, What about beta?

By Bill Kelly, CEO, CAIA Association What’s your liquidity M.O.? If you are less than certain, it is time to look east toward the country of India and the land of Modi. After all, when 1.3 billion people cough there is a decent chance the rest of the world justRead More


European Hedge Funds and their Prime Brokers

Sep 30th, 2018 | Filed under: Equity Hedge Funds, Hedge Fund Industry Trends, Hedge Fund Strategies, Hedge Funds, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

A recent article by three Deloitte risk advisory executives looked at what European hedge fund managers value most in their prime brokers. The short answer: counterparty strength; good working relationships; competitiveness of fees; and the performance of core PB roles at a high level. Let’s drill down a bit intoRead More


Cryptocurrency Arbitrage: Two Looks

Sep 27th, 2018 | Filed under: Currencies, Digital currencies, Emerging Alternative Investments, Finance & Economics, Newly Added, Other Topics in A.I., The A.I. Industry, The Global Economy & Currencies

Do investors arbitrage cryptocurrencies? Two recent studies offer a “yes” answer, though they in certain other respects differ significantly in their conclusions. Specifically, one study shows that in one respect arbitrage has done its duty and effectively eliminated the opportunities for arb profits, enforcing efficiency. In other situations, though, theRead More


Intralinks/Global Fund Media Survey of LPs Shows Satisfaction

Sep 25th, 2018 | Filed under: Allocating to A.I., Debt Types of Private Equity, Endowments & Foundations, Equity Types of Private Equity, Family Offices, Hedge Funds, High-net-worth investors, Institutional Asset Management, Institutional Investing, Liquid and Fixed Income Real Estate, Newly Added, Other Issues in Private Investments, Private Equity, Private Investments, Real Assets, Real Estate, Real Estate Equity Investments, The A.I. Industry

Intralinks has once again collaborated with Global Fund Media in a survey of limited partners on their satisfaction with recent results and on how they see global investment opportunities near-term. As to satisfaction: 18% of LPs say that their results from alternative investments have been better than they expected. ARead More


The View from Las Vegas: Quiet Buying? Aggressive Buying?

Sep 23rd, 2018 | Filed under: Alternative Investments in Context, Commodities, Commodities: Examples, Digital currencies, Emerging Alternative Investments, Emerging markets, Gold, Newly Added, Personalities in AI, The A.I. Industry

On Sept. 24, the 9th Annual Inside Alternatives and Asset Allocation event convenes at Wynn Las Vegas, with CAIA sponsorship. The purpose of the event: to look beyond traditional alternative investments and strategies, to take the measure of a new breed of alternatives, including impact/SRIs, cryptocurrencies, and the application ofRead More


10 Years Later: Glasner Looks Back at the GFC

Sep 20th, 2018 | Filed under: Equity Hedge Funds, Finance & Economics, Hedge Funds, Macroeconomics, Newly Added, The A.I. Industry, The Global Economy & Currencies

David Glasner, an economist with the Federal Trade Commission, in a new Mercatus Research Paper, offers what he calls a “deeper explanation of the financial crisis of 2008 and the subsequent recovery.” Deeper than what? Deeper than attributing the bust to the bursting of the housing price bubble. Glasner’s newRead More


Prepping for an Emerging Market Rebound

Sep 17th, 2018 | Filed under: Currencies, Emerging markets, Finance & Economics, Newly Added, The A.I. Industry, The Global Economy & Currencies

Two executives at the Neuberger Berman Group have prepared a paper on what they call the “overall case for a recovery in emerging market debts” in the months to come. Investors will want to “be around” for such a rebound, they say. There are obviously now, and there will continueRead More


Are ICOs Encoding Their Governance Promises?

Sep 16th, 2018 | Filed under: Currencies, Digital currencies, Emerging Alternative Investments, Finance & Economics, Newly Added, Other Topics in A.I., The A.I. Industry, The Global Economy & Currencies

Scholars affiliated with the University of Pennsylvania recently produced a paper about digital currencies and initial coin offerings, “Coin Operated Capitalism.” The gist of the paper is that the purchase of such tokens may be riskier than investors have thus far been led to expect and may entail more risk thanRead More


Oil Trading and Round Number Effects

Sep 13th, 2018 | Filed under: Behavioral finance, Commodities, Commodities: Examples, Finance & Economics, Financial Economics Theory, Investing in Commodities, Newly Added, oil, The A.I. Industry

The “round number effect” is an endless source of fascination in the worlds of both trading and statistics. Human brains, after all, tend to think in round numbers. A market pundit on television may say, “If the price of stock XYZ gets below $8.00, it’ll be worth buying.” He won’tRead More


The Connection between Audit Fees and Derivative Hedging

Sep 11th, 2018 | Filed under: Commodities, Commodities: Examples, Hedge Fund Operations and Risk Management, Newly Added, oil, Risk management, Risk Management Strategies & Processes, The A.I. Industry

It is generally acknowledged that there exists a positive association between business risk and audit fees. There is room for dispute as to what that means. On the one hand, the riskier clients for whom an audit firm works might simply be the ones that have the most complicated books,Read More


McKinsey Study: Where are the women in financial services?

Sep 9th, 2018 | Filed under: Industry Size & Managers, Institutional Asset Management, Newly Added, The A.I. Industry

A new report from McKinsey looks at the women in the financial services industry in North America, in the expectation that the findings will be pertinent even beyond the expanses of North America, that the insights and implications will “have global relevance.” The research is part of a collaborative effortRead More


Back to the 1980s for future market insights

Sep 6th, 2018 | Filed under: Business News, Economics, Finance & Economics, Newly Added, Other Topics in A.I., The A.I. Industry

Christina Zhu, of the University of Pennsylvania, in a recent paper, looks at the consequences of Big Data for corporate management. What “Big Data” means depends on who is talking or writing about it. For economists working within the classic microeconomic framework, it means a drastic fall in the cost of acquiring information.Read More


Pitchbook 2018 Report: Where are the unicorns?

Sep 4th, 2018 | Filed under: Angel investing, Debt Types of Private Equity, Industry Size & Managers, Newly Added, Other Issues in Private Investments, Private Equity, Private Investments, The A.I. Industry, Venture capital

PitchBook has posted its 2018 VC Unicorn Report. The introduction explains the meaning of the term. (It has only been in use in its financial sense since 2013, so explanations may still be deemed necessary.) “Unicorn” refers to an entity upon which the private investment markets have bestowed a valuationRead More


The Raining Credentials  

Sep 4th, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CAIA Association CEO Missions, and the statements that embody them, are typically concise, focused, and executable around some type of formulated plan. Most missions are perpetual, and it’s rare that you will Google any business website and be greeted with the words “mission accomplished.” As many ofRead More


HBS looks at 40 years of private equity performance

Sep 3rd, 2018 | Filed under: Debt Types of Private Equity, Equity Types of Private Equity, Newly Added, Other Issues in Private Investments, Private Equity, Private Investments, The A.I. Industry, Venture capital

In a new study by Harvard Business School scholars looks into the performance of LPs invested with private equity over four decades. In the paper, Investing Outside the Box, the scholars found that it is generally better to invest inside the box. Specifically, they found that the performance of alternativeRead More


Cryptocurrencies: Alpha and Malta

Aug 30th, 2018 | Filed under: Currencies, Digital currencies, Newly Added, Other Topics in A.I., The A.I. Industry, The Global Economy & Currencies

Malta was the first jurisdiction within the EU to develop a regulatory system for collective investment schemes that invest in cryptocurrencies. A new paper offering what it calls a “top-down analysis” of hedge funds involved with cryptos details the regulatory framework now in force in Malta, highlighting the set-up andRead More


Inaccurate News Analytics: When Robots Get Things Wrong

Aug 28th, 2018 | Filed under: Algorithmic and high-frequency trading, Business News, Equity Hedge Funds, Event-Driven Hedge Funds, Hedge Funds, Newly Added, The A.I. Industry

A new study prepared for the Federal Reserve Board looks at the use of algorithms to read and interpret financial news. While there have been a lot of studies that have looked at this topic, one unique feature of this new paper, “First to ‘Read’ the News,” is that itRead More


Kurtosis Diagnosis: Don’t get Skewed!

Aug 20th, 2018 | Filed under: Newly Added, Risk management, Risk Management Strategies & Processes, Risk Metrics and Measurement, The A.I. Industry, What about beta?

By Bill Kelly, CEO, CAIA Association The quote “what gets measured gets managed” is oft-times attributed to the author and consultant Peter Drucker. The origin is less significant than its modern-day meaning and, while it is most often used in the context of business management, it ports quite well into the management ofRead More


Eurekahedge: Hedge Funds Trailing Behind Last Year’s Performance

Aug 19th, 2018 | Filed under: CTA, Equity Hedge Funds, Event-Driven Hedge Funds, Hedge Fund Industry Trends, Hedge Fund Strategies, Hedge Funds, Industry Size & Managers, Macro and Managed Futures Funds, Newly Added, Relative Value Hedge Funds, The A.I. Industry

According to Eurekahedge, with the July numbers on hedge fund performance now available, 8.5% of hedge fund managers have posted double-digit gains in 2018 to date. Most of that gain is focused on those with a long/short equities mandate. That number is quite low. Eurekahedge contrasts it with the firstRead More


Liquidity: The Taxi-onomy of Supply and Demand 

Aug 13th, 2018 | Filed under: Macroeconomics, Newly Added, The Global Economy & Currencies, What about beta?

By Bill Kelly, CEO, CAIA Association The CAIA Association has partnered with AIMA to develop a series of educational papers designed to equip trustees and other fiduciaries with the proper tools to assist them in their risk oversight responsibilities. The third installment covered the use and deployment of leverage in alternative funds and we are now putting theRead More


Central banks: Hedge fund friend or foe?

Aug 12th, 2018 | Filed under: Equity Hedge Funds, Hedge Funds, Newly Added, Relative Value Hedge Funds, The A.I. Industry

Are central bankers friends or foes of hedge funds and other seekers of alpha? In particular, what is the answer to this friend-or-foe question for the period since the global financial crisis a decade ago, where the central bankers with whom we are especially concerned are those at the USRead More


New SEC Commissioner Dissents on a Bitcoin ETF

Aug 9th, 2018 | Filed under: Commodities, Crowdfunding, Emerging Alternative Investments, Newly Added, Other Topics in A.I., Regulatory, Regulatory Environment, The A.I. Industry

The U.S. Securities and Exchange Commission recently (on July 26) disapproved of proposed rules changes that would have greenlit listing of the Winklevoss Bitcoin Trust on the Bats BZX Exchange.  In essence, the SEC has now rejected the listing of a Bitcoin exchange-traded product (ETP) on a national exchange. TheRead More


What is Behind the Momentum Factor? Informed Trades?

Aug 5th, 2018 | Filed under: CAPM / Alpha Theory, Finance & Economics, Financial Economics Theory, Newly Added

A new paper by four U.S. scholars makes a contribution to the literature on factors and the modeling of stock prices. The paper, “An Information Factor,” proposes in essence that the momentum factor isn’t what it seems to be. Ever since the publication of a 1993 paper by Jegadeesh andRead More


The Structure of the Securities Lending Market

Aug 2nd, 2018 | Filed under: Behavioral finance, Finance & Economics, Financial Economics Theory, Macroeconomics, Newly Added, The Global Economy & Currencies

An author affiliated with the National University of Singapore and one with Goethe University Frankfurt, Germany, have co-authored a paper on the structure of the securities lending market: specifically, on the fact that this market is an oligopoly, and on the implications that has for pricing. The general outlines areRead More


Private (In)equity 

Jul 30th, 2018 | Filed under: Equity Types of Private Equity, Newly Added, Private Equity, Private Investments, The A.I. Industry, What about beta?

By Bill Kelly Private equity is quite simply capital not listed on a public exchange (props to Investopedia). This is certainly an apt description but as this asset class moves toward greater maturity, corresponding levels of responsibility and transparency must be ramped up too. Uninvested capital has reached dizzying heights which can only mean (on average) higher entry multiples, downward pressure on returns, lessRead More


Believe Your Eyes!

Jul 18th, 2018 | Filed under: Investor Relations, Newly Added, Other Topics in A.I., Sales & Marketing in the AI Industry

By Diane Harrison It’s simple human nature to believe more of what you see than what you hear. The human brain is wired to process visual information more easily than contextual words. According to a June 15 Washington Post article, “Charts Change Hearts And Minds Better Than Words Do,” chartsRead More


Chain Blockers

Jul 16th, 2018 | Filed under: Digital currencies, Emerging Alternative Investments, Newly Added, Other Topics in A.I., What about beta?

By Bill Kelly, CEO, CAIA Association The base case for distributed ledger technology (or DLT, and often used interchangeably with blockchain) is to create a trusted network of participants where there is just one ledger of account records shared by all and there is no central recordkeeper. Transactions are digitalRead More


Neural Networks and EPS Prediction

Jul 12th, 2018 | Filed under: Newly Added, Other Topics in A.I., Risk Management & Operations, Risk Management Strategies & Processes, Technology

Yes, it sounds a bit like the phrase “jumbo shrimp,” in terms of sense, but a “long short-term memory neural network” is an important recent advance in artificial intelligence research. The term refers to a neural network devised with “forget gates” attached to cells of memory, originally in order toRead More


Justice Anthony Kennedy and Securities Law

Jul 10th, 2018 | Filed under: Legislation/Court rulings, Newly Added, Regulatory, Regulatory Environment, The A.I. Industry

When Justice Kennedy announced that he is stepping down from the US Supreme Court, the profiles of his time on that bench said a good deal about abortion, homosexual rights, and other hot-button issues, but relatively little about Kennedy’s contribution to securities law. Yet it is worth remembering that heRead More


Asset Management in China: Expect Growth

Jul 8th, 2018 | Filed under: Asset Allocation Models, Consultants, Finance & Economics, High-net-worth investors, Institutional Asset Management, Institutional Investing, Newly Added, What about beta?

A new study by Casey Quirk looks at asset management in China. It makes a bold claim: that by 2030, asset management strategies broadly defined will account for 10% of total Chinese wealth. That will be a more than doubling of the corresponding number at present: 4%. If China getsRead More


Ben Graham Conference at Fordham: Value Very Much Alive

Jul 2nd, 2018 | Filed under: Alternative Investments in Context, Newly Added, Risk Management & Operations, The A.I. Industry

The fifth Ben Graham Annual Conference, the marquee event of the CFA Society New York, took place as scheduled on June 27, at Fordham University, Lincoln Center. As its name suggests, this conference is intended to promote, and to share ideas about the application of, the investment principles of BenjaminRead More


Huge Data 

Jul 2nd, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CAIA Association CEO How many billionaires would you need to accumulate one quintillion dollars of net worth? If your last name is Trump you might say just one, but the non-fake news answer is a cool one billion billionaires. Whether you are dealing in alternative facts or not, this is a massive number that carries 18 zeros to the left ofRead More


Pension Funds, ‘Tilt,’ and Underperformance

Jul 1st, 2018 | Filed under: Allocating to A.I., Benchmarking & Performance Attribution, Institutional Asset Management, Institutional Investing, Newly Added, Performance, Analytics & Metrics

Christina Atanasova and Gilles Chemla have posted a discussion of pension plans,where holdings show a tilt toward private equity and real estate investments. Atanasova is associate professor of finance, Beedie School of Business,  Simon Fraser University in Burnaby, BC, Canada.  Chemia is professor of financial at Imperial College Business School, London,Read More


Stein’s Law and Rising Production Costs

Jun 26th, 2018 | Filed under: Business News, Commodities, Commodities, Insolvency, Investing in Commodities, Newly Added

Herbert Stein, who was President Richard Nixon’s chairman of the Counsel of Economic Advisors, is often quoted as saying, “If something cannot go on forever, it will stop.” This statement, known as “Stein’s Law,” has the right ring of profundity about it, a mixture of tautology and empirically verifiable generalization.Read More


A Talk on the What and Whys of Cryptocurrencies

Jun 20th, 2018 | Filed under: Currencies, Digital currencies, Emerging Alternative Investments, Finance & Economics, Newly Added, Other Topics in A.I., The Global Economy & Currencies

The Battle of the Quants came to New York City on Wednesday, June 20, and the CAIA Association was one of its media sponsors. Much of the event involved cryptocurrencies, including an exchange between John D’Agostino (the global head of investor engagement at DMS Governance) and Nouriel Roubini, Chairman ofRead More


FORE! 

Jun 18th, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CEO, CAIA Association Certain words in the world of sports are universally recognized and understood, even for those who have never kicked a football or swung a golf club. The 2018 FIFA World Cup Matches began this weekend and not many of us will need a definition for GOOOAAALLL. Similarly, the annual US Open Golf Championship wrappedRead More


Africa Still Rising (but Patience May Be Required)

Jun 12th, 2018 | Filed under: Emerging Alternative Investments, Emerging markets, High-net-worth investors, Newly Added, Other Topics in A.I., Private Equity, Private Investments, The Global Economy & Currencies

The Emerging Markets Private Equity Association, in a new report, suggests that the “Africa Rising” narrative of a few years ago is behind us. Africa is seen still as having enormous potential. But the report also says, “the commodity downturn of the last several years has had a severe impactRead More


Alternative Uses of the Fixed-Income Markets

Jun 7th, 2018 | Filed under: Allocating to A.I., Institutional Asset Management, Institutional Investing, Newly Added

Aviva Investors has prepared a research report on absolute return fixed income. The report, called “Building Resilience into Portfolios,” explains that the traditional use of fixed income in a portfolio is quite straightforward. That use generally involves a long position on debt of various sorts (sovereign, corporate, developed or emergingRead More


Be Fearful When Everyone is Greedy

Apr 5th, 2018 | Filed under: Allocating to A.I., Alternative Investments in Context, Institutional Asset Management, Newly Added, The A.I. Industry

A new report from Context Capital Partners looks into trends in the alternative investments industry, both among institutions and family offices. It finds continued strong demand for alt investments, as well as a rising demand within the alt world for such emerging strategies as cryptocurrency investments and environmental, social, andRead More


Institutional Investors Wary of Passivity

Mar 1st, 2018 | Filed under: Allocating to A.I., Alpha & Beta, Institutional Asset Management, Newly Added, Other Topics in A.I., SRI and Clean Energy

Natixis’ Center for Investor Insight surveyed 500 institutional investors in the fall of 2017 about long-term objectives, short-term opportunities, and the concomitant pressures. In a new paper, Natixis discusses the Center’s take-a-ways from this survey Geopolitical events are the most worrisome prospect on the minds of the decision makers atRead More


What Family Offices Want From Alternative Investment Managers

Feb 21st, 2018 | Filed under: Allocating to A.I., Family Offices, High-net-worth investors, Institutional Asset Management, Newly Added

By Diane Harrison Competition within the alternatives sector for family office investments is at an all-time high, as these investors get more comfortable with the range of assets available to them and their general understanding of alternatives rises. Fund managers want to win these wealthy investors over, but often findRead More