Posts Tagged ‘ due diligence ’
SOS
Jul 1st, 2019 | Filed under: Newly Added, What about beta?, Retail Investing, Institutional Investing, Asset allocation, Asset Allocation Models, Alternative Investments in Context, Institutional Asset Management, Allocating to A.I., Other Topics in A.I.By Bill Kelly, CEO, CAIA Association Ask someone of a certain generation to name the most common worldwide distress signal, and they will likely come back with SOS. No surprise then that this same signal, borne from the Morse code, turns 111 years old on this date in history. MostRead More
Due Diligence Requires Deep Dives into Data
Nov 7th, 2017 | Filed under: Newly Added, Due Diligence Process, Risk Metrics and Measurement, Private Investments, Risk Management & Operations
The data and analysis provider eVestment has issued a new white paper on “enhancing private equity manager selection with deeper data.” PE funds below the top quartile have not materially outperformed the public markets as a matter of history. So for an institutional investor, earning alpha is in large measureRead More
Lazard Research on Smart Beta
Nov 5th, 2017 | Filed under: Newly Added, Due Diligence Process, Financial Economics Theory, Behavioral finance, Smart Beta, Risk Management & Operations, Finance & Economics, Other Topics in A.I.Jason Williams, senior vice president at Lazard Asset Management, has written a white paper on the “six sins of smart beta.” First: what is smart beta? Academic studies indicate anomalies in the markets that somehow don’t get arbitraged away. These become identified as “factors” and indexes can be designed soRead More
AIMA’s New Due Diligence Template
Oct 22nd, 2017 | Filed under: Newly Added, Service Providers, Due Diligence Process, Technology, Operations, Partner accounting, Risk Management & OperationsIt has been 20 years since the Alternative Investment Management Association published its first due diligence questionnaire, a template designed to standardize the diligence process by which investors decide if a particular management is right for them. Now it has published a new questionnaire/template, covering a broader range of entities/strategies.Read More
Til and Heckinger on Commodity Debacles, Part II
Aug 6th, 2017 | Filed under: Newly Added, Due Diligence Process, Personalities in AI, Risk Management & OperationsA new paper available at SSRN looks at two infamous commodity industry melt-downs: Amaranth and MF Global. It offers a diagnosis of each. The paper is co-authored by Hilary Till, of EDHEC – Risk, and Richard Heckinger, of the Working Group on Financial Markets, Federal Reserve Bank of Chicago. InRead More
When an allocator calls: Best Practices for a CTA’s back office
Mar 9th, 2016 | Filed under: Newly Added, CTA, The A.I. Industry, Investing in Commodities, Hedge Funds, Commodities, Macro and Managed Futures FundsBy Dana Comolli, president, DMAXX LLC Every trader who has tried to raise money knows the drill from investors: yes we want to know about your performance, but also, explain in detail your back office (infrastructure, organization). Most allocators come with pages of checklists and expect the manager to beRead More
AIMA’s Guide to the Bamboo Bridge of Operations
Feb 15th, 2016 | Filed under: Newly Added, The A.I. Industry, Due Diligence Process, Regulatory Environment, Operations, Risk Management Strategies & Processes, Risk Management & OperationsHow sturdy can a bamboo bridge be? The front page of a new Guide from The Alternative Investment Management Association consists of a photo of a bamboo bridge, apparently on a beach, as seen from below. That is, this is the view of someone on whom the bridge would fall,Read More
Delaware’s Supreme Court Upholds Smack-down of RBC
Dec 8th, 2015 | Filed under: Newly Added, Due Diligence Process, Risk Management & OperationsSome of the reasoning of the courts seems a bit circular to a layperson. Still, the gist is clear enough. Shareholders were cheated when Rural Metro was sold at a price well below its fair market value, and RBC has both the liability and the deep pockets necessary to make that right. Read More
Due Diligence Idea: Reverse Stultification and Bloat
Nov 5th, 2015 | Filed under: Due Diligence Process, Risk Management & OperationsNo one likes those bloated questionnaires. Perhaps twenty-five out of 300 questions are both relevant and important. So, to get better results, customize and re-focus the questions. Read More