Browsing: The A.I. Industry

The A.I. Industry

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


D’oh!

Sep 17th, 2018 | Filed under: Newly Added, Regulatory Environment, Risk Management & Operations, What about beta?

Much has been written this week about the fall of the house of Lehman. Too big to fail became “someone has to” and the rest is history. The demise of Lehman has been one of the many sign posts that defined the GFC and now, ten years on, traditional and socialRead 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


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


Making Sense of Private Credit Funds

Aug 26th, 2018 | Filed under: Asset Managers, Debt Types of Private Equity, Industry Size & Managers, Newly Added, Private Equity, Private Investments, The A.I. Industry

A new study takes what is called a “first look” at the aggregate performance of private credit funds. Using data going back to 2004, the authors (two of whom are affiliated with Adams Street Partners) determine that private credit funds “have performed about as well, or better than, leveraged-loan, high-yield,Read More


Hedging or Trading? Why Italian Banks Use Derivatives

Aug 23rd, 2018 | Filed under: Commodities, Credit Derivatives, Derivatives, Economics, Hedge Funds, Institutional Asset Management, Newly Added, Risk management, Risk Management & Operations, Risk Management Strategies & Processes, The A.I. Industry, The Global Economy & Currencies

A recent report by the Bank of Italy looks at why the various banks of Italy use derivatives. Specifically, the central bank of that country wanted to know: is it a matter of hedging? Or is it a matter of keeping a proprietary book? Hedge fund managers and other pursuersRead More


Asia-Pacific Region Will Continue to Dominate M&A Activity in 2H2018

Aug 21st, 2018 | Filed under: Equity Hedge Funds, Event-Driven Hedge Funds, Hedge Funds, Newly Added, The A.I. Industry

Intralinks has issued its Deal Flow Predictor for mergers and acquisitions activity through the fourth quarter of 2018. This report doesn’t involve a crystal ball, nor the leak of inside information. Rather, Intralinks tracks early-stage M&A activity, the better to predict the volume of as-yet unmade announcements. The gist ofRead 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


Illuminating Gender Differences in Entrepreneurship

Aug 16th, 2018 | Filed under: Angel investing, Debt Types of Private Equity, Equity Types of Private Equity, Newly Added, Other Issues in Private Investments, Private Investments, The A.I. Industry, Venture capital

Illuminate Ventures, an early-stage high-tech VC firm, has posted a paper by its founder and managing partner, Cindy Padnos, on “gender differences in entrepreneurship.” The paper begins with the observation that nearly half of the Illuminate portfolio companies have a woman as a co-founder. This doesn’t mean of course thatRead More


Agtech Investment and the Future of Food

Aug 14th, 2018 | Filed under: Agriculture, Angel investing, Equity Types of Private Equity, Farmland, Natural Resources and Land, Newly Added, Private Equity, Private Investments, Real Assets, The A.I. Industry, Venture capital

Finistere Ventures, a venture capital firm that describes itself as in the business of helping “ambitious founders transform food and agriculture,” has teamed up with Pitchbook to produce a dataset that would enable “clear insights into financing activity and metrics in the agtech sector.” The result was the Agtech InvestmentRead 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


Hedge Funds Arms Race for Alpha

Aug 10th, 2018 | Filed under: Commodities, Consultants, Endowments & Foundations, Hedge Fund Strategies, Hedge Funds, Institutional Asset Management, Institutional Investing, Newly Added, The A.I. Industry

By Don Steinbrugge It is no secret that the vast majority of investors, including hedge funds managers, have underperformed market indices over time. However, some managers have distinguished themselves generating very strong risk adjusted returns. Outperforming an index requires an information advantage over what is broadly available in market.  ItRead 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


European Private Equity Activity Increases in Q218

Aug 7th, 2018 | Filed under: Equity Types of Private Equity, Industry Size & Managers, Newly Added, Private Equity, Private Investments, The A.I. Industry

Pitchbook has a new report out about private equity activity in Europe. It indicates that, despite a slow start to the year, PE deal activity picked up notably in the second quarter. Across the continent there were 804 deals 2Q with a total valuation of  €88.5 billion. Deals above the Read 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


BarclayHedge Numbers Show Cryptocurrency Dive

Jul 19th, 2018 | Filed under: Commodities, CTA, Currencies, Digital currencies, Emerging Alternative Investments, Macro and Managed Futures Funds, Newly Added, Other Topics in A.I., The A.I. Industry, The Global Economy & Currencies

BarclayHedge says that its flash estimate for the Barclay CTA Index shows a 0.05% loss in June, and a 2% loss year to date. More remarkably, the flash estimate shows a 16.23% drop in June and a 45.43% drop YTD for the CryptoCurrency Traders Index. The founder and president ofRead 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


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


Eurekahedge: 2018 YTD Growth Positive but Unimpressive

Jun 24th, 2018 | Filed under: CTA, Equity Hedge Funds, Event-Driven Hedge Funds, Hedge Fund Industry Trends, Hedge Fund Strategies, Hedge Funds, Indexes, Industry Size & Managers, Macro and Managed Futures Funds, Newly Added, Relative Value Hedge Funds, The A.I. Industry

The newest Eurekahedge report says that total hedge fund assets have grown by $26.4 billion in the year to date (through May). The gain is the result of inflow, not of positive performance. Assets flowing in to the industry’s coffers YTD equal $30 billion, and one gets the net growthRead More


Quants and Fundamentalists Unite!

May 31st, 2018 | Filed under: Algorithmic and high-frequency trading, Fees, Hedge Fund Industry Trends, Hedge Funds, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

By standard definition, a “quantitative” investing strategy is one that selects securities using customized models, often algorithm-driven and thus on the operational level independent of human judgment. Again working from standard definitions, a “fundamental” investing strategy involves an examination of whether the entity issuing a security (corporation, sovereign, or other)Read More


Closing the Gender Gap in Alternative Investments

May 29th, 2018 | Filed under: Asset Managers, Industry Size & Managers, Newly Added, Other Topics in A.I., The A.I. Industry

The Emerging Market Private Equity Association (EMPEA) has announced its first initiative aimed at closing the gender gap, which it calls its Gender Parity Acceleration Working Group. EMPEA has 300 member firms, including both general partners and limited parties, who are invested in more than 130 countries around the globeRead More


Thoughts on the European Regulation on Short Selling

May 3rd, 2018 | Filed under: Equity Hedge Funds, Hedge Fund Regulation, Hedge Funds, Newly Added, Regulatory, Regulatory Environment, The A.I. Industry

A new paper by Marco Dell’Erba and Giovanni Patti takes a look at a recent crisis involving the stock of the Monte dei Paschi di Siena (MPS), as a way of studying the pragmatics of the European Regulation on short selling (SSR). Dell’Urba is affiliated with the New York UniversityRead More


China-US Trade War and Other Worries

Apr 29th, 2018 | Filed under: Event-Driven Hedge Funds, Hedge Funds, Industry Size & Managers, Newly Added, The A.I. Industry

The Eurekahedge April 2018 report says that hedge funds were down in the first quarter of the year (-0.13%). This is the industry’s worst performance since Q1 2016. The steepest performance-based losses by regional mandate were those of the North American funds, they lost $1.2 billion. Meanwhile, asset inflows remainedRead More


What Constitutes Price Manipulation?

Apr 24th, 2018 | Filed under: Commodities, Commodities: Examples, Energy, Newly Added, Regulatory Environment, The A.I. Industry

The two commissions that serve as market enforcers in the United States, the Commodity Futures Exchange Commission and the Securities Exchange Commission, agree on a lot. (As, indeed, one would hope, since their work has considerable overlap.) One of the points on which the commissions have general agreement is theRead More


AIMA’s Vision Statement from Hedge Fund Industry Leaders

Apr 22nd, 2018 | Filed under: Alternative Investments in Context, Hedge Funds, Liquid Alternative Investiments, Newly Added, Other Topics in A.I., The A.I. Industry

Some of the leading figures in the alt investment industry have put their dignified heads together and created a vision statement, called “Perspectives: Industry Leaders on the Future of the Hedge Fund Industry.” The gist of the paper is that firms in the industry are quickly adapting to contemporary conditionsRead More


‘You Kick It’ and the Alternative Investment Industry

Apr 15th, 2018 | Filed under: Newly Added, Regulatory, Regulatory Environment, The A.I. Industry, UCITs

The Alternative Investment Management Association, the London-based organization representing the interests of the world’s alternative investment industry, has issued a new whitepaper about the impact of the exit of the United Kingdom from the European Union. This ongoing event, known popularly as Brexit, has occupied armies of reporters, planners, andRead 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


The Tipping Point for Alternative Data

Mar 11th, 2018 | Filed under: Industry Size & Managers, Investor Relations, Newly Added, Other Topics in A.I., Sales & Marketing in the AI Industry, The A.I. Industry

The Deloitte Center for Financial Services has put out a white paper on “Alternative data for investment decisions.” The term “alternative data” as Deloitte uses it refers to any set or sets of data that may be useful for investors but that is outside their traditional/conventional frame of reference.  InRead More


Preqin on the PE Outlook

Mar 8th, 2018 | Filed under: Equity Types of Private Equity, Newly Added, Private Equity, Private Investments, The A.I. Industry

Preqin has issued a report on the near term outlook for private equity based on a recent (November 2017) survey of more than 350 PE firms around the globe. Asked what is the biggest challenge facing them in the coming months, the most common response was: high company valuations. TheRead More


DB: Investors Newly Optimistic About Hedge Funds

Feb 22nd, 2018 | Filed under: Allocating to A.I., Asset allocation, Asset Allocation Models, Benchmarking & Performance Attribution, Fees, Hedge Fund Industry Trends, Hedge Funds, Industry Size & Managers, Institutional Asset Management, Institutional Investing, Newly Added, Performance, Analytics & Metrics, Structure of the Hedge Funds Industry, The A.I. Industry

Deustche Bank recently released its Alternative Investment Survey, the 16th annual.  This year the questionnaires received replies from 436 global hedge fund investors, with assets under management of $2.1 trillion, who shared their insights, sentiments, and allocation plans.  Glenn Bunn, co-head of Prime Finance at DB, said in a statementRead More


Eurekahedge: Greater China Mandates Pay Off for January

Feb 20th, 2018 | Filed under: Commodities, Commodities, Commodities: Examples, Digital currencies, Emerging Alternative Investments, Energy, Gold, Hedge Fund Industry Trends, Hedge Fund Strategies, Hedge Funds, Indexes, Investing in Commodities, Newly Added, oil, Other Topics in A.I., The A.I. Industry

A new Index Flash Update from Eurekahedge says that hedge funds are off to a positive start to 2018. The industry globally gained 2.26% in January. Among developed world mandates, North American hedge funds were up 1.89%, followed by those of Japan and Europe, which gained 1.28% each. Higher numbersRead More


The Rationality (or Otherwise) of Public Pension Fund Managers

Jan 28th, 2018 | Filed under: Allocating to A.I., Institutional Asset Management, Institutional Investing, Newly Added, The A.I. Industry

A new research paper from the Stanford University Graduate School of Business discusses the rationality (or otherwise) of the return expectations of institutional investors, with especial reference to public pension funds. It finds that the returns that pension fund managers expect from their investments are extrapolated from the returns thoseRead More


Firms of the Near Future: Process and Product Innovators

Jan 21st, 2018 | Filed under: Alternative Investments in Context, Newly Added, The A.I. Industry

Last summer the Boston Consulting Group put out a report on the global asset management industry, called “The Innovator’s Advantage.” The title was an allusion to a landmark 1997 book by Clayton Christensen, The Innovator’s Dilemma, which in turn was a forceful restatement of some old Schumpeterian ideas about theRead More


Stockholder Inspection Rights Survive Challenge in Delaware

Jan 16th, 2018 | Filed under: Equity Types of Private Equity, Newly Added, Private Equity, Private Investments, Regulatory Environment, The A.I. Industry

On December 29, 2017, the last business day of the expiring year, the Delaware Chancery Court, in a memorandum of opinion by Vice Chancellor Slights, upheld stockholders’ statutory books-and-records inspection rights against a defendant corporation that sought to invoke and considerably to widen the scope of the Delaware Supreme Court’sRead More


FACTOR INVESTING: GROSS TO NET RETURNS

Jan 15th, 2018 | Filed under: Fees, Hedge Fund Industry Trends, Hedge Funds, Newly Added, The A.I. Industry

By Nicolas Rabener, FactorResearch From Theory to Reality Summary: Long-short multi-factor portfolios generate attractive returns before fees Post fees charged historically returns are much less attractive However, some fees in the long-short space are likely justified given higher complexity INTRODUCTION Reality is the murder of a beautiful theory by aRead More


Top Hedge Fund Industry Trends for 2018

Jan 3rd, 2018 | Filed under: Hedge Fund Industry Trends, Hedge Funds, Institutional Asset Management, Institutional Investing, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

By Don Steinbrugge Each year, Agecroft Partners predicts the top hedge fund industry trends stemming from our contact with more than two thousand institutional investors and hundreds of hedge fund organizations. The hedge fund industry is dynamic, and participants are best served by anticipating, rather than reacting to, change. Below areRead More


Top 5 Alpha Stories of 2017

Dec 31st, 2017 | Filed under: Business News, Commodities, Commodities: Examples, Finance & Economics, Insolvency, Newly Added, oil, The A.I. Industry

In surveying this year for dramatic alpha-related stories, we have much whence to choose. This was the year in which the Murdoch family announced its intention to sell some of their highest value holdings to Disney. Also, in 2017 the EQT Rice merger (contested, unsuccessfully, by one prominent hedge fundRead More


Deloitte on the 2018 Outlook for Managers

Dec 29th, 2017 | Filed under: Hedge Fund Industry Trends, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

A new Deloitte report on the year ahead says that 2018, globally, “could be the year that records the highest average [mergers and acquisitions] deal value” for the investment manager sector. Also, this will be a big year for artificial intelligence and machine-learning algorithms; Deloitte predicts that 70% of newRead More


Hedge Funds: Myths and Pendulums

Dec 27th, 2017 | Filed under: Allocating to A.I., Hedge Funds, Institutional Asset Management, Institutional Investing, Newly Added, The A.I. Industry

Steben & Co., a Gaithersburg, Maryland headquartered fund of fund manager, has issued a white paper on the various unfavorable myths that it contends surround the hedge fund market. It says that four different myths are discouraging investments, and indeed that they are promulgated precisely for that purpose. The myths:Read More


HARK! The Allocators Sing…

Dec 20th, 2017 | Filed under: Hedge Fund Industry Trends, Hedge Funds, Newly Added, The A.I. Industry

By Diane Harrison 2017 will be a hard year for allocators and investors to get excited about hedge fund performance versus US equities. Hedge funds returned on average about 6% in the first 11 months of 2017, significantly lagging the stock market, which was up over 20% for the sameRead More


Institutional Investors Expect More Vol, Higher Interest Rates: But They Fear Not

Dec 17th, 2017 | Filed under: Allocating to A.I., Alpha & Beta, Alternative Investments in Context, Consultants, Institutional Asset Management, Institutional Investing, Newly Added, The A.I. Industry

Natixis Investment Managers has released survey data on the mood of institutional investors around the world. Natixis, which has $961 billion in assets under management, polled the decision makers of 500 institutions that together represent more than $19 trillion of assets. Among the takeaways: investors expect more volatility, in bothRead More