Browsing: The A.I. Industry

The A.I. Industry

Build Value: Don’t Just Meet Quarterly Targets!

Aug 15th, 2017 | Filed under: Allocating to A.I., Alternative Investments in Context, Institutional Asset Management, Newly Added, The A.I. Industry

FCLT Global, a new not-for-profit organization that seeks to promote long-term thinking in business and finance, has issued a manifesto, “Rising to the Challenge of Short-Termism.” The paper was written by Dominic Barton, Jonathan Bailer, and Joshua Zoffer. Each is affiliated with McKinsey & Company, which is one of theRead More


Boston College’s CRR on Alternatives in Pension Portfolios

Aug 13th, 2017 | Filed under: Asset Allocation Models, Institutional Asset Management, Newly Added, The A.I. Industry

The Center for Retirement Research at Boston College has put out a white paper about public pensions and alternative investments.  It asks two questions: which plans have made the largest shift into alternatives? And, how has that shift mattered to their returns and risk? The report begins with the observationRead More


Real Estate Tops the Willis Alternative Investment League Table

Aug 10th, 2017 | Filed under: Hedge Funds, Industry Size & Managers, Newly Added, The A.I. Industry

Willis Towers Watson (NASDAQ: WLTW) recently posted its Global Alternatives Survey. WLTW is a consultancy with a long history, roots going back to 1828, and that now has 40,000 employees serving clients in 140 countries. The gist of its new report is that the alternatives asset industry has grown toRead More


Networks, Modeling, and Funds of Funds

Aug 8th, 2017 | Filed under: Alternative Investments in Context, Finance & Economics, Financial Economics Theory, Newly Added, The A.I. Industry

Two scholars affiliated with FERI Trust, a leading investment manager of the German-speaking countries of Europe, have written a study of hedge fund strategies that uses a “network-based analysis” thereof. The two authors, Eduard Baitinger and Thomas Maier, argue that hedge fund strategies show “numerous network-based properties” which help explainRead More


KPMG: Alternative Investment Industry Deal Momentum Continues

Aug 1st, 2017 | Filed under: Liquid Alternative Investiments, Liquid Alts, Newly Added, Other Topics in A.I., Regulatory Environment, The A.I. Industry

The auditing giant KPMG says in a recent report on merger and acquisition activity in the alternative asset management world that there was a dip in activity in this space in 2015, that there was a rebound “to more normalized levels” in 2016, and that the momentum off of thatRead More


Hedge Funds in the United Kingdom

Jul 27th, 2017 | Filed under: Alternative Investments in Context, Industry Size & Managers, Newly Added, The A.I. Industry

Just prior to the June 8 election in the UK this year, Preqin took a look at the state of the hedge fund industry there. Interest in this subject matter is high for the alternative industry globally, given London’s centrality and the great deal that is riding on how theRead More


Skin in the Game: Testing a Cliché

Jul 16th, 2017 | Filed under: Alternative Investments in Context, Asset Managers, Hedge Funds, Industry Size & Managers, Newly Added

One of the most well-worn clichés in the hedge fund industry is the phrase “skin in the game.” Investors want managers who have “skin in the game,” that is, managers who risk/hedge their own money the same way they are risking/investing their outside investors’ money. A recent paper by ArpitRead More


Growth and Challenges for Asset Management in Italy

Jun 15th, 2017 | Filed under: Allocating to A.I., Alternative Investments in Context, ETFs, Newly Added, The A.I. Industry

A recent (May 2017) Deloitte white paper discussed asset management in Italy. The paper begins with the observation that key institutions in Italian finance have a relatively short history: going no further back than the mists of the 1990s. The Società di Intermediazione Mobiliare (SIM) – literally, the phrase meansRead More


First Quarter: An Industry Recovers From a Dry Spell

May 18th, 2017 | Filed under: Hedge Funds, Industry Size & Managers, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

Preqin’s review of the hedge fund space in the first quarter of 2017 describes the quarter as a time of “return to form” after a dry spell. Two thirds of the investors interviewed by Preqin at the end of 2016 had said that their hedge fund investments had failed toRead More


Mega-Trends and Possible Future Normals

Apr 16th, 2017 | Filed under: Alternative Investments in Context, Newly Added, The A.I. Industry

A new CFA Institute report, working from a survey of 1,145 leaders in the contemporary global investment industry, discusses the mega-trends at work, including: technological advance, shifting client preferences, new macroeconomic conditions, changing regulatory regimes amidst geopolitical novelties, and new demographics. The report, entitled “Future State of the Investment Profession:Read More


Metals and Mining: A Tale of Two Doughnuts

Apr 12th, 2017 | Filed under: Industry Size & Managers, Natural Resources and Land, Newly Added, Real Assets, The A.I. Industry

Preqin has turned its Spotlight on Real Assets in a new publication, drawing our attention in particular to metals and mining. Among the institutional investors that say they are targeting unlisted metals and mining focused funds over the coming twelve months, Preqin names three as “samples”:  the Compagnia di SanRead More


A Look at Sustainable Investment around the World

Apr 6th, 2017 | Filed under: Allocating to A.I., Industry Size & Managers, Other Topics in A.I., SRI and Clean Energy

The Global Sustainable Investment Alliance, a collaboration of green investment-oriented entities, has released its latest Global Sustainable Investment Review, looking at the state of SRI investments. This is the third in a series of reports “presenting results from Europe, the United States, Canada, Asia, Japan, and Australia and New Zealand.”Read More


Pitfalls and Publicly Owned Hedge Fund Managers

Jan 31st, 2017 | Filed under: Alternative Investments in Context, Hedge Funds, Newly Added, The A.I. Industry

Two scholars affiliated with Singapore Management University have published a study of “the pitfalls of going public,” that is, of what can happen when the management of a hedge fund becomes a publicly owned company. They conclude that the going-public process itself breaks the alignment of incentives between managers andRead More


A Vision of 2020 and 6 Imperatives

Jan 24th, 2017 | Filed under: Industry Size & Managers, Newly Added, Other Topics in A.I., SRI and Clean Energy, The A.I. Industry

PwC, the global network of business and tax consultancies, has put out a white paper on the near future of the alternative asset management industry, to and through the year 2020. The paper begins with some numbers: by 2020, PwC expects the industry’s assets under management to grow to atRead More


A Brief History of Hedge Fund Regulations in India

Jan 15th, 2017 | Filed under: Hedge Fund Regulation, Industry Size & Managers, Newly Added, Regulatory Environment, The A.I. Industry

The investment world now understands that politics and related matters of business climate in the Republic of India since the dramatic victory of the Bharatiya Janata Party in 2014. What is less well known is that alternative investment funds have been among the beneficiaries of the broader change. This storyRead More


Industry Headwinds: And How to Move Forward Regardless

Dec 29th, 2016 | Filed under: Asset Managers, Industry Size & Managers, Investor Relations, Newly Added, Other Topics in A.I., Sales & Marketing in the AI Industry, The A.I. Industry

In a new white paper, CaseyQuirk has identified four catalysts said to be driving secular change in the active asset management world: New buyer demands emphasizing different value propositions for asset managers. Related to this – institutions are losing relative importance to high-net-worth individuals, and these individuals “value different attributesRead More


Women in Alternatives: A Globalized Survey

Dec 27th, 2016 | Filed under: Industry Size & Managers, Newly Added, The A.I. Industry

KPMG has released its fifth Women in Alternative Investments Report. This WAI, like its four precursors, “showcases the investment insights of women in alternatives while fostering a conversation about the unique issues facing women in the industry.” Camille Asaro and Kelly Rau, Alternative Investments, KPMG, kick off the report withRead More


PE Study: Managerial Turnover is a Good Thing for Investors

Dec 26th, 2016 | Filed under: Industry Size & Managers, Newly Added, Other Issues in Private Investments, Private Equity, Private Investments, The A.I. Industry

A recent study by Franceso Cornelli and two associates indicates that there is a positive relationship, in the private equity industry, between managerial turnover and fund performance. Cornelli is Professor of Finance, London Business School, and a fellow at the Center for Economic Policy Research.  The other authors are: ElenaRead More


Aftermath of 2008: Reactions to Decreased Liquidity

Nov 20th, 2016 | Filed under: Finance & Economics, Liquid Alternative Investiments, Liquid Alts, Macroeconomics, Newly Added, Other Topics in A.I., Regulatory Environment, The A.I. Industry, The Global Economy & Currencies

A new report from State Street Corporation and the Alternative Investment Management Association says that nearly half of the market participants surveyed believe that decreased market liquidity is a secular change, not a cyclical one: that is, that it is a climate that is here to stay, not a rainRead More


Energy Infrastructure: The Midstream Sector

Nov 10th, 2016 | Filed under: Allocating to A.I., Endowments & Foundations, Institutional Asset Management, Newly Added, Regulatory Environment, The A.I. Industry

Is it a stream or is it a sea? They seem to have gotten their hydrological imagery mixed up. But no, the “sea” in question is a literal sea, though the “stream” in question is a mere bit of imagery, so clichéd as such that no one sees it asRead More


Outsourced CIO assets grow to $1.3 Trillion

Nov 7th, 2016 | Filed under: Consultants, Institutional Asset Management, Newly Added, The A.I. Industry

By Charles Skorina With 74 firms reporting in, total outsourced CIO assets (managed with full discretion) have grown by $240 billion to $1.367 trillion since we published our last list in 2014.  That’s an increase of over 19 percent in two years, implying an annual growth rate of about 9Read More


McKinsey: Historically Anomalous Period Nears an End

Nov 6th, 2016 | Filed under: Alternative Investments in Context, Infrastructure, Newly Added, Operationally Intensive Real Assets, Real Assets, The A.I. Industry

McKinsey & Co. has posted a new report assessing the state and the future of the North American asset management industry, encompassing both active and passive managers and looking at five mega-trends. Skipping to the chase, the trends are these: The end of an anomalous eta of “exceptional investment returns.”Read More


Judge Rose: Libya’s SWF Heads Knew What They Were Doing

Nov 1st, 2016 | Filed under: Allocating to A.I., Institutional Asset Management, Institutional Investing, Legislation/Court rulings, Newly Added, Regulatory Environment, The A.I. Industry

The economic historians of posterity have their work cut out for them here. There are doctoral dissertations in the works already, no doubt. And in time several scholarly careers will hang on this.   Those scholars will have to make sense of the political developments in late-Qaddafi Libya, of the roleRead More


Impact Investing: The Impacts, Measurement and Profit

Oct 30th, 2016 | Filed under: Alpha-centric Companies, Newly Added, Other Topics in A.I., Social investing, Socially responsible investing

One candidate for the title “next new thing” is “impact investing.” As the term suggests, this refers to investing with an eye to the ways in which the investor’s decisions make an impact upon society beyond his own portfolio. This sounds a lot like socially responsible investing, or like itsRead More


Looking to the Technological Imperative: Where Has It Been?

Oct 6th, 2016 | Filed under: Equity Hedge Funds, Hedge Funds, Newly Added, Regulatory Environment, The A.I. Industry

On September 28, the Securities and Exchange Commission held an open meeting about a proposed shortening of the settlement cycle. The SEC’s staff has recommended that the settlement cycle for most broker-dealer transactions be shortened from three business days after trade date to two or, in the usual typographical abbreviation,Read More


Tick Pilot Program: A Progress Report

Oct 4th, 2016 | Filed under: Algorithmic and high-frequency trading, Business News, Finance & Economics, Newly Added, Regulatory Environment, The A.I. Industry

The long-awaited nickel-tick pilot program, an effort to test an alternative to the penny-or-less tick sizes that now prevail, , officially gets underway on October 3, and is scheduled to continue for two years. Securities have been selected and the phase-in schedule is set. The pilot is of significance, becauseRead More


THE NLRB AND THE HEDGE FUND—MUCH ADO ABOUT NOTHING?

Oct 3rd, 2016 | Filed under: Newly Added, Regulatory, Regulatory Environment

By Mark D. Schorr, Of Counsel,Crow & Cushing Maybe you thought that employers whose employees are not organized in unions or which are not involved in traditional labor activities like strikes, lockouts and picketing are outside of the jurisdiction of the National Labor Relations Board (“NLRB”).  If you did, you wouldRead More


Research, Unbundling and MiFID II

Sep 20th, 2016 | Filed under: Investor Relations, Newly Added, Other Topics in A.I., Regulatory Environment, Sales & Marketing in the AI Industry, The A.I. Industry

The “soft dollars” question, that is, the issue of the arrangements by which the managers of other peoples’ and other institutions’ money might most appropriately pay for investment-related research, remains unresolved. Traditionally, the managers of investment funds, alternatives among them, could collect rebates from the trading fees charged them byRead More


Aligning Interests: Changes in Alt Investment Business Models

Sep 18th, 2016 | Filed under: Fees, Hedge Fund Industry Trends, Hedge Funds, Industry Size & Managers, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

A new AIMA research paper discusses “the alignment of interests between hedge fund managers and investors” as it manifests itself in changes in the hedge fund business model. There have always been features in the relationship that were designed to produce such an alignment. As Michelle McGregor Smith observes, inRead More


Hedge fund activists need friends

Sep 8th, 2016 | Filed under: Equity Hedge Funds, Hedge Funds, Industry Size & Managers, Newly Added, The A.I. Industry

Two scholars at the University of Warwick, Warwick Business School, in the UK, have written a paper on “the benefits of friendship in hedge fund activism.” At the heart of the paper is the not-especially-astonishing news that hedge fund activists benefit from social ties, that is, from the ability toRead More


Sovereign Debt: A Cryonic Solution to the Holdout Problem

Sep 1st, 2016 | Filed under: Business News, Finance & Economics, Industry Size & Managers, Insolvency

Where does the world stand on the restructuring problem after NML v Argentina?  One professor and one practicing attorney recently coauthored a fascinating proposal that might answer that question, part of which they call the “cryonic solution,” after the hoped-for science of freezing people to await the development of aRead More


Fiduciary Duty, Excessive Fees, and Findings of Fact  

Aug 30th, 2016 | Filed under: Asset Managers, Industry Size & Managers, Legislation/Court rulings, Newly Added, Regulatory Environment, The A.I. Industry

The Honorable Peter J. Sheridan, for the U.S. District Court for the District of New Jersey, ruled in favor of defendants, AXA Equitable and related entities, in a consolidated derivative action on behalf of mutual fund investors. This was a lengthy decision issued on August 25 that will reward attentionRead More


Sovereign Credit Swaps: Europe’s Sovereigns and Regime Changes

Aug 16th, 2016 | Filed under: Allocating to A.I., Asset allocation, Asset Allocation Models, Credit Derivatives, Newly Added, Regulatory Environment, Structured Credit Products, Structured Products, The A.I. Industry

Andrea Consiglio and two of his colleagues have developed models for the management of risk in the sovereign credit swaps market, and they have successfully back tested these models against recent European history. Consiglio is a professor at the University of Palermo, in Italy. Sovereign CDS’ are contracts that offerRead More


New Paper Tackles Basic Questions About Alternative Investments

Aug 11th, 2016 | Filed under: Allocating to A.I., Alternative Investments in Context, Asset allocation, Asset Allocation Models, Newly Added, The A.I. Industry

RCM Alternatives, a Chicago-based asset manager specializing in managed futures products, has published a new white paper asking the naive-seeming question, “Why Alternatives?” The paper begins with the observation that many alternative investors look to this field for an answer to a specific problem:  hedging the long position in equitiesRead More


Active vs. Passive: A 3-Club Headwind

Aug 10th, 2016 | Filed under: Allocating to A.I., Alpha & Beta, Benchmarking & Performance Attribution, Newly Added, The A.I. Industry

By Scott Opsal Relative Performance Actively managed funds have recently underperformed passive indexes. As a result, fund inflows and deposits have favored passive funds. Active Vs. Passive Return Patterns Are Cyclical Our research suggests relative returns between active and passive are cyclical, depending on the market environment. We examine severalRead More


5 Reasons Why Emerging Managers are Worth a Look

Aug 8th, 2016 | Filed under: Industry Size & Managers, Newly Added, Sales & Marketing in the AI Industry, Seeding/early-stage, Structure of the Hedge Funds Industry, The A.I. Industry

By Diane Harrison Beware the industry naysayers who proclaim hedge funds aren’t worth their salt–fees/risk/terms/etc. Sweeping generalizations may make good headlines, but they are invariably proven false by the minority that refutes them through action/statements/results/etc. Investors who take the time and effort to look under the ‘hedge fund hood’ canRead More


Lyxor Quants Ask: What Exactly is a ‘Risk Factor’ Anyway?

Jul 6th, 2016 | Filed under: Allocating to A.I., Alpha & Beta, Finance & Economics, Financial Economics Theory, Newly Added, The A.I. Industry

Given the growing body of scholarly work over “risk factor” investing, especially the growing number of risks cited as factors, one has to wonder: what exactly is a “factor”?  In terms that admirers of Rodgers and Hammerstein will remember: is a feature of an investment a risk factor because it’sRead More


AIMA on the Consequences of Brexit: Three Scenarios

Jul 5th, 2016 | Filed under: Newly Added, Regulatory, Regulatory Environment, The A.I. Industry

Among the questions that have acquired a great deal of urgency in recent days is: what will Brexit mean for MiFiD? Or for MAD? Or for the CMU? Britain has always been a major voice in the creation of these systems and directives within the EU. Where will hedge fundRead More


All About Alpha: Dawn of a New Decade

Jul 4th, 2016 | Filed under: Industry Size & Managers, Newly Added

By Chris Holt Today marks the dawn of a second decade for this venerable blog.  AllAboutAlpha published its first article almost exactly 10 years ago today, on July 4, 2016.  Since then, this website has published an article a day for 2,600 consecutive business days.  That’s about 1.3 million wordsRead More


New AIMA Guide: 7 Themes for Investor Relations Professionals

Jun 23rd, 2016 | Filed under: Alternative Investments in Context, Industry Size & Managers, Investor Relations, Newly Added, Sales & Marketing in the AI Industry, The A.I. Industry

In October 2015, a scholar at the University of Toronto wrote a paper on what he called the “paranoid style of investment lawyers and arbitrators,” bemoaning an increasingly shrill and belligerent tone in the investment world of late. If there is such paranoia, one probable contributor, and one possible consequenceRead More


The hedge fund fee structure consumes 80% of alpha

Jun 20th, 2016 | Filed under: Fees, Hedge Funds, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

By Andrew Beer Investors bear the risks and managers reap the rewards. The average hedge fund earns 1.67 per cent in management fees and is paid 18 per cent of investment profits annually. Over the past ten years, investors paid away half of pre-fee returns. Even more troubling is theRead More


Centripetal versus Centrifugal Force: Fund Marketing in Europe

Jun 14th, 2016 | Filed under: Newly Added, Other Topics in A.I., Regulatory, Regulatory Environment, Sales & Marketing in the AI Industry, The A.I. Industry, UCITs

On June 2, 2016 the EC issued a consultation document of interest to the many alpha seekers who would like to market their funds in one or more of the countries of the Eurozone. In a sense, its interest is much broader than that, because it fits into a veryRead More


SLAM Wars: The Flow Awakens Ranking Asset-Manager Flows & Profits

Jun 6th, 2016 | Filed under: Asset Managers, Endowments & Foundations, Family Offices, High-net-worth investors, Industry Size & Managers, Institutional Asset Management, Institutional Investing, Newly Added

By Charles A. Skorina As recruiters we work both sides of the investment-management street: serving for-profit money managers and not-for-profits like foundations and endowments.Fee-based publicly listed asset managers, especially the big ones, are newsworthy because they invest a lot of money for a lot of customers, including non-profits investors.  There’sRead More


Investors ‘Misoverestimate’ ETFs and a Push Towards ESG

May 26th, 2016 | Filed under: Allocating to A.I., ETFs, Industry Size & Managers, Newly Added, Other Topics in A.I., Socially responsible investing, SRI and Clean Energy, The A.I. Industry

In a newly released report, Natixis Global Asset Management speaks to the quite positive views of passive investment vehicles and exchange traded funds that it finds in today’s marketplace.  Their report inspires the neologism “misoverestimate,” as a logical analog of a former U.S. president’s term, “misunder ….” A Natixis surveyRead More


The Alberta Approach to Benchmarking & Performance Attribution

May 18th, 2016 | Filed under: Allocating to A.I., Benchmarking & Performance Attribution, Industry Size & Managers, Newly Added, The A.I. Industry

The Alberta Management Investment Corp. began life in 2008, as a successor to a division of Alberta Finance. It became a crown corporation in order to better manage the allocation of assets for twenty-six pension funds and investment plans. Its leaders initiated a review and soon discovered that they hadRead More


The SEC: Still Fiddling with a 1940 Era Carburetor 

May 3rd, 2016 | Filed under: Alternative Mutual Funds, Liquid Alternative Investiments, Liquid Alts, Newly Added, Other Topics in A.I., Regulatory, Regulatory Environment, The A.I. Industry

Steven A. Keen of Perkins Coie has posted an insightful discussion of section 18 of the Investment Company Act of 1940, and of the pending proposed regulation under that mandate, Rule 18f-4, on one of that firm’s blogs, the Derivatives & Repo Report. Both that proposal and Keen’s observations areRead More


Brexit and Derivatives: Allen & Overy’s Views

May 1st, 2016 | Filed under: Due Diligence Process, Newly Added, Regulatory Environment, Risk Management & Operations, The A.I. Industry

A decision by the United Kingdom to leave the European Union could be a bad thing for the derivatives markets. But from a legal standpoint there isn’t a lot that can be done about it in advance, and the existing Master Agreement for derivatives needs no change. Those are theRead More


The Impending Market Abuse Regulation (MAR) Mandates

Apr 10th, 2016 | Filed under: Newly Added, Regulatory, Regulatory Environment, The A.I. Industry

On July 3, 2016 the new Market Abuse Regulation comes into effect throughout Europe, pursuant to 2014 legislation. The member states have transposed the MAR into national law.  Stefan Hendrickx is the founder and executive Director of Ancoa, recently looked at the “race to the MAR deadline” from the point ofRead More


Don’t Blame Bass for the Failure of Bear Stearns

Apr 3rd, 2016 | Filed under: Hedge Funds, Newly Added, Other Topics in A.I., Personalities in AI, The A.I. Industry, Who's Who

Prominent alpha seeker Kyle Bass is named in the March 29 Wall Street Journal with a headline and lead paragraph that suggest that he was the man who set in motion the avalanche that brought down Bear Stearns in the spring of 2008. The truth, as one discerns only fromRead More


Weeden Suggests Half-a-Loaf for IEX

Mar 23rd, 2016 | Filed under: Industry Size & Managers

As regular readers know, AllAboutAlpha has been following the continuing controversy over IEX, the ATS designed by Brad Katsuyama around a “speed bump.” For the uninitiated, that speed bump is a trick for saving institutional investors from the rigors of an otherwise-necessary arms race with the high-frequency traders. Of late,Read More