Browsing: Other Topics in A.I.

Other Topics in A.I.

Amato on the Late-Cycle Dilemma

Nov 16th, 2017 | Filed under: Business News, Newly Added, Other Topics in A.I., Personalities in AI

Joseph V. Amato, president of Neuberger Berman Group LLC and Chief Investment Officer – Equities at Neuberger Berman, has written a thoughtful discussion of late about where the markets, and the business cycle, stands. This, the end of 2017, is a “late cycle” moment. Equities continue to rise, but theRead More


Lazard Research on Smart Beta

Nov 5th, 2017 | Filed under: Behavioral finance, Due Diligence Process, Finance & Economics, Financial Economics Theory, Newly Added, Other Topics in A.I., Risk Management & Operations, Smart Beta

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


FACTOR RETURNS: SMALL VS. LARGE CAPS

Nov 1st, 2017 | Filed under: Finance & Economics, Newly Added, Other Topics in A.I.

By Nicolas Rabener, FactorResearch Are Factor Returns Limited to Small Caps? Summary: A frequent criticism of factor investing is that factor returns are stronger in small caps; Our research highlights that this is not uniformly true across factors; and Value and Size benefit most from including small caps. INTRODUCTION FactorRead More


TALK FOR SHOW, BLOG FOR DOUGH

Oct 16th, 2017 | Filed under: Investor Relations, Newly Added, Sales & Marketing in the AI Industry

By Diane Harrison Despite being overused in finance, the golfing analogy ‘Drive for show, putt for dough’ bears relevance in alternative investments. While the bigger, flashier managers in alternatives often garner the most media and investor attention, smaller managers have a real chance to exhibit their investment acumen through theRead More


Performance of SRIs: Funds and Indexes

Oct 5th, 2017 | Filed under: Alternative energy, Newly Added, Other Topics in A.I., Socially responsible investing, SRI and Clean Energy

A new paper by Giuseppe Risalvato, a Ph.D. candidate at Università Carlo Cattaneo, Italy, contends that there is no “ethical sacrifice” in investing. That is, there is no discount that investors who want to be socially responsible will have to pay for that choice. Risalvato makes two chief theoretical argumentsRead More


A PRACTICUM FOR AUM

Sep 18th, 2017 | Filed under: Investor Relations, Newly Added, Other Topics in A.I., Sales & Marketing in the AI Industry

By Diane Harrison There’s no denying that one of the biggest challenges small managers face is raising capital. To become large enough to turn a profit and expand is a common migraine that keeps emerging managers up at night. Forget fretting over last quarter’s performance: most of these managers obsessRead More


A Call to Norway to Invest in Renewables

Sep 14th, 2017 | Filed under: Newly Added, Other Topics in A.I., Socially responsible investing, SRI and Clean Energy

A new paper from the Institute for Energy Economics and Financial Analysis looks at Norway’s pension fund, which is now in the process of increasing its investment in stock from 62.5% of the portfolio to 70%. The total portfolio value is now $7.5 trillion NOK, or about US $976 billion.Read More


Paying the Top Guns of Institutional Investing

Sep 11th, 2017 | Filed under: Endowments & Foundations, Institutional Asset Management, Institutional Investing, Newly Added, Personalities in AI

By Charles Skorina Last month in Part One of this report we focused on relative performance.  We ranked 107 CIOs by trailing 5-year returns. Now, we focus on how much institutions pay these excellent people. The bare comp numbers lead us to the tricky and perennial question of whether their payRead More


Eurekahedge Reports: Total Industry Assets Stand at $2.33 Trillion

Aug 29th, 2017 | Filed under: Industry Size & Managers, Newly Added, Other Topics in A.I., SRI and Clean Energy, Structure of the Hedge Funds Industry, The A.I. Industry

Eurekahedge’s August report says that the Eurekahedge Hedge Fund Index grew by 0.88% in July 2017, while the underlying markets represented by the MSCI World Index grew by 1.64%. For June, overall, managers reported performance based losses of $8.4 billion, so that the industry growth was due entirely to netRead More


Can We All Participate in The Next Unicorn?

Aug 28th, 2017 | Filed under: Crowdfunding, Emerging Alternative Investments, Newly Added, Other Topics in A.I., Retail Investing, The A.I. Industry

Excerpted from the Alternative Investment Analyst Review, Volume 6, Issue 1 The Alternative Investment Analyst Review is the official publication of the CAIA Association. Access to the most current issue is an exclusive benefit of CAIA Membership while archived issues are available to the public in the Perspectives section atRead More


Blockchains, Innovations, and Intermediaries

Aug 17th, 2017 | Filed under: Digital currencies, Emerging Alternative Investments, Newly Added, Other Topics in A.I.

A new paper by Wulf A. Kaal, an Associate Professor at the University of St. Thomas in Minnesota, looks at the proliferation of blockchain-related innovations in the world of private investment funds. In an earlier paper, Kaal discussed the impact this is having on the fee structure of that industry.Read More


Til and Heckinger on Commodity Debacles, Part II

Aug 6th, 2017 | Filed under: Due Diligence Process, Newly Added, Personalities in AI, Risk Management & Operations

A 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


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


An Alternative Approach to Responsible Investing

Jul 31st, 2017 | Filed under: Newly Added, Other Topics in A.I., Socially responsible investing, SRI and Clean Energy

On May 18, 2017, CAIA’s Boston Chapter held a panel discussion at the InterContinental Boston on “An Alternative Approach to Responsible Investing.” Moderated by Bill Kelly, CEO, CAIA Association, panelists included leading ESG investing experts Tim Brennan, Treasurer & CFO, Unitarian Universalist Association; Jeff Finkelman, CFA, Research Associate, Impact Investments,Read More


Brief Thoughts on the Impacts of Autonomous Learning Investment Strategies on Investment Management and Employment

Jul 21st, 2017 | Filed under: Newly Added, Other Topics in A.I.

By Michael Weinberg, CFA In our thought piece, “The Intelligent Investor in an Era of Autonomous Learning,” we explained why we believe the investment world will be transmogrified by Autonomous Learning Investment Strategies (ALIS).  In this brief follow-up, we will address a question that many of our investors and othersRead More


The 100+ Top Guns of Institutional Investing

Jul 12th, 2017 | Filed under: Endowments & Foundations, Institutional Asset Management, Institutional Investing, Newly Added, Personalities in AI, Who's Who

By Charles Skorina This letter looks at the most recent five-year performance of over one hundred of the world’s best institutional investors. Endowment chief investment officers have an infinite investment horizon, a global playing field, and can invest in anything anywhere – within the broad policy limits set by theirRead More


Wine: French Producers, U.S. Consumers, the World’s Investors        

Jul 4th, 2017 | Filed under: Emerging Alternative Investments, Natural Resources and Land, Newly Added, Other Topics in A.I., Real Assets

Agrifrance recently posted a report looking at the French wine industry, with an especial focus on export to the United States. The U.S. “has been the world’s leading wine market by value since 2013,” says the company head, Benoit Léchenault, in a preface to the report. France is the secondRead More


What They’re Saying About Smart Beta, Tactics, and Strategy

Jun 13th, 2017 | Filed under: Liquid Alternative Investiments, Liquid Alts, Newly Added, Other Topics in A.I., Smart Beta, SRI and Clean Energy

For four years now, FTSE Russell has surveyed global institutions, asking about their interest in smart beta indexes and about their allocations to investable products based on same. The 2017 survey results are in. The new survey finds (as did the earlier ones) that risk reduction, return enhancement, and improvedRead More


Institutions that Integrate ESG Considerations: 6 Types

Jun 8th, 2017 | Filed under: Alternative energy, Climate change, Newly Added, Other Topics in A.I., Social investing, SRI and Clean Energy

A new white paper from the Investor Responsibility Research Center (the IRRC Institute) in conjunction with Sustainalytics looks at the various approaches that investors, institutional investors in particular, might and do take to integrate ESG issues into their portfolio decisions. Specifically, the IRRC and Sustainalytics, two Manhattan-based research groups longRead More


Lawsuit in California, Survey in Europe: On ETF Managers and Investors

Jun 4th, 2017 | Filed under: Liquid Alternative Investiments, Newly Added, Other Topics in A.I., Sales & Marketing in the AI Industry

Late last year a California state court found that the plaintiffs in a class action suit stated a cause of action when they alleged that the defendant, iShares Trust, had failed to disclose the material risk of using market or stop loss orders in connection with ETFs. This spring theRead More


The Intelligent Use of Smart Beta     

May 25th, 2017 | Filed under: Allocating to A.I., Newly Added, Other Topics in A.I., Smart Beta

This is the first of a series of articles on smart beta. By Scott Opsal, The Leuthold Group Understanding Factor Returns And Market Conditions Quantitative investing has become an integral component of professional investment management, and smart beta funds have become popular vehicles for advisors as they assemble actively-managed clientRead More


Marketplace Lending: Just Because I’m Disruptive Doesn’t Mean We Can’t Be Friends!

May 23rd, 2017 | Filed under: Emerging Alternative Investments, Microfinance, Newly Added, Other Issues in Private Investments, Other Topics in A.I., Private Investments

Mark Shore, chief research officer of Shore Capital Research, and an adjunct professor at DePaul University, has prepared an “overview” of marketplace lending for institutional investors and wealth managers. The practice under discussion is also known as peer-to-peer, or even in these character economizing days as P2P, lending. Shore explainsRead More


Making a Case: Divestiture is the Wrong Tool Re Climate Risk

May 17th, 2017 | Filed under: Newly Added, Other Topics in A.I., SRI and Clean Energy

Sarah Bernstein, of the Pension Consulting Alliance, has prepared a discussion paper for the benefit of the Vermont Pension Investment Committee, on climate risk divestment.  Specifically, Bernstein wrote in reply to a request from the VPIC to examine three divestment tracks of common intent but differing levels of generality:  thermalRead More


The Cryptocurrency Ecosystem: A New Benchmark Study

May 16th, 2017 | Filed under: Currencies, Digital currencies, Emerging Alternative Investments, Finance & Economics, Newly Added, Other Topics in A.I., The Global Economy & Currencies

It is clear by now to even the most hardened skeptic that cryptocurrency, the class of assets of which bitcoin is the paradigm, is much more than a passing fad. Yes, the field may once have been too closely associated with survivalists, cranks, and bit players in the story ofRead More


Real Assets and Environmental/Social Impacts

May 11th, 2017 | Filed under: Alternative energy, Natural Resources and Land, Newly Added, Other Topics in A.I., Real Assets, SRI and Clean Energy

It’s an old debate: does socially responsible investing under its variations (including “impact investing”) come at a cost in terms of risk-adjusted performance? Or does it actually add a dividend, so that one does well by doing good? Or are impact and non-impact investing in otherwise comparable assets on aRead More


ESG Concerns Have Multi-Factored Impact on Performance

May 2nd, 2017 | Filed under: Newly Added, Other Topics in A.I., SRI and Clean Energy

The Cornerstone Capital Group, in a new white paper, looks at some of the specific interactions between ESG and investment factors. The paper, by Michael Geraghty, a global equity strategist for Cornerstone,  begins with a review of five of the factors most thoroughly studied in academia: value, the capture ofRead More


Generation Two Liquid Alternatives

Apr 25th, 2017 | Filed under: Liquid Alternative Investiments, Liquid Alts, Newly Added, Other Topics in A.I., Sales & Marketing in the AI Industry

Beachhead Capital Management has published a white paper on what it calls the “second generation of liquid alternatives.” To begin at the beginning, “liquid alternatives” are investment products, available to retail investors, for example through mutual funds or ETFs, which are designed to provide the diversification and absolute-return benefits typicallyRead More


Ernst & Young on ESG Reporting

Apr 23rd, 2017 | Filed under: Newly Added, Other Topics in A.I., Socially responsible investing, SRI and Clean Energy

Are companies leveling with their shareholders and stakeholders in reporting data pertinent to their environmental and social impacts and their governance issues? Whether they are or aren’t levelling: how important is that as part of their relationship with their investors? For Ernst & Young, these questions have become more pressingRead More


THE Q&A THAT’S DOA (A.K.A. DEAD ON ARRIVAL)

Apr 10th, 2017 | Filed under: Investor Relations, Newly Added, Sales & Marketing in the AI Industry

By Diane Harrison Few offenses are more aggravating to investors In the investor/manager communication process than being misled. Who hasn’t been subject to the frustration of trying to ascertain a clear answer from an alternatives manager about an issue germane to the investor’s ultimate decision to invest or not toRead 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


Investing in Renewable Energy’s Infrastructure

Mar 23rd, 2017 | Filed under: Newly Added, Other Topics in A.I., SRI and Clean Energy

As AllAboutAlpha’s readers likely know, in December 2015, in Paris, representatives of 195 countries adopted a framework for the mitigation of the effects of the emissions of greenhouse gases. The framework (known simply as the Paris Agreement) aims to confine the increase in global average temperature to just 2? CRead More


Commit to Quit: Habits for Successful Fund Managers

Mar 20th, 2017 | Filed under: Investor Relations, Newly Added, Sales & Marketing in the AI Industry

By Diane Harrison What habit is as old as time itself? It has to be making all kinds of ‘do-better’ resolutions at the beginning of the year, only to see them falter before the birds start building their nests each spring. NBC News ran an article online in January discussingRead More


Factor Investing And The Importance Of Market Cycles

Mar 15th, 2017 | Filed under: Allocating to A.I., ETFs, Newly Added, Other Topics in A.I., Smart Beta

By Scott Opsal, CFA Director of Equities, The Leuthold Group The widespread popularity of smart beta ETFs demonstrates that factor-based investing has advanced from the province of academia to rank among the most popular investment strategies for institutional and retail investors. Originally of interest to researchers looking to test, andRead More


BlackRock: Smart Beta Strategies Have Room for Growth

Mar 5th, 2017 | Filed under: Allocating to A.I., Alpha & Beta, ETFs, Liquid Alternative Investiments, Liquid Alts, Newly Added, Other Topics in A.I., Smart Beta

A recent Columbia Business School research paper looks into the transaction costs associated with smart beta strategies in order to estimate the capacity of each strategy. The three authors of the report are all affiliated with asset manager BlackRock Inc. They are: Ronald Ratcliffe, Paolo Miranda, and Andrew Ang. RatcliffeRead More


Notes on Impact Investing in Europe

Feb 28th, 2017 | Filed under: Newly Added, Other Topics in A.I., Social investing, Socially responsible investing, SRI and Clean Energy

The Science Communication Unit (SCU) of the University of the West of England has produced what it calls a “future brief,” a discussion of environmental impact investing focused especially on the European context. The term “impact investing” itself is only about a decade old. The idea, under various guises, isRead More


Liquid Alternatives: A Look Back at Mercer’s Look Around

Feb 23rd, 2017 | Filed under: Liquid Alternative Investiments, Liquid Alts, Newly Added, Other Topics in A.I.

The market for liquid alternatives continues to grow and adapt. On St. Valentine’s Day of this year, ABR Dynamic Funds announced that it was launching its first Irish-domiciled UCITS V fund. Maybe it should have waited until St. Patrick’s Day? At any rate, the fund “seeks U.S. participation in aRead More


CHANGE MANAGEMENT FOR FUND MANAGERS

Feb 8th, 2017 | Filed under: Investor Relations, Newly Added, Sales & Marketing in the AI Industry

By Diane Harrison Looking to the past as a way to gauge the likely direction of the future is a popular exercise in the first quarter of every year. It’s a natural desire for people to want to improve on their personal and professional lives; taking stock of where theyRead 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


On the Bitcoin Blockchain: Looking Under the Hood

Jan 19th, 2017 | Filed under: Algorithmic and high-frequency trading, Business News, Currencies, Digital currencies, Emerging Alternative Investments, Finance & Economics, Newly Added, The Global Economy & Currencies

More than a year ago, the Capco Institute Journal of Financial Transformation (Journal) ran a “critical assessment,” by Robert Sams, of bitcoin blockchains as a means of distributed clearing. With both bitcoins and blockchains newly in the news, Sams’ informed assessment is worth another look. Two years ago, Nasdaq announcedRead 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


Ammar on the Implied Volatility Smile

Dec 22nd, 2016 | Filed under: Emerging Alternative Investments, Newly Added, Other Issues in Private Investments, Risk Management & Operations, Risk Management Strategies & Processes

In a new working paper, a scholar at the School of Finance, at the University of St Gallen, Switzerland,   Semir Ben Ammar, has analyzed the relationship between catastrophe risk and the “implied volatility smile” in stock options.  Along the way, he has proposed what may be a novel type ofRead More


For The Netherlands: Sustainable Development Proposal

Dec 18th, 2016 | Filed under: Emerging Alternative Investments, Microfinance, Newly Added, Other Topics in A.I., SRI and Clean Energy

Eighteen major financial institutions, including ABN AMRO and ING Groenbank, have signed onto an ambitious program for sustainable development goals’ investment (SDGI). The institutions involved proclaim that they believe it is in their best interest, “as well as that of our clients and investees, to consider the largest societal challengesRead More


Shedding Light on the ESG/SRI Scene      

Dec 6th, 2016 | Filed under: Climate change, Newly Added, Other Topics in A.I., SRI and Clean Energy

The US SIF Foundation has published its latest Trends Report on sustainable, responsible, and impact investing. On the one hand, this is a statistical snapshot of US-domiciled assets in the ESG/SRI field at years’ end 2015. On the other hand, it offers fascinating historical material making it clear how weRead 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


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


Academics:  No, Navinder Sarao Did Not Cause the Flash Crash 

Oct 25th, 2016 | Filed under: Algorithmic and high-frequency trading, Business News, Finance & Economics, Hedge Fund Operations and Risk Management, Newly Added, Operations, Personalities in AI, Risk management, Risk Management & Operations, Technology

Mid-October news reports tell us that Navinder Sarao has lost his effort to avoid extradition from Britain to the United States. So he will face charges in the U.S. in connection with the “flash crash” of May 2010, the incident in which the DJIA fell 998.5 points in less thanRead More


BLEAK HOUSE–OR THE OUTLOOK ON HEDGE FUNDS NOW

Oct 19th, 2016 | Filed under: Allocating to A.I., Endowments & Foundations, Family Offices, Hedge Fund Industry Trends, Hedge Funds, High-net-worth investors, Institutional Asset Management, Institutional Investing, Investor Relations, Newly Added, Sales & Marketing in the AI Industry

By Diane Harrison Charles Dickens’ Bleak House spins a tale of mystery, intrigue, family dynamics, and irony in the Victorian age that had readers gripped by its indictment of the English court system. While the novel is packed with intricate plot twists and turns, the main story line centers onRead More


Harvard gives Narv the nod

Oct 17th, 2016 | Filed under: Academic Foundations, Endowments & Foundations, Institutional Asset Management, Institutional Investing, Newly Added, Personalities in AI, Who's Who

By Charles Skorina As all the world now knows, Harvard has selected Columbia’s Nirmal P. “Narv” Narvekar as the new head of Harvard Management Company. His name had been bandied about as a prime candidate for weeks.  We discussed it ourselves in our Aug. 29 newsletter. Reportedly, a few big-endowment CIOsRead More


Kyle Bass, IPR and Shorting Big Pharma

Sep 22nd, 2016 | Filed under: Intellectual Property, Newly Added, Operationally Intensive Real Assets, Other Topics in A.I., Personalities in AI, Real Assets

Kyle Bass, the investor who shorted the market in residential mortgage-based securities a decade ago, with speculator success, is interested now in shorting the major pharmaceutical companies. He is certainly entitled to try that play. But what is especially provocative and controversial is that he also seems willing to giveRead 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