Browsing: Other Topics in A.I.

Other Topics in A.I.

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


DON’T FEAR THE ROBO!

Apr 20th, 2018 | Filed under: Newly Added, Retail Investing

By Diane Harrison Technology advances have infiltrated every corner of finance, including the world of wealth management. While few can argue with the positives of automated, algorithm-based portfolio management platforms, the advent of the cost-efficient, dispassionate robo-advisor has struck fear into the heart of many a financial advisor and fundRead More


Bitcoin Futures ETFs: SEC Requests Comment

Apr 8th, 2018 | Filed under: Currencies, Digital currencies, Emerging Alternative Investments, Finance & Economics, Financial Economics Theory, Newly Added, Other Topics in A.I., The Global Economy & Currencies

In December last year the NYSE Arca Inc. filed a proposed rule change that would allow for the creation of Exchange Traded Funds investing in Bitcoin futures contracts, and, potentially, in other related Financial Instruments. In January 2018 the U.S. Securities and Exchange Commission extended its review of this proposal.Read More


THE ART OF IMPROVING INVESTOR RELATIONS

Mar 28th, 2018 | Filed under: Investor Relations, Newly Added, Sales & Marketing in the AI Industry

By Diane Harrison Merriam-Webster defines a debate as ‘a regulated discussion of a proposition between two matched sides.’ A good debate is not an argument. Rather, it is a thoughtful process of insightful positioning that allows two sides of a concept to be explored on their merits. Sound a bitRead More


The PE Lifecycle Can Be Audited by Blockchain

Mar 27th, 2018 | Filed under: Digital currencies, Emerging Alternative Investments, Newly Added, Other Issues in Private Investments, Other Topics in A.I., Private Investments

On March 19, Northern Trust announced that it has enhanced its blockchain technology for private equity to the point where it can be employed by auditors. The audit firm can have its own blockchain node, which will enable access to real-time fund data. Pete Cherecwich, who runs Corporate & InstitutionalRead More


Does Strong Economic Growth Equate to High Factor Returns?

Mar 12th, 2018 | Filed under: Newly Added, Other Topics in A.I.

By Nicolas Rabener, CAIA, Factor Research EQUITY FACTORS & REAL GDP GROWTH Summary: Economic cycles have a clear impact on factor performance Some factors show pro-cyclical while others highlight anti-cyclical characteristics Given that real GDP is not published in real-time, it is unlikely effective for factor selection INTRODUCTION Financial commentators frequentlyRead 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


Robeco Researcher on Factor Premiums and ETFs

Mar 6th, 2018 | Filed under: Allocating to A.I., ETFs, Liquid Alternative Investiments, Newly Added, Other Topics in A.I., Smart Beta

David Blitz has recently discussed the concern in some quarters that factor premiums may disappear as they are arbitraged away by exchange-traded funds. Blitz, the head of quantitative equity research at Robeco Asset Management, says that such a concern is not justified, because “the exposures of ETFs that may beRead More


Whence Corporate Social Responsibility?

Mar 4th, 2018 | Filed under: Due Diligence Process, Newly Added, Other Topics in A.I., Risk Management & Operations, Socially responsible investing, SRI and Clean Energy

A new scholarly paper, forthcoming in the Journal of Financial Economics, delves into the question whether institutional investors are the driving force behind corporate social economy. I.J. Alexander Dyck and three other scholars looked specifically at the environmental and social performance of firms across 41 countries. They found that ownershipRead 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


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


A Cautionary Tale

Feb 20th, 2018 | Filed under: Newly Added, Other Topics in A.I., What about beta?

By Bill Kelly, CAIA Association CEO Shadow or not, the groundhog brought volatility out of its burrow on February 2nd, and it is safe to say that it will persist for a lot longer than the six weeks of additional winter in the Northeast part of the USA.  Along withRead More


SSGA on Smart Beta

Feb 8th, 2018 | Filed under: Allocating to A.I., Alpha & Beta, Liquid Alternative Investiments, Liquid Alts, Newly Added, Other Topics in A.I., Smart Beta

State Street Global Advisers has put out a “Complete Guide to Smart Beta.” A preface by Lynn S. Blake explains that the focus of the paper is not on equity products but on “exciting new developments in the fixed income world.” Within that space, multi-factor strategies will proliferate going forward.Read More


Ceres Report Evaluates Value of Early-Stage Clean Energy

Feb 4th, 2018 | Filed under: Alternative energy, Commodities: Examples, Emerging Alternative Investments, Energy, Newly Added, Other Issues in Private Investments, Other Topics in A.I., Private Equity, Private Investments, Socially responsible investing, SRI and Clean Energy, Venture capital

A recent publication from Ceres, a nonprofit organization devoted to promoting sustainability as a goal in both investing and corporate governance, looks at the value that early-stage clean energy products offer venture capitalists. The publication is the work of a team of five “lead authors and key contributors,” including threeRead More


What CTAs Think about Bitcoin Futures

Jan 25th, 2018 | Filed under: Commodities, CTA, Currencies, Digital currencies, Emerging Alternative Investments, Finance & Economics, Macro and Managed Futures Funds, Newly Added, Other Topics in A.I., The Global Economy & Currencies

A new BarclayHedge study indicates that the majority of commodity trading advisers surveyed are unenthusiastic about the new Bitcoin futures. Specifically, asked “do you consider Bitcoin futures to be a valuable/useful addition to a diversified futures portfolio?” nearly three quarters (73%) said “no.” The sample for this survey included firmsRead More


CRYPTOCURRENCIES – HOT BUY OR HOT AIR?

Jan 17th, 2018 | Filed under: Currencies, Digital currencies, Emerging Alternative Investments, Newly Added, Other Topics in A.I., The Global Economy & Currencies

By Diane Harrison With traditional stock markets offering robust gains in 2017 and looking poised to continue their attractiveness in 2018, investors need strong persuasion to shift their equity allocations elsewhere. Enter the latest media darling: cryptocurrencies. The alternatives news feeds are awash in stories extolling the meteoric rise ofRead More


Principles, ESG, and Credit Risk

Jan 11th, 2018 | Filed under: Newly Added, Other Issues in Private Investments, Other Topics in A.I., Socially responsible investing, SRI and Clean Energy

The UN Principles for Responsible Investment (PRI), an initiative working to put into practice six principles on the environmental, social, and governance (ESG) aspects of investment decisions, in partnership with the UNEP Finance Initiative and the UN Global Compact, has issued a paper on the credit ratings agencies and theirRead More


A Proposal for a Monthly Art Market Index

Jan 9th, 2018 | Filed under: Emerging Alternative Investments, Newly Added, Other Topics in A.I., Real Assets

It has long been understood that ownership of works of art isn’t just a collection or a hobby, or a way to brighten up the walls of one’s home. It’s a portfolio decision. But it is a portfolio decision that involves non-fungible and very infrequently traded assets.  So: how doesRead More


Women on Boards: Different Markets, Different Trends

Jan 4th, 2018 | Filed under: Newly Added, Other Topics in A.I., Socially responsible investing

The latest MSCI “Women on Boards Progress Report” notes that the advancement of women onto corporate boards and into the corporate suites of corporations with global reach has been slow. Until recently, MSCI had anticipated that 30% of the company board seats on the MSCI All Country World Index (ACWI)Read More


The Performance of Impact Investments

Dec 26th, 2017 | Filed under: Newly Added, Other Topics in A.I., Social investing, Socially responsible investing

The Global Impact Investing Network has offered its own take on a much discussed question: do “impact investing” and its variants under various names – sustainable investing, socially conscious investing, ESG investing, etc. – work? And, if so, how well? It looks at this question in a very granular way,Read More


Rukaiyah Adams, CIO Meyer Memorial Trust – doing good and investing well

Dec 26th, 2017 | Filed under: Endowments & Foundations, Institutional Asset Management, Institutional Investing, Newly Added, Personalities in AI, Practitioners, Who's Who

By Charles Skorina The $90 billion Oregon Pension ranks among the top 15 in the US, but how many in the industry know the current board chair, Ms. Rukaiyah Adams? Ms. Adams was born in Berkeley, CA, grew up in diverse, northeast Portland, and returned to her home city afterRead More


Benchmarking Distributed Ledger Technology

Dec 21st, 2017 | Filed under: Digital currencies, Emerging Alternative Investments, Newly Added, Other Topics in A.I.

Two scholars affiliated with the Cambridge Centre for Alternative Finance, in Great Britain, have prepared a fascinating overview of the present state of blockchain and distributed ledger technology (DLT). Dr. Garrick Hileman and Michel Rauchs, respectively a Research Fellow and a research assistant, have gathered data from more than 200Read More


The Transformation of the Global Reinsurance Industry

Dec 14th, 2017 | Filed under: Emerging Alternative Investments, Newly Added, Other Issues in Private Investments, Other Topics in A.I.

A new paper from Milliman, a consultant to the insurance and financial services industries, discusses the ongoing transformation in and of the global reinsurance industry that alternative investment has created. About 20 years ago, in the wake of Hurricane Andrew and the Northridge earthquake, catastrophe bonds caught on as aRead More


State Street Forecasts on Smart Beta

Dec 12th, 2017 | Filed under: Allocating to A.I., Alpha & Beta, Finance & Economics, Institutional Asset Management, Institutional Investing, Liquid Alternative Investiments, Newly Added, Other Topics in A.I., Smart Beta

State Street Global Advisors has a new paper out that seeks to help State Street clients “refine their own strategic asset allocation” especially insofar as their portfolios include smart beta investments, by explaining how State Street forecasts returns, and where the forecasts as to some of the factor returns standRead More


Deloitte on Initial Coins Offerings (ICOs) as IPOs

Dec 10th, 2017 | Filed under: Currencies, Digital currencies, Emerging Alternative Investments, Newly Added, Other Issues in Private Investments, Other Topics in A.I., Private Investments, The Global Economy & Currencies

An October 2017 white paper from Deloitte discusses the extent to which the offerings of tokens built upon blockchains have become the new IPOs of the crypto era. There are no binding rules about how to execute an initial coin offering (ICO). Nonetheless, there have been enough of these soRead More


Around the World with a Timberland Outlook

Dec 7th, 2017 | Filed under: Natural Resources and Land, Newly Added, Real Assets, SRI and Clean Energy

New Forests, an Australia-based investment manager focusing on strategies in forestry, land management, and conservation, has published its 2017 Timberland Investment Outlook. This paper begins with the observation that institutional investment in timberland now amounts to more than $100 billion. This makes it still a “relatively small” asset class, butRead More


Regulatory Challenges Posed by Crypto Funds

Dec 5th, 2017 | Filed under: Commodities, Currencies, Digital currencies, Emerging Alternative Investments, Finance & Economics, Hedge Funds, Newly Added, The Global Economy & Currencies

A forthcoming paper in the Stanford Journal of Law, Business, and Finance looks at the cryptocurrency markets (bitcoin and its kin), the hedge funds that look to make money from them and the operational issues involved. Two independent scholars collaborated on writing the paper: Edmund Mokhtarian and Alexander Lindgren. AlthoughRead More


QUANT STRATEGIES IN THE CRYPTOCURRENCY SPACE

Nov 21st, 2017 | Filed under: Digital currencies, Emerging Alternative Investments, Newly Added, Other Topics in A.I.

By Nicolas Rabener, FactorResearch Factor Investing in the Wild West of Financial Markets Summary: Cryptocurrencies have reached a market capitalisation of > $150bn Backtesting quantitative strategies is difficult given a limited trading history & universe Short-term Momentum works very well, classic factor investing strategies less so INTRODUCTION The year 2017Read More


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