Browsing: Operationally Intensive Real Assets

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Operationally Intensive Real Assets

SWFs Looking to PEs Both as Intermediaries and as Co-investors

Feb 2nd, 2017 | Filed under: Infrastructure, Natural Resources and Land, Newly Added, Operationally Intensive Real Assets, Real Assets

A recent working paper from the European Corporate Governance Institute discusses direct investment by sovereign wealth funds in private equity transactions – that is, it discusses an ongoing shift from investing in PE funds to co-investing with PE funds. The paper describes this as a trend especially viable in theRead More


Infrastructure Project Finance: Benchmarking and Definitions

Nov 22nd, 2016 | Filed under: Infrastructure, Newly Added, Operationally Intensive Real Assets, Real Assets

In a new article in The Journal of Alternative Investments, three EDHEC-affiliated scholars, led by Frédéric Blanc-Brude, the director of the EDHEC Infrastructure, Singapore, look at recent improvements in the understanding of the financial performance of privately held infrastructure investments, debt or equity, with respect to benchmarking thereof.  They concludeRead More


Dakota Access and the Army Corps of Engineers: An Odd Mistake?

Nov 13th, 2016 | Filed under: Commodities, Commodities, Commodities: Examples, Infrastructure, Newly Added, oil, Operationally Intensive Real Assets

On November 7, the U.S. Army Corps of Engineers put out a statement that said that the Dakota Access Pipeline (DAPL) had agreed to halt its controversial ongoing construction in North Dakota. The following day, which happens to have been Election Day, [so non-election news went largely uncovered], the ownersRead 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


Islam, Western Pensions, and Real Assets

Oct 18th, 2016 | Filed under: Allocating to A.I., Institutional Asset Management, Institutional Investing, Intellectual Property, Natural Resources and Land, Newly Added, Operationally Intensive Real Assets, Real Assets

A recent academic discussion of the much-vexed question of Islamic finance (including the always at least implicit query, how does it fit into the broader usually non-Islamic global picture?) focuses on the role in Islam of real assets, understood as tangible objects such as land, buildings, machinery, and commodities. TheRead More


Saving the World: One EM City at a Time

Oct 10th, 2016 | Filed under: Infrastructure, Newly Added, Operationally Intensive Real Assets

The Global Commission on the Economy and Climate has issued a new report urging governments and major financial institutions to “scale up and shift investment to sustainable infrastructure as a fundamental strategy….” The report, The Sustainable Infrastructure Imperative, has no force as law or policy anywhere, but it may signalRead 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


Private Capital Fundraising Slows: Green and Brown Valleys

Jul 14th, 2016 | Filed under: Farmland, Infrastructure, Natural Resources and Land, Newly Added, Operationally Intensive Real Assets, Other Topics in A.I., Real Assets, Real Estate, Real Estate Equity Investments

Preqin, the multinational data and consulting firm, has looked at the second quarter and found it was, for private capital fundraising  … slow. So was the quarter before it. Together they made up the first half of 2016, in which the funds closed in the world of private capital globallyRead More


Infrastructure: Look at the Contracts–Not the Industry or the Index

Jul 10th, 2016 | Filed under: CAPM / Alpha Theory, Finance & Economics, Financial Economics Theory, Infrastructure, Newly Added, Operationally Intensive Real Assets, Real Assets

A new paper from EDHEC Infrastructure Institute decides that there is no such thing as a listed infrastructure asset class. What is the practical significance of that inference?  It means that for investors (individual or institutional) looking to diversify their portfolio properly, a dedicated index focused on a listed infrastructureRead More


Welcome to Low-Return World: Will Chief Investment Officers and Trustees be ready?

Jun 22nd, 2016 | Filed under: Infrastructure, Institutional Asset Management, Institutional Investing, Newly Added, Operationally Intensive Real Assets

By Charles Skorina For executive recruiters like us, that’s a question we’ll have to wrestle with as we present candidates to the boards of institutional asset managers. Two of our investment-management village elders–Bill Gross and Burton Malkiel–say we’re staring down the barrel of a low-return decade.  They’ve been around for aRead More


Somebody Has to Crunch These Numbers: Infrastructure Cash Flow

Jun 5th, 2016 | Filed under: Infrastructure, Newly Added, Operationally Intensive Real Assets, Real Assets

EDHEC Infrastructure Institute-Singapore recently released a paper on the cash flow dynamics of private infrastructure project debt. The gist of the paper is that investors’ ability to understand credit risk in private infrastructure debt turns on advanced statistical techniques. Or, in the authors’ words, “the nature of the data requiresRead More


Infrastructure, Dividends and Path Dependence

Apr 21st, 2016 | Filed under: Infrastructure, Newly Added, Operationally Intensive Real Assets, Real Assets

A new paper from EDHEC Infrastructure Institute-Singapore argues that infrastructure firms represent a unique business model, one with lower revenue volatility, higher payouts, and substantially lower correlation with the business cycle than other firms. An “infrastructure firm” for purposes of this discussion is either a special purpose vehicle created inRead More


API: An Emerging Multi-Trillion-Dollar Market

Sep 29th, 2015 | Filed under: Business News, Operationally Intensive Real Assets

IBM has now purchased Strongloop, and this has gotten Faille thinking about APIs, a potential multi-trillion dollar market. Where technology's imperatives press again the law: how to bet? Read More


How Public Pensions Are Getting Smart About Infrastructure

Sep 24th, 2015 | Filed under: Institutional Asset Management, Operationally Intensive Real Assets

Guest columnist Jill Eicher looks at how public pension funds are cutting out the middle man and leveraging the power of their own capital for infrastructure investments.Read More


An Overview of Real Asset Investing

Aug 26th, 2015 | Filed under: Infrastructure, Intellectual Property, Private Equity, Real Estate, Risk management

Guest columnist Andrew Smith, CAIA, provides an overview of real assets and their commensurate risks and rewards.Read More


SCOTUS on Copyright Means a Win for Fences: Loss for the Noosphere

Jul 6th, 2015 | Filed under: Institutional Investing, Intellectual Property

An idea for the hierarchical design of a platform's APIs, and a particular expression of that idea, walk into a bar. What's the punch line? Read More


PwC Looks Ahead to 2020: Offers a Roadmap for Alternative Investment Managers

Jul 5th, 2015 | Filed under: Emerging markets, Hedge Fund Industry Trends, Hedge Fund Strategies, Infrastructure, Technology

PwC offers a glimpse of a 'day in the life' of a typical compliance analyst in 2015 and again in 2020. As these authors tell it, the day is filled with data, darkness, and drudgery at present, but it will be airy, alliterative, and analytical in another five years. Read More


Who Will Meet Yahoo at the Altar?

Jun 16th, 2015 | Filed under: Alpha Strategies, Intellectual Property, Real Estate, Technology

There was some excitement as recently as January 2015 over renewed talk of a Yahoo/AOL deal, but after the bloom finally came off that rose, YHOO settled into a trading range has been roughly from $42 to $46. Faille guesses that there is an opportunity here on the upside of that range, because another suitor is bound to appear.Read More


Java IP War: The Obama Administration Picks the Wrong Side

Jun 8th, 2015 | Filed under: Intellectual Property, Technology

The Solicitor General, speaking for the United States, has filed the expected amicus brief in the Google/Oracle showdown. The SG's position is that the Supreme Court should refuse to hear the case so that the lower courts can get back to using what the brief calls the "flexible fair use doctrine" to do justice. Read More


Farm Land: The Risks & Rewards of Buying Direct

Jun 7th, 2015 | Filed under: Farmland, Infrastructure, Institutional Investing, Real Estate

Guest columnist Andrew Smith, CAIA, examines the risks and rewards of investing directly in farmland.Read More


What’s in a Copyright? Java API Case Before U.S. Supreme Court

May 25th, 2015 | Filed under: Institutional Investing, Intellectual Property, Technology

High-stakes litigation between Google and Oracle approaches its resolution at the Supreme Court. For seekers of alpha, this isn't just about what investments to make, but about the way one goes about making them, the very mechanics of trading. Read More


Some Assets are Hard to Ignore

Apr 23rd, 2015 | Filed under: Alpha Hunters, Alpha Strategies, Currencies, Gold, Hard metals, Infrastructure

Guest columnist Diane Harrison looks at the world of alternatives to alternatives, including stamps, cars, farmland and more...Read More


Aleynikov’s Trial and My Cousin Vinnie

Apr 21st, 2015 | Filed under: Algorithmic and high-frequency trading, Intellectual Property, Legislation/Court rulings

A party seeking to employ an expert witness is supposed to let the other side know who the expert is in advance of trial. Fans of a classic Joe Pesci movie will remember that it isn't necessary to join the prosecutor in a hunting lodge. Read More


Gazelles, Exports, and Infrastructure: A View from the UK

Mar 11th, 2015 | Filed under: Infrastructure

The Confederation of British Industry has taken a look at some of the issues that do and should concern investors in the industries of those islands. Among much else, the CBI wants the government to kick-start the private placement market. And to worry more about infrastructure. Read More


Long-Term Infrastructure Debt: The Valuation Issue

Feb 26th, 2015 | Filed under: Alpha Strategies, Infrastructure, Insolvency

Three authors at EDHEC propose a two-step modeling process for the valuation of certain infrastructure debt. One of the key ideas they incorporate is the value of the step-in rights that come when the issuers violate a covenant or otherwise find themselves in technical default. Read More


Down Memory Lane: That WTI-Brent Divergence

Feb 18th, 2015 | Filed under: Commodities, Infrastructure, oil

For one professor, the surprising divergence in the prices of WTI/Brent crude in the period 2010-2012 was a case study in how commodity prices can teach us about supply chain conditions. Faille looks back at his article, and forward past today's calmer but still-fluctuating spread. Read More


Crowdfunding: In the Gun Sights of Patent Plaintiffs

Feb 3rd, 2015 | Filed under: Crowdfunding, Intellectual Property, Legislation/Court rulings, Regulatory

The first of the three patents cited by the plaintiffs was filed at a time when the crowdfunding exemption movement was making a fair amount of noise on Capitol Hill, though it had not yet had tangible success. One might already entertain certain suspicions. Read More


The Building of an Infrastructure for Renewables: A Report

Nov 5th, 2014 | Filed under: Alternative energy, Commodities, Infrastructure, Private Equity, Socially responsible investing

In 2012, [as the crude oil price was settling in to $110 and low vol,] the renewables’ infrastructure space for private funds reached an aggregate estimated deal value of $132 billion. In 2013, that fell to $95 billion. It now seems unlikely that 2014 will match last year. Read More


Custodians Helping Customers with Securities as Collateral

Sep 11th, 2014 | Filed under: Infrastructure, Insolvency, Risk management

How address issues of supply/demand imbalance in the world of collateral requirements? Custodians can do a good deal on behalf of their customers here, and are exploring just how much. Read More


Advancing the Infrastructure Investment Narrative

Aug 11th, 2014 | Filed under: Alpha Strategies, Infrastructure, Insolvency

Intuitively, the problem with valuing the debt issued by an private SPE in an illiquid infrastructure project is this: the free cash flows of the SPE aren't easily observed. So how does one go about deriving their present value? Read More


Isn’t all Software Abstract?: A Meditation on Alice Corp.

Jun 24th, 2014 | Filed under: Intellectual Property, Regulatory, Technology

Justice Thomas writes, "Deciding whether or not a particular claim is abstract can feel subjective and unsystematic, and the debate often trends toward the metaphysical, littered with unhelpful analogies and generalizations.” He has not given the debate a different turn, it will continue to trend toward the metaphysical etc. Read More


EDHEC: Investors Who Don’t Want to be Mushrooms Need Benchmarks

Jun 16th, 2014 | Filed under: Infrastructure, Private Equity

Investors need benchmarks, especially benchmarks of likely infrastructure return, because the long-term illiquid nature of that investment increases information asymmetry between investors and managers, whereas benchmarks keep this asymmetry bearable. So explains Frédéric Blanc-Brude of EDHEC. Read More


Squeezed Margins and a Move to the Clouds

Jun 12th, 2013 | Filed under: Infrastructure, Performance, Analytics & Metrics

The world of cash equities trading is changing and will continue to change, says Celent. Brokerages will have to outsource in order to reduce costs and restore their margins: and some of the outsourcing will involve "the cloud."Read More


Investing in Britain’s Infrastructure: With and Without Guarantees

Jan 28th, 2013 | Filed under: Infrastructure, Institutional Investing

The bottom line of EDHEC's study is that there is no need to create new public sector liabilities to get private sector institutions to invest in infrastructure. Read More


More than $3 Trillion AUM for Top 100 Alternative Investment Managers

Jul 25th, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Hedge Fund Strategies, Infrastructure, Institutional Investing, Private Equity, Real Estate

The survey also asked that the asset managers state where their total assets are invested, using four geographical categories: Europe; Central/North America; Asia Pacific; Other. Commodity funds were easily the most heavily invested in C/NA, to the extent of 94 percent of their portfolios. Private equity funds are 61 percent invested in C/NA, and PE FoFs also have the majority of their portfolios there, at 54 percent.Read More


Pension Funds and Blair’s PFI Legacy

Mar 21st, 2012 | Filed under: Infrastructure, Institutional Investing, Social investing

Britain’s Private Finance Initiative has continued through the administrations since Blair’s, and indeed has inspired emulation across the Channel. At the same time, it has stirred up a good deal of criticism, and in November 2011 the Chancellor of the Exchequer announced a plan to reform the PFI. One of the reform proposals is to seek broader participation by pension funds, or in pale bureaucratic jargon, “access a wider range of financing sources.”Read More


Crumbled Portfolios Look to Rebuild with Infrastructure Investments

Feb 9th, 2012 | Filed under: Alpha Strategies, Infrastructure

Infrastructure is a perpetual investment, whether it's rebuilding old, existing underpinnings in developed markets or building the foundations that turn an emerging nation into a developing one. Preqin looks at this lesser known investment that underpins many alternative portfolios.Read More