Browsing: Newly Added

Newly Added

Too Big Too Frail 

Apr 23rd, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CAIA CEO The most intractable challenges in society, and life, sometimes subsist in a state of duality. The size and scale of the downside are enormous and almost paralyzing if allowed into our daily psyche. Sometimes however, especially in life, we have finely tuned coping mechanisms that we allow in to keep these thoughts in check. This mental recalibration can be a good thing, especially when put intoRead More


AIMA’s Vision Statement from Hedge Fund Industry Leaders

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

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


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


Oil Price Shocks and Economic Growth

Apr 19th, 2018 | Filed under: Commodities, Commodities, Commodities: Examples, Investing in Commodities, Newly Added, oil

The U.S. is withdrawing from a multilateral agreement with Iran that was aimed at dissuading the Iranian regime from further progress toward nuclearization. In the meantime, the U.S. and its allies have bombed Syria in retaliation for that country’s chemical attacks on its people, and a shake-up in the topRead More


Understanding the Surge in Appraisal Remedies

Apr 17th, 2018 | Filed under: Equity Hedge Funds, Hedge Fund Strategies, Hedge Funds, Newly Added

A new paper by Alexandros L. Seretakis takes a comparative look at appraisal rights in the United States and the European Union, noting along the way that this familiar legal protection mechanism for minority shareholders has become quite high-profile in recent years. Appraisal rights have given rise to “a newRead More


in-i-fish-uh nt (adj.) 

Apr 16th, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CAIA CEO In the good old days of bound books, a dictionary and thesaurus were de rigueur desktop accessories, no matter your stock-in-trade. It is hard to argue with the modern-day convenience of a Siri or Alexa who can define that certain word, or produce the ideal synonym, on-demand. The over-50 crowd, however, might remember and even lament the lost art of searching for the meaning of a word; when found, it was often accompanied by a descriptive picture that rendered the defining words to follow almost superfluous. IfRead More


‘You Kick It’ and the Alternative Investment Industry

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

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


Funds Use Public Info to Complement Private Signals

Apr 12th, 2018 | Filed under: CAPM / Alpha Theory, Equity Hedge Funds, Event-Driven Hedge Funds, Finance & Economics, Financial Economics Theory, Hedge Funds, Newly Added

Alan D. Crane and two colleagues have written a paper on whether and how hedge funds profit from publicly available information, in particular from SEC filings. Crane is an assistant professor at Houston’s Rice University, Jesse H. Jones Graduate School of Business. He and two Rice students, Kevin Crotty andRead More


Options-based Strategies and their Pay-offs

Apr 10th, 2018 | Filed under: Behavioral finance, Finance & Economics, Financial Economics Theory, Newly Added, Risk Management & Operations, Risk Metrics and Measurement

Roberto Obregon, of the Meketa Investment Group, has written a paper (available at SSRN) on the use of options-based equity strategies. Obregon is the author of a number of scholarly papers on alternative strategies, including one last fall on global macro, which he co-authored with Willam Dana. In his optionsRead More


The Giraffe in The Coal Mine 

Apr 9th, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CAIA Association What’s a few dead canaries amongst friends, or maybe miners? Historically, it has meant a highly toxic atmosphere and a time to immediately retreat to safer ground. In the autumn of years since the GFC, the financial markets have witnessed plenty of canary-like warnings, but most have been shrugged off under the TTID and FOMO Twitter hashtags. Well, when the canary has ceded the early warningRead 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


Be Fearful When Everyone is Greedy

Apr 5th, 2018 | Filed under: Allocating to A.I., Alternative Investments in Context, Institutional Asset Management, Newly Added, The A.I. Industry

A new report from Context Capital Partners looks into trends in the alternative investments industry, both among institutions and family offices. It finds continued strong demand for alt investments, as well as a rising demand within the alt world for such emerging strategies as cryptocurrency investments and environmental, social, andRead More


The Realities of Real Assets

Apr 3rd, 2018 | Filed under: Liquid and Fixed Income Real Estate, Newly Added, Real Assets, Real Estate, Real Estate Equity Investments

A London-headquartered specialist consultant, bFinance, has prepared a report on the trends that have emerged over the last decade in the way both investors and managers think about the real assets in portfolios. There are, the paper says, three trends at work. First, investors are becoming both more sophisticated andRead More


Egg Day Segue 

Apr 2nd, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CAIA CEO According to the Gregorian Calendar today is Easter Monday. It is a holiday in many countries around the world and even for the non-celebrants, visual cues abound. In many regions the universal symbol is the decorated egg. While Hallmark may have made this into anRead More


The VC and PE Markets in Canada

Apr 1st, 2018 | Filed under: Equity Types of Private Equity, Newly Added, Private Equity, Private Investments, Venture capital

The Canadian Venture Capital and Private Equity Association (CVCA) has posted what it calls an “overview” of the VC and PE Markets in that country in 2017. It reports growth in both of those markets, although growth at distinct velocities. The report tells us that, on the VC side, CanadaRead More


Finance Theory, Listed Equities, and Liquidity

Mar 29th, 2018 | Filed under: CAPM / Alpha Theory, Finance & Economics, Financial Economics Theory, Newly Added

A recent paper from Robeco discusses whether a liquidity premium exists in the stock market. The authors, David Blitz, Jean-Paul van Brakel, and Milan Vidojevic, conclude that “the evidence for such a premium is, at best, weak.” Less politely, these authors refer to the whole notion of a liquidity premiumRead 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


So Much March Madness

Mar 26th, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CEO, CAIA Association What can the NCAA basketball tournament tell you about your investment portfolio? As it turns out, quite a bit. For those of you who simply don’t care about the annual bracket ritual, it is quite easy to get you up to speed. The bottomRead More


Why Treasury Professionals are Building Cash Reserves

Mar 25th, 2018 | Filed under: Newly Added, Risk management, Risk Management & Operations, Risk Management Strategies & Processes, Risk Metrics and Measurement

The Association of Finance Professionals recently disclosed, via its Corporate Cash Indicators, that U.S. corporations accumulated more cash in the third quarter of 2017 than had been anticipated. This is consistent with other indications: corporations are concerned about the risks of the present environment and are working to ensure theyRead More


Where do chief investment officers come from?

Mar 23rd, 2018 | Filed under: Endowments & Foundations, Institutional Asset Management, Institutional Investing, Newly Added

By Charles Skorina Every year there are about 50 to 100 US nonprofit (tax-exempt) and family office CIO searches and that number will climb as more ultra-high-net-worth families (over $100 million AUM) form offices, create foundations, and hire professional investment talent. PwC forecasts a near doubling in global AUM over nineRead More


What Makes Big Data So … Big?

Mar 22nd, 2018 | Filed under: Algorithmic and high-frequency trading, Business News, Finance & Economics, Newly Added

The term “big data” has become a cliché. One has to remind one’s self that it is a somewhat ill-fitting label. What is new about the world of data isn’t that there is a lot of it; nor that on the software end the processing of data becomes easier overRead More


Central Europe as seen by private equity managers

Mar 20th, 2018 | Filed under: Newly Added, Private Equity, Private Investments

Deloitte has recently posted the results of its survey of how private equity managers see central Europe. A very concise summary of the findings of the survey is this: the PE industry expects that it will be buying CE assets in the coming months, and that it will be borrowingRead More


Trust But Clarify

Mar 19th, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CAIA Association CEO What’s going on here? Wasn’t it just a few short weeks ago that the SEC came out with a self-reporting initiative aimed at advisors who essentially fail to disclose lower fee share classes to their client? This amnesty program was put into place toRead More


The Quants, the Algorithms, and the Performance

Mar 18th, 2018 | Filed under: Allocating to A.I., Alpha & Beta, Benchmarking & Performance Attribution, Hedge Funds, Newly Added

A new paper by J.B. Heaton, forthcoming in the Journal of Financial Transformation, offers a skeptical view of the algorithmic trading of securities, its actuality and its potential. Heaton is a lawyer (admitted to the bars of both Illinois and New York) and has a Ph.D. in finance, University ofRead More


Reducing Dependence on (L)IBOR

Mar 15th, 2018 | Filed under: Finance & Economics, Newly Added, Risk Management & Operations, Risk Metrics and Measurement, The Global Economy & Currencies

A creation of the mid-1980s, the London Interbank Offered rate (LIBOR) became immensely influential over the three decades that followed. It became a reference rate for both finance and commerce for the rate of nearly risk-free interest, and in the process it spawned other IBORs, including EURIBOR and Japan’s TIBOR.Read More


SCOTUS Decision Regarding Distressed Assets, Safe Harbors & Clawbacks

Mar 13th, 2018 | Filed under: Business News, Finance & Economics, Insolvency, Newly Added

The U.S. Supreme Court decision in Merit Management v. FTI Consulting may prove important to distressed asset managers, who need to know when defendants can assert the protection of the “safe harbor” provision of federal bankruptcy law, thus avoiding clawbacks. Section 546(e) of the statute says that a debtor mayRead 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


Irrational Dissonance

Mar 12th, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CEO, CAIA Association Friday was March 9 and not a lot of discussion was had about the infamy of this date going all the way back to 2009. For the few in the market who have maintained some level of perspective, analysis and a concept of whatRead More


The Tipping Point for Alternative Data

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

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


Preqin on the PE Outlook

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

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


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


Whether Vol is High or Low, Gamma Trading Can Exploit Opportunity

Mar 5th, 2018 | Filed under: Hedge Fund Strategies, Hedge Funds, Newly Added

By Alternatives Team at Calamos Investments In 2018, volatility kicked into high gear. So far, there have been 11 days when the S&P 500 has moved at least 1%. Investors may not like the return of volatility, but it can strengthen the tailwinds for the gamma trading we do inRead More


The Year of the (Sleeping) Dog

Mar 5th, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CEO, CAIA Association Welcome to Washington Chairman Powell… All eyes were on his inaugural address to the House Financial Services Committee this week, followed by semiannual remarks to the Senate Banking Committee, and by most accounts he passed with flying colors. Much of the discussion could 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


News from AIMA: Performance and UK Regs

Feb 27th, 2018 | Filed under: Hedge Funds, Newly Added, Risk management, Risk Management & Operations, Risk Management Strategies & Processes, Risk Metrics and Measurement

New research by the Alternative Investment Management Association (AIMA), in collaboration with Preqin, indicates that hedge funds have produced “more consistent and steadier returns than equities or bonds over both the short term and the long term.” The study employed four scales of time: one year, three, five, and 10Read More


A Rhetorical Oracle?

Feb 26th, 2018 | Filed under: Fees, Hedge Fund Industry Trends, Newly Added, Risk Metrics and Measurement, Structure of the Hedge Funds Industry, What about beta?

By Bill Kelly, CEO, CAIA Association Warren Buffett cashed out his bet and the final numbers are in courtesy of the Oracle’s annual shareholder letter. Unfortunately, the most important investment lessons have been completely lost, as the media and the investment sage have mostly used this as an opportunity toRead More


The Unrecognized Risks of Short Vol Strategies

Feb 25th, 2018 | Filed under: Finance & Economics, Financial Economics Theory, Newly Added, Risk Management & Operations, Risk Metrics and Measurement

Vineer Bhansali and Lawrence Harris have written a scholarly paper on what they call the “extraordinary growth of short volatility strategies” since late 2010. A lot of people and institutions seem to have come to the conclusion that spiking volatility is just that. A “spike” on a chart is definitionallyRead More


DB: Investors Newly Optimistic About Hedge Funds

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

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


What Family Offices Want From Alternative Investment Managers

Feb 21st, 2018 | Filed under: Allocating to A.I., Family Offices, High-net-worth investors, Institutional Asset Management, Newly Added

By Diane Harrison Competition within the alternatives sector for family office investments is at an all-time high, as these investors get more comfortable with the range of assets available to them and their general understanding of alternatives rises. Fund managers want to win these wealthy investors over, but often findRead 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


PE Funds and the Causal Arrow

Feb 18th, 2018 | Filed under: Debt Types of Private Equity, Equity Types of Private Equity, Newly Added, Private Investments

A new report published by the Copenhagen Business School looks into the consequence of private equity investment on an industry-by-industry basis. The authors find that “industries where private equity funds invest grow more quickly [than others] in terms of total production and employment, and appear less exposed to aggregate shocks.”Read More


Urgent vs. Important: Barriers to Digitization in Alternative Investing

Feb 15th, 2018 | Filed under: Allocating to A.I., Alpha & Beta, Newly Added, Operations, Risk Management & Operations

KPMG International and CREATE-Research have jointly prepared a report about the digitization imperative for alternative investment management. The report includes within that term both hedge funds and private equity. Early on, its authors list eight key digital innovations that are reconstructing the industry: Application programming interfaces; cognitive technology and machineRead More


PE and VC Opportunities in 21st Century India

Feb 13th, 2018 | Filed under: Currencies, Equity Types of Private Equity, Finance & Economics, Newly Added, Private Equity, Private Investments, The Global Economy & Currencies, Venture capital

ARA Law, a firm based in Mumbai and Bangalore, India, has issued a paper on private equity and venture capital in that country. In a foreword, firm founder Rajesh N. Begur observes that there is a positive dynamic now at work in India’s economy, one that in his view “canRead More


Gold as a Strategic Asset

Feb 11th, 2018 | Filed under: Commodities, Commodities, Commodities: Examples, Gold, Investing in Commodities, Newly Added

The World Gold Council has recently posted its analysis of the continued relevance of gold. As one might expect from the source, the WGC finds that gold is a strategic asset that can play several valuable roles in a portfolio. Toward this end, the paper offers a chart of gold’sRead 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


S&P on Reading VIX

Feb 6th, 2018 | Filed under: Finance & Economics, Financial Economics Theory, Newly Added

S&P Dow Jones Indices has put out a paper offering market participants without patience for “academic rigor” an accessible guide to the so-called “Fear Index,” the VIX, calculated from the prices of a specific basket of S&P options. The contributors to the paper are: Tim Edwards, S&P Global senior director,Read More


What about beta?

Feb 5th, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CAIA Association CEO As the 2018 calendar turned to February, the long-anticipated volatility came back with a vengeance, but why were so many, so surprised.  As long-term investors, I point out what might be the obvious.  The first fissures of this new normal arrived on Friday Feb 2Read More