Browsing: Newly Added

Newly Added

A Talk on the What and Whys of Cryptocurrencies

Jun 20th, 2018 | Filed under: Currencies, Digital currencies, Emerging Alternative Investments, Finance & Economics, Newly Added, Other Topics in A.I., The Global Economy & Currencies

The Battle of the Quants came to New York City on Wednesday, June 20, and the CAIA Association was one of its media sponsors. Much of the event involved cryptocurrencies, including an exchange between John D’Agostino (the global head of investor engagement at DMS Governance) and Nouriel Roubini, Chairman ofRead More


Three Drivers of Hedge Fund Consolidation

Jun 19th, 2018 | Filed under: Hedge Fund Industry Trends, Hedge Funds, Newly Added, Structure of the Hedge Funds Industry

A new report from Navigant Capital Advisors, a Chicago-based investment-banking service provider, says that hedge funds will soon catch a wave of industry consolidation, largely through mergers and acquisitions. Navigant offers both sell-side and buy-side advisory services and well as private placement transactions and related services. Its report, Hedge FundRead More


Hedge Fund Hegemony And How To Handle It

Jun 18th, 2018 | Filed under: Hedge Funds, Investor Relations, Newly Added, Sales & Marketing in the AI Industry

By Diane Harrison Hegemony, holding a slightly sinister meaning in most contexts, defines an asymmetrical power relationship, in which there is social, cultural, ideological, or economic influence exerted by one group over others. Where better to see hegemony in practice than in the world of hedge funds, when the behemothRead More


FORE! 

Jun 18th, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CEO, CAIA Association Certain words in the world of sports are universally recognized and understood, even for those who have never kicked a football or swung a golf club. The 2018 FIFA World Cup Matches began this weekend and not many of us will need a definition for GOOOAAALLL. Similarly, the annual US Open Golf Championship wrappedRead More


Blockchains: Hyped but Here to Stay

Jun 17th, 2018 | Filed under: Newly Added, Operations, Risk Management & Operations

In a recent white paper, a trend analyst and a portfolio manager at Robeco put their heads together to look at the value of blockchains, or more formally of “distributed ledger technology,” in the financial world. Jeroen van Oerle (the analyst) and Patrick Iemmens (the manager) contend that there isRead More


What has private equity done for state pension funds lately?

Jun 14th, 2018 | Filed under: Allocating to A.I., Debt Types of Private Equity, Equity Types of Private Equity, Institutional Asset Management, Newly Added, Private Equity, Private Investments

Los Angeles-based Cliffwater LLC has recently updated a report it prepared a year ago on how state pension systems have fared by way of their investments in private equity. The report as updated finds that PE created on average a 10.7% annualized return across 21 state pensions over its 16-yearRead More


Africa Still Rising (but Patience May Be Required)

Jun 12th, 2018 | Filed under: Emerging Alternative Investments, Emerging markets, High-net-worth investors, Newly Added, Other Topics in A.I., Private Equity, Private Investments, The Global Economy & Currencies

The Emerging Markets Private Equity Association, in a new report, suggests that the “Africa Rising” narrative of a few years ago is behind us. Africa is seen still as having enormous potential. But the report also says, “the commodity downturn of the last several years has had a severe impactRead More


Water, Water Everywhere…

Jun 11th, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CEO, CAIA Association  It was 220 years ago when Samuel Taylor Coleridge wrote and published his now famous poem The Rime of the Ancient Mariner. Perhaps few among us could name this poet, but this specific work and the referenced line of prose live on in infamy and areRead More


The View from Amundi: Absolute Return and Factor Models

Jun 10th, 2018 | Filed under: CAPM / Alpha Theory, Finance & Economics, Newly Added

On May 30, CAIA France sponsored a panel discussion on absolute return strategies, held at the headquarters of Amundi Asset Management, on the Boulevard Pasteur in Paris. Frederic Hoogveld, the head of investment specialists, index and smart beta for Amundi, spoke that evening on dynamic factor allocation. As a review:Read More


Alternative Uses of the Fixed-Income Markets

Jun 7th, 2018 | Filed under: Allocating to A.I., Institutional Asset Management, Institutional Investing, Newly Added

Aviva Investors has prepared a research report on absolute return fixed income. The report, called “Building Resilience into Portfolios,” explains that the traditional use of fixed income in a portfolio is quite straightforward. That use generally involves a long position on debt of various sorts (sovereign, corporate, developed or emergingRead More


Manager Selection Through A ‘Welkian’ Lens

Jun 6th, 2018 | Filed under: Investor Relations, Newly Added, Sales & Marketing in the AI Industry

One of the most successful variety shows on television was the Lawrence Welk Show. Debuting in 1955, the show ran for 28 straight years, compiling 1065 episodes, then was picked up in syndication and continues running today on PBS. Combining musical skits and featured guest performers, the show established itselfRead More


AQR Makes the Case for a VRP Strategy

Jun 5th, 2018 | Filed under: Behavioral finance, Finance & Economics, Financial Economics Theory, Newly Added

AQR Capital Management, the Greenwich, CT-based global investment firm, has posted a new discussion of the volatility risk premium and of the advantages of strategies based thereon. In principle the premium would disappear if markets efficiently estimated the probability of significant losses. But it remains, because investors are risk averseRead More


It’s the Volatility (of Volatility), Stupid! 

Jun 4th, 2018 | Filed under: Newly Added, What about beta?

By Bill Kelly, CEO, CAIA Association Just about 25 years ago a political strategist named James Carville brought this phrase into the common lexicon when he used the “Economy” as the initial punchline. The resonation of that simple phrase is arguably what got Bill Clinton into the White House. At just about that same time and a short 1,000 miles away from Hope, Ark., Professor RobertRead More


Crumbling infrastructure offers mid-market investment opportunities

Jun 3rd, 2018 | Filed under: Infrastructure, Newly Added, Operationally Intensive Real Assets, Real Assets, Socially responsible investing, SRI and Clean Energy

Deteriorating infrastructure and potential for investment is the topic of a new white paper by Fiera Capital, a Canadian investment management firm. Infrastructure is generally understood to involve physical assets that provide a public service, including those most vital to economic development. The category includes water and waste-water systems, highwaysRead More


Quants and Fundamentalists Unite!

May 31st, 2018 | Filed under: Algorithmic and high-frequency trading, Fees, Hedge Fund Industry Trends, Hedge Funds, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

By standard definition, a “quantitative” investing strategy is one that selects securities using customized models, often algorithm-driven and thus on the operational level independent of human judgment. Again working from standard definitions, a “fundamental” investing strategy involves an examination of whether the entity issuing a security (corporation, sovereign, or other)Read More


Closing the Gender Gap in Alternative Investments

May 29th, 2018 | Filed under: Asset Managers, Industry Size & Managers, Newly Added, Other Topics in A.I., The A.I. Industry

The Emerging Market Private Equity Association (EMPEA) has announced its first initiative aimed at closing the gender gap, which it calls its Gender Parity Acceleration Working Group. EMPEA has 300 member firms, including both general partners and limited parties, who are invested in more than 130 countries around the globeRead More


Safety First?

May 29th, 2018 | Filed under: Newly Added, What about beta?

By: CAIA CEO Bill Kelly. Dateline, Guoliang Tunnel Road in China. This stretch of highway is a perennial favorite in the annual ranking of the world’s most dangerous roadways. Surprisingly, it ceded the top spot in that category this year to the North Yungas Road in Bolivia, but some pictures are simply not suitable for publication in this family-friendly blog. The path from Point A to Point B is rarely a straight line and the obstacles encounteredRead More


The Irrelevance of Dodd-Frank & Memories of the Crisis

May 28th, 2018 | Filed under: Credit Derivatives, Newly Added, Risk Management & Operations, Risk Management Strategies & Processes, Structured Credit Products, Structured Products

There has been some political excitement of late concerning the repeal of part of the Dodd-Frank statute, which was the great post-crisis reform bill that sought to remake the financial regulatory system in the United States. On Thursday, May 24, President Trump signed a bill that exempts dozens of banksRead More


Eurekahedge on Japan as an Investment Mandate

May 24th, 2018 | Filed under: Allocating to A.I., Institutional Asset Management, Institutional Investing, Macroeconomics, Newly Added, The Global Economy & Currencies

Eurekahedge has recently concluded its fifth annual survey of asset managers with mandates to invest in Japan. In the words of Eurekahedge chairman and CEO, Satoshi Iwanaga: “Survey results for 2018 suggest that central bank normalization is still a long way off in Japan, with investors continuing to reduce theirRead More


Greenwich Associates on Exchange-Listed Options

May 22nd, 2018 | Filed under: Newly Added, Risk management, Risk Management & Operations, Risk Management Strategies & Processes, Risk Metrics and Measurement

Greenwich Associates has produced research, commissioned by the Options Industry Council, about the way institutional investors understand exchange listed options. Greenwich concludes that underperforming institutions, including pension plans and endowments, “should be considering investments in options strategies as a means to improve risk-adjusted returns.” Institutions not currently doing so mayRead More


The All-Inclusive Buffet

May 21st, 2018 | Filed under: Newly Added, What about beta?

By: Bill Kelly, CEO, CAIA Association We have all seen it. The Sunday brunch, the Caribbean vacation, or the cruise to nowhere or everywhere that touts the all-inclusive offer when it comes to food and drink. The behavioral aspects of these arrangements are common and predictable. More choice often yields toRead More


Private Debt and Impact Investors

May 20th, 2018 | Filed under: Newly Added, Other Issues in Private Investments, Other Topics in A.I., Private Investments, Social investing, SRI and Clean Energy

A new study by the Symbiotics and GIIN research teams looks at private debt impact funds (PDIFs); that is, “independent investment vehicles that allocate on average more than 85% of their portfolios to private debt” and that look to the environmental and/or social impact their allocations will have.   The goalRead More


KPMG on Real Estate Funds

May 17th, 2018 | Filed under: Liquid and Fixed Income Real Estate, Newly Added, Real Assets, Real Estate, Real Estate Equity Investments, Risk Management & Operations

The outsourcing of fund administration tasks in real estate is not a new idea. But, as KPMG says in a new paper, the marketplace has been slow to take the administrators up on their offerings.  So it may still be the wave of the future even though it has aRead More


Operating Expenses, Strategies, and Scale

May 15th, 2018 | Filed under: Allocating to A.I., Benchmarking & Performance Attribution, Hedge Funds, Newly Added, Structure of the Hedge Funds Industry

Meketa Investment Group has issued a paper on the state of hedge fund operating expenses, the point of which is to offer actual and potential fund investors and their managers alike a benchmarking tool. By definition operating costs are those costs associated with day-to-day operations and the needs of anRead More


A Microfinance Fund for Central Java, Indonesia

May 13th, 2018 | Filed under: Digital currencies, Emerging Alternative Investments, Microfinance, Newly Added, Other Topics in A.I.

Blossom Finance, an investment consultancy that describes its business model as “commercial financing with social benefits,” announced recently open enrollment for an Islamic microfinance fund designed to bolster micro-businesses and traditional market sellers in the province of Central Java, Indonesia. This will be a crypto-currency infused fund: participants can investRead More


Distressed Digital Exchanges as Buyout Targets

May 10th, 2018 | Filed under: Digital currencies, Emerging Alternative Investments, Newly Added, Other Topics in A.I.

Tanzeel Akhtar has written a story for BraveNewCoin in which she discusses the availability of distressed digital exchanges as a means by which large companies can cheaply gain their own toeholds in the cryptocurrency world. Surely, risk arbs in the world of alternative investment will find this paper a valuableRead More


Crowdfunding in the Absence of Liquidity Constraints

May 8th, 2018 | Filed under: Crowdfunding, Emerging Alternative Investments, Newly Added, Other Topics in A.I.

A forthcoming issue of the Journal of the European Economic Association will carry a study arguing that crowdfunding in the absence of liquidity constraints is a superior method of equity financing–superior to “traditional financing forms,” that is, unless those traditional financiers are fully competitive and perfectly informed.  By one estimate,Read More


The CBOE and VIX: The Appearance of Manipulation

May 6th, 2018 | Filed under: Business News, Commodities, Finance & Economics, Newly Added

On April 23, 2018, the chairman and the president of the Chicago Board Options Exchange issued an open letter to address concerns that the CBOE Volatility Index (VIX) is subject to manipulation. There were at least two incitements behind this letter. First, its authors, Chairman Ed Tilly and President ChrisRead More


Thoughts on the European Regulation on Short Selling

May 3rd, 2018 | Filed under: Equity Hedge Funds, Hedge Fund Regulation, Hedge Funds, Newly Added, Regulatory, Regulatory Environment, The A.I. Industry

A new paper by Marco Dell’Erba and Giovanni Patti takes a look at a recent crisis involving the stock of the Monte dei Paschi di Siena (MPS), as a way of studying the pragmatics of the European Regulation on short selling (SSR). Dell’Urba is affiliated with the New York UniversityRead More


Revising the ICAPM to Reflect Effects of Style Investing

May 1st, 2018 | Filed under: CAPM / Alpha Theory, Finance & Economics, Financial Economics Theory, Newly Added

A recent paper by Michael Stutzer, of the University of Colorado at Boulder, Leeds School of Business, suggests that the intertemporal version of the capital asset pricing model (ICAPM) needs some revision in light of the market dominance of style investors. A more full statement of that might be: itRead More


The Role Dividends Can Play in International Equity Investing

Apr 30th, 2018 | Filed under: Equity Hedge Funds, Hedge Funds, Newly Added

Summary Dividend yielding stocks can make a meaningful contribution to a portfolio in international markets as well as domestic. Higher returns are not always associated with higher risk. High dividend investing has been beneficial over most years and investment horizons. An emphasis on dividends appears to contribute across cycles, sectorsRead More


China-US Trade War and Other Worries

Apr 29th, 2018 | Filed under: Event-Driven Hedge Funds, Hedge Funds, Industry Size & Managers, Newly Added, The A.I. Industry

The Eurekahedge April 2018 report says that hedge funds were down in the first quarter of the year (-0.13%). This is the industry’s worst performance since Q1 2016. The steepest performance-based losses by regional mandate were those of the North American funds, they lost $1.2 billion. Meanwhile, asset inflows remainedRead More


WisdomTree on the Success of its Rate-Hedge Agg Suite

Apr 26th, 2018 | Filed under: Newly Added, Structured Credit Products, Structured Products

The path to higher rates has not been a smooth one, but interest rates in the United States are now higher than they have been since the global financial crisis and they may well become higher than they are now. What should traders or investors do about this? How toRead More


What Constitutes Price Manipulation?

Apr 24th, 2018 | Filed under: Commodities, Commodities: Examples, Energy, Newly Added, Regulatory Environment, The A.I. Industry

The two commissions that serve as market enforcers in the United States, the Commodity Futures Exchange Commission and the Securities Exchange Commission, agree on a lot. (As, indeed, one would hope, since their work has considerable overlap.) One of the points on which the commissions have general agreement is theRead More


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