Browsing: Newly Added

Newly Added

SUNY Scholars: Hedge Funds are Smart about PIPES

Sep 21st, 2017 | Filed under: Equity Hedge Funds, Hedge Funds, Newly Added, Other Issues in Private Investments, Private Investments

Two scholars affiliated with the State University of New York at Albany recently looked into the roles of hedge funds in corporate misreporting. Specifically, they used a database of PIPE issuers. The resulting paper, by Na Dai (Associate Professor of Finance at SUNY) and Alfred Zhu Liu (Assistant Professor ofRead More


Barnes on Swaps Transparency under  MiFID II

Sep 19th, 2017 | Filed under: Commodities, Investing in Commodities, Newly Added, Operations, Risk Management & Operations, Structured Products

A recent blog in the TABB Forum, by Chris Barnes of Clarus Financial Technology, looks at recent developments in the realm of MiFID, and looks forward. The UK’s Financial Conduct Authority in August of this year authorized certain Approved Publication Arrangements (APAs) for reporting under MiFID II.  The authorization ofRead 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


Aon: Alternative Risk Premia Viable for Many

Sep 17th, 2017 | Filed under: Allocating to A.I., Alpha & Beta, Asset Allocation Models, Finance & Economics, Financial Economics Theory, Newly Added

A new report from Aon discusses the contemporary market for alternative risk premia: where it is, how it got here; where it may be headed. The authors, Matthew Towsey and Chris Walvoord, begin with some very basic considerations of what ‘risk premia’ are. They are, on the one hand, theRead 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


Below the Black: A Review of Risk Reduction Strategies

Sep 13th, 2017 | Filed under: Commodities, Commodities, Hedge Fund Strategies, Hedge Funds, Investing in Commodities, Macro and Managed Futures Funds, Newly Added, Risk management, Risk Management & Operations, Risk Management Strategies & Processes, Risk Metrics and Measurement

Excerpted from the Alternative Investment Analyst Review, Volume 1, Issue 4 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


M&F Worldwide: Not Just for Squeeze Outs Anymore

Sep 12th, 2017 | Filed under: Equity Hedge Funds, Event-Driven Hedge Funds, Hedge Fund Strategies, Hedge Funds, Newly Added

In 2014, hearing litigation over the fate of M&F Worldwide, the Delaware Supreme Court set out rules as to what a controlling shareholder has to do in order to keep his/its decisions within the safe domain of the “business judgment rule.” Last month, in a decision that may be ofRead 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


Wide Range of Investors Has Wide Range of Opinions on their Managers

Sep 10th, 2017 | Filed under: Allocating to A.I., Institutional Asset Management, Institutional Investing, Newly Added, The A.I. Industry

Intralinks, in partnership with Global Fund Media, has surveyed the opinions of limited partners: they’ve been asking LPs what they think about their GPs/managers in the alternative investment context. The bottom line of the survey is that LPs are looking in the near future to increase their allocations in alternatives.Read More


Sovereign Wealth Funds: Partners and Capability

Sep 7th, 2017 | Filed under: Allocating to A.I., Alpha & Beta, Institutional Asset Management, Institutional Investing, Newly Added

Sometimes it pays to read footnotes and end matter, because that turns out to be where the story is. Bocconi University’s Sovereign Investment Lab has published its latest annual report on sovereign wealth funds, and this gives us a case in point. The report says that 2016 was far fromRead More


The Consequences of Auditing the Auditors

Sep 6th, 2017 | Filed under: Behavioral finance, Finance & Economics, Newly Added

Nemit Shroff, an associate professor of accounting at the Massachusetts Institute of Technology, Sloan School of Management, has written a study of the consequences of auditing for the auditees. He has concluded that the Public Company Accounting Oversight Board (PCAOB) “adds significant value to the financial reporting process,” with aRead More


Investor Sentiment: Fees, Redemptions, Structures

Sep 4th, 2017 | Filed under: Alternative Investments in Context, Hedge Funds, Industry Size & Managers, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

Credit Suisse, in its new report on its mid-year survey of hedge fund investor sentiment, says that there is “continued appetite to allocate to hedge funds” and that there is increased interest, especially, in quantitative strategies. Specifically, 81% of investors say that they will likely make allocations to hedge fundsRead More


High-Frequency Trading and Spoofing   

Aug 31st, 2017 | Filed under: Algorithmic and high-frequency trading, Business News, Commodities, Investing in Commodities, Newly Added, Risk Management & Operations

Six years ago Michael Coscia placed orders through the CME Group’s Globex platform via a trading algorithm that amounted to “spoofing.” He placed both large and small orders in the copper market, for example, with the large orders (cancelled within milliseconds) designed to create the illusion of market movement inRead 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


NEPC Surveys E&F Managers About Alternative Investments

Aug 27th, 2017 | Filed under: Allocating to A.I., Endowments & Foundations, Institutional Asset Management, Institutional Investing, Newly Added, The A.I. Industry

NEPC, the investment consulting group that caters especially to endowments and foundations, has posted a survey about what such institutions think of marketable alternatives. This broad category “marketable alternatives” includes direct hedge funds, funds of hedge funds, liquid alternatives, and global asset allocation. Eighty-seven percent of the E&F respondents inRead More


Transparency in Alternative Investing

Aug 24th, 2017 | Filed under: Newly Added, Risk management, Risk Management Strategies & Processes

In February of this year, the Economist Intelligence Unit surveyed 200 senior asset managers and institutional investor executives to learn what factors are most important in the way they make their decisions. Several different types of institution were involved, including hedge funds, private equity firms, insurance companies, and nonprofits. Also,Read More


SITUATIONAL AWARENESS: INVESTMENT PERSPECTIVE INTENSIFIED

Aug 23rd, 2017 | Filed under: Newly Added

By Diane Harrison Situational awareness means honing your ability to analyze the surrounding environment as an automatic practice while carrying on regular activities. The U.S. Coast Guard defines situational awareness as the ability to identify, process, and comprehend the critical elements of information about what is happening with regards toRead More


Jacobs, Levy, and Markowitz on Portfolios

Aug 22nd, 2017 | Filed under: CAPM / Alpha Theory, Finance & Economics, Financial Economics Theory, Newly Added

Bruce Jacobs and Kenneth Levy, the founders and Chief Investment Officers of Jacobs Levy Equity Management, have brought out a new and considerably thickened edition of their classic collection of articles on equity investment. This second edition of Equity Management contains all 15 articles from the original, and 24 ofRead More


Risk Parity: Is it a Strategy for a Sprint or a Marathon?

Aug 20th, 2017 | Filed under: Newly Added, Risk Management Strategies & Processes

Excerpted from the Alternative Investment Analyst Review, Volume 1, Issue 4 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


Half-Time Report on PwC’s Vision for Asset Management

Aug 20th, 2017 | Filed under: Fees, Industry Size & Managers, Newly Added, Regulatory, Regulatory Environment

Three years ago PwC published a paper on what they expect the asset management world will look like in 2020 – which is, as it happens, three years from now. We have reached the half-point in the hypothetical timeline. Much in the report still holds up, though of course itRead 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


Build Value: Don’t Just Meet Quarterly Targets!

Aug 15th, 2017 | Filed under: Allocating to A.I., Alternative Investments in Context, Institutional Asset Management, Newly Added, The A.I. Industry

FCLT Global, a new not-for-profit organization that seeks to promote long-term thinking in business and finance, has issued a manifesto, “Rising to the Challenge of Short-Termism.” The paper was written by Dominic Barton, Jonathan Bailer, and Joshua Zoffer. Each is affiliated with McKinsey & Company, which is one of theRead More


Boston College’s CRR on Alternatives in Pension Portfolios

Aug 13th, 2017 | Filed under: Asset Allocation Models, Institutional Asset Management, Newly Added, The A.I. Industry

The Center for Retirement Research at Boston College has put out a white paper about public pensions and alternative investments.  It asks two questions: which plans have made the largest shift into alternatives? And, how has that shift mattered to their returns and risk? The report begins with the observationRead More


Real Estate Tops the Willis Alternative Investment League Table

Aug 10th, 2017 | Filed under: Hedge Funds, Industry Size & Managers, Newly Added, The A.I. Industry

Willis Towers Watson (NASDAQ: WLTW) recently posted its Global Alternatives Survey. WLTW is a consultancy with a long history, roots going back to 1828, and that now has 40,000 employees serving clients in 140 countries. The gist of its new report is that the alternatives asset industry has grown toRead More


Networks, Modeling, and Funds of Funds

Aug 8th, 2017 | Filed under: Alternative Investments in Context, Finance & Economics, Financial Economics Theory, Newly Added, The A.I. Industry

Two scholars affiliated with FERI Trust, a leading investment manager of the German-speaking countries of Europe, have written a study of hedge fund strategies that uses a “network-based analysis” thereof. The two authors, Eduard Baitinger and Thomas Maier, argue that hedge fund strategies show “numerous network-based properties” which help explainRead More


Boom or Bust? Are Advisors Ready For Baby Boomers To Retire?

Aug 7th, 2017 | Filed under: Newly Added

By Diane Harrison According to US census figures, Baby Boomers (defined as those born between 1946 and 1964) represent about 28% of the US population in 2017, and are currently between 53 and 71 years old. Give or take an error margin of several thousand, this translates to about 76Read More


A Simple Approach to the Management of Endowments

Aug 7th, 2017 | Filed under: Allocating to A.I., Asset allocation, Asset Allocation Models, Endowments & Foundations, Institutional Asset Management, Newly Added

By Hossein Kazemi & Kathryn Wilkens, CAIA Endowments and foundations are tax exempt and charitable organizations that rely on permanent pools of capital to fund their activities. These pools of capital are owned by institutions such as colleges, universities, hospitals, museums, scientific organizations, charitable entities, and religious institutions. When well-fundedRead 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


Til and Heckinger on Commodity Debacles, Part I

Aug 3rd, 2017 | Filed under: Commodities, Commodities, Commodities: Examples, Energy, Investing in Commodities, Newly Added

A new paper available at SSRN looks at two infamous commodity industry melt-downs: Amaranth and MF Global. It offers a diagnosis of each. Hilary Till, of the EDHEC – Risk Institute, and Richard Heckinger, of the Federal Reserve Bank of Chicago, share the by-line. They acknowledge research assistance from KatherineRead 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


Hedge Fund Gigantism is Not Necessary

Jul 30th, 2017 | Filed under: Fees, Hedge Funds, Newly Added, Seeding/early-stage, Structure of the Hedge Funds Industry

A joint survey by the Alternative Investment Management Association and GPP, the financial services firm formerly known as Global Prime Partners, disaggregates the hedge fund industry by size. It finds that the dynamics of the smallest (emerging-funds) sector looks very different once the “billion dollar club” and even the medium-sizedRead More


Hedge Funds in the United Kingdom

Jul 27th, 2017 | Filed under: Alternative Investments in Context, Industry Size & Managers, Newly Added, The A.I. Industry

Just prior to the June 8 election in the UK this year, Preqin took a look at the state of the hedge fund industry there. Interest in this subject matter is high for the alternative industry globally, given London’s centrality and the great deal that is riding on how theRead More


AIMA Gets Its Groove On: Two New Guides

Jul 25th, 2017 | Filed under: Hedge Fund Industry Trends, Newly Added, Structure of the Hedge Funds Industry

The Alternative Investment Management Association, the global AI industry group, has been busy of late. Its recent publications include a Best Execution Guide for the European Union’s revised Markets in Financial Instruments Directive (MiFID 2) and a guide to fund administration. Fund Administration The AIMA guide on fund administration reworksRead More


Lessons from University Endowments

Jul 23rd, 2017 | Filed under: Allocating to A.I., Asset allocation, Asset Allocation Models, Endowments & Foundations, Institutional Asset Management, Institutional Investing, Newly Added

In a recent article for The Journal of Investment Consulting, John Mulvey and Margaret Holen look at the practice of asset allocation among large U.S. university endowments. They focus on asset category definitions in the hope of throwing some light on “the movement to define asset categories with reference toRead 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


Preqin and NXT Capital on the Filling of a Post-GFC Vacuum

Jul 20th, 2017 | Filed under: Allocating to A.I., Institutional Asset Management, Newly Added

Preqin, in collaboration with NXT Capital, has surveyed institutional investors about the U.S. lower middle-market direct lending space, and has issued a report on their attitudes. The gist of the report is that investor appetite for the lower middle market “has steadily gained momentum in the past decade and …Read More


A Critique of the Listed Infrastructure Sector

Jul 18th, 2017 | Filed under: Newly Added, Operationally Intensive Real Assets, Real Assets

A new study by EDHECinfra (EDHEC’s infrastructure institute based in Singapore), has a striking point of view on the whole “listed infrastructure” sector, which it says is based on the “fallacy of composition.” In economics and in logic, the term “fallacy of composition” refers to the general prejudice that ifRead More


Skin in the Game: Testing a Cliché

Jul 16th, 2017 | Filed under: Alternative Investments in Context, Asset Managers, Hedge Funds, Industry Size & Managers, Newly Added

One of the most well-worn clichés in the hedge fund industry is the phrase “skin in the game.” Investors want managers who have “skin in the game,” that is, managers who risk/hedge their own money the same way they are risking/investing their outside investors’ money. A recent paper by ArpitRead More


Real Estate: A Global Outlook

Jul 13th, 2017 | Filed under: Infrastructure, Newly Added, Operationally Intensive Real Assets, Real Assets

PWC and the Urban Land Institute have jointly issued a report on “emerging trends in real estate” around the globe, which stresses that real estate’s attraction as an investment, even as a cross-border investment, has held up notwithstanding unprecedented levels of concern about geopolitics. The “global drift back to domesticRead 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


Pensions: On Mortality and Long-Duration Corporate Bonds

Jul 11th, 2017 | Filed under: Allocating to A.I., Asset allocation, Asset Allocation Models, Newly Added

Milliman, an actuarial and consulting firm headquartered in Seattle, has completed a white paper on corporate pension funding based on its 17th annual analysis of the disclosures of the “Milliman 100,” that is, of the 100 biggest corporate defined benefit plan sponsors in the U.S. The funded ratio of theseRead More


Alternative Risk Premia Investing

Jul 9th, 2017 | Filed under: Allocating to A.I., Alpha & Beta, Asset Allocation Models, Newly Added

Unigestion has posted a research paper by Olivier Blin, Joan Lee, and Jérôme Teiletche, on “some of the practical considerations that should help investors get the most out of their allocation to” alternative risk premia (ARP) strategies. Unigestion is a boutique asset manager, and Blin is its head of crossRead More


Accounting Issues and Investing in Timberland

Jul 6th, 2017 | Filed under: Natural Resources and Land, Newly Added, Real Assets

On May 3, 2017, Ernst & Young made available the bullet points for a presentation on the “accounting, financial reporting, and regulatory considerations” affecting investment vehicles in this space. Mark to market or historic cost In general, the presentation says, the accounting treatment depends on where on a spectrum ofRead 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


Timberland Investors See 0% Growth Rate for Harvesting Costs

Jul 3rd, 2017 | Filed under: Natural Resources and Land, Newly Added, Real Assets

Today, we’ll look at  KPMG’s effort to determine who exactly the investors in timberland are, what their underwriting assumptions are, and what are their expectations for the coming 12 months. The firms surveyed included North America’s timberland investment market participants with five different structures: appraisal or consulting organizations; integrated forestRead More


New Numbers on Catastrophe Bond Insurance

Jun 27th, 2017 | Filed under: Newly Added, Risk management, Risk Management & Operations, Structured Products

A new report from an Alternative Risk Transfer research service, Artemis, looks at the catastrophe bond and insurance-linked securities market in the (recor- breaking) first quarter of 2017. Bond and ILS issuance reached the unprecedented level of $2.76 billion this Q1. That involved 25 tranches of notes from 14 deals,Read More


THE BOOK TOUR APPROACH TO LAUNCHING A NEW FUND

Jun 26th, 2017 | Filed under: Newly Added

By Diane Harrison The only thing harder than running a successful alternatives fund is launching it. Getting noticed in the crowded and naturally skeptical alternatives market can be a Herculean feat without a plan of implementation.  It goes without saying that having a great investment strategy, financial backing, and well-craftedRead More


New Technologies Adding to Pressure on Fees

Jun 25th, 2017 | Filed under: Fees, Hedge Funds, Newly Added, Structure of the Hedge Funds Industry

A new paper proposes that emerging technologies (blockchains, Big Data and artificial intelligence) have increased pressure on the traditional hedge fund fee structure of 2 + 20. Its author is Wulf A. Kaal, an Associate Professor at the University of St. Thomas and director of the Private Investment Fund Institute.Read More