Browsing: Diversification

Posts Tagged ‘ Diversification ’

The October Effect: A Proxy for Patience

Oct 5th, 2020 | Filed under: Newly Added, What about beta?, Other Issues in Private Investments

By Bill Kelly, CAIA Association CEO Benjamin Graham’s mythical Mr. Market remains alive and well. He continues to always be available, but is often irrational, emotional, and inefficient. These same characteristics embody why he could be looked upon as the de-facto patron saint for the month of October where theRead More


Putting 2020 into Perspective: Diversification May Work Better than You Think

Aug 6th, 2020 | Filed under: CAPM / Alpha Theory, Financial Economics Theory, Newly Added, Risk management, Asset allocation, Asset Allocation Models, Alternative Investments in Context, Institutional Asset Management, Risk Management Strategies & Processes, Hedge Funds, Allocating to A.I.

By Rodney Sullivan, CFA, CAIA, Executive Director, University of Virginia Darden School of Business US recessions are typically accompanied by declines in stock market returns and, of course, 2020 has been no exception. We are once again reminded that investing is not easy leaving many investors to wonder how bestRead More


Politics, Religion, and…Private Equity?

Jul 27th, 2020 | Filed under: Private Equity, Newly Added, Equity Types of Private Equity, What about beta?, Private Investments

By Aaron Filbeck, CAIA, CFA, CIPM, Associate Director of Content Development at CAIA Association Institutional investors have dramatically increased their allocations to alternative investments over the past few decades, including increased allocations to private equity. Private capital allocations remain highest in endowment portfolios, but other institutions, such as family offices andRead More


Variance Risk Premium: What Premium?

Jun 25th, 2020 | Filed under: Newly Added, Alpha Strategies, Risk management, Risk Metrics and Measurement, Alternative Investments in Context, Risk Management Strategies & Processes

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION Investing is akin to fighting in the forever war. There are long periods of peace and prosperity, but investors are frequently drawn into short-term combat, extended battles, and multi-year wars. And the cycle repeats over and over. For some of the foot soldiers,Read More


Pursuing Diversification with Cryptocurrencies

Jun 18th, 2020 | Filed under: Newly Added, The Global Economy & Currencies, Digital currencies, Emerging Alternative Investments, Other Topics in A.I.

By Andrew Keenan, CAIA, CFA, CBP, Assistant Vice President – Valuation Risk and Control at Credit Suisse Overview The recent release of CAIA Association’s seminal report “The Next Decade of Alternative Investments: From Adolescence to Responsible Citizenship” underscored four key tenets for the investment industry to adhere to and emphasizeRead More


Time-varying Volatility Adds a Critical Dimension to Diversification

Apr 21st, 2020 | Filed under: Newly Added, Risk management, The A.I. Industry, Risk Management Strategies & Processes, Allocating to A.I.

By Masao Matsuda, CAIA, FRM, Founder, Crossgates Investment and Risk Management In January 2020, the CAIA New York Chapter organized an event titled “Volatility? Downside Protection? Asset Allocation & Factor Management Tools for the Coming Decade.”[i] In retrospect, the event was uncannily prescient, as just a few months into the newRead More


Did Correlations Among Asset Classes Approach 1 During COVID-19 Crash?

Mar 22nd, 2020 | Filed under: Newly Added, CAIA Alternative Viewpoints

Hossein Kazemi, Ph.D., CFA, Senior Advisor, CAIA Program Did correlations among asset classes approach one during COVID-19 Crash? The short answer is no. Did the benefits of diversification disappear? The short answer is no, again. During the last few weeks, several pundits have resurrected the old argument that, during increased market turbulence,Read More


Diversification: The Only Free 3-Course Meal?

Mar 17th, 2020 | Filed under: Newly Added, Asset allocation, CAIA Alternative Viewpoints, Asset Allocation Models, Allocating to A.I.

By Aaron Filbeck, CAIA, CFA, CIPM | Associate Director, Content Development at CAIA Association Depending on the day this blogpost is published, equity markets could be up 10% or down 10%. I guess timing blogposts is just as hard as timing the market these days. We often refer to diversificationRead More


Diversification Strikes Back!

Mar 13th, 2020 | Filed under: Real Estate, Private Equity, Hedge Fund Strategies, Newly Added, Asset allocation, CAIA Alternative Viewpoints, Asset Allocation Models, Institutional Asset Management, Real Estate Equity Investments, Risk Management Strategies & Processes, Hedge Funds, Private Investments, Real Assets, Allocating to A.I.

By Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development at CAIA Association, and Keith Black, PhD, CFA, CAIA, FDP, Managing Director, Content Strategy at CAIA Association “Diversification is back” – now that’s not a phrase we’ve heard in a long time…long time. Considering recent market performance, we thought thatRead 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 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


Institutional Investors Wary of Passivity

Mar 1st, 2018 | Filed under: Alpha & Beta, Newly Added, Institutional Asset Management, SRI and Clean Energy, Allocating to A.I., Other Topics in A.I.

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