Browsing: Allocating to A.I.

Allocating to A.I.

Be Direct with Me, Please!

Mar 19th, 2020 | Filed under: Newly Added, Private Equity, Institutional Investing, Venture capital, Equity Types of Private Equity, High-net-worth investors, Endowments & Foundations, Private Investments, Family Offices

By Aaron Filbeck, CAIA, CFA, CIPM Associate Director, Content Development at CAIA Association Original Article: “Direct Investments” by Paul Kenny, AIAR Volume 8, Issue 3 Viewpoint Author: Aaron Filbeck, CFA, CAIA, CIPM Excerpted from the Alternative Investment Analyst Review, Volume 8, Issue 3 The Alternative Investment Analyst Review is theRead More


‘Access to private capital benefits should not require premier status’

Mar 19th, 2020 | Filed under: Newly Added, Asset allocation, Asset Allocation Models, Institutional Asset Management

John Bowman, CFA, Senior Managing Director at CAIA Association “If the devil can quote Scripture, in his spare time he might be working on private capital return methodology.” So uttered Bill Elfers in 1995, founder of Greylock Capital and arguably modern venture capital itself. Eleven years later in 2006, HowardRead More


Diversification: The Only Free 3-Course Meal?

Mar 17th, 2020 | Filed under: Newly Added, Asset allocation, 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


ESG ETFs: A Warning About Opacity

Mar 15th, 2020 | Filed under: Newly Added, ESG, The A.I. Industry, Liquid Alternative Investiments, Liquid Alts, ETFs, Other Topics in A.I.

A recent paper by two legal scholars warns of the absence of transparency, of the opacity, that investors may face in ESG funds and ESG exchange-traded funds. “Buyer Beware: Variation and Opacity in ESG ad ESG Index Funds,” is the work of Dana Brackman Reiser and Anne M. Tucker, whoRead More


Diversification Strikes Back!

Mar 13th, 2020 | Filed under: Newly Added, Real Estate, Private Equity, Hedge Fund Strategies, Asset allocation, Hedge Funds, Asset Allocation Models, Institutional Asset Management, Private Investments, Real Estate Equity Investments, Risk Management Strategies & Processes, 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


Positioning for Late Cycle with Defensive Equity

Mar 12th, 2020 | Filed under: Newly Added, Allocating to A.I.

By Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development at CAIA Association Excerpted from the Alternative Investment Analyst Review, Volume 8, Issue 2 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 MembershipRead More


3 Threats to Hedge Funds

Mar 8th, 2020 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Regulation, Hedge Fund Strategies, The A.I. Industry, Liquid Alternative Investiments, Regulatory Environment, Hedge Funds, Liquid Alts, Fees, Allocating to A.I.

A recent paper by a scholar at Tilburg University and a market participant at Robeco outlines the difficulties that the hedge fund industry has faced over the last decade. These problems arose, at least in part, from the democratization of alternative investing. There are three important challenges to the hedgeRead More


Are the Robots Really Taking Over?

Mar 5th, 2020 | Filed under: Newly Added, Technology, Fintech, Artificial Intelligence, Machine Learning, Hedge Funds, Asset Allocation Models, Allocating to A.I., Other Topics in A.I.

By Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development at CAIA Association Excerpted from the Alternative Investment Analyst Review, Volume 8, Issue 3 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 whileRead More


ESG vs Low-Carbon Investing

Mar 1st, 2020 | Filed under: Newly Added, ESG, The A.I. Industry, Liquid Alternative Investiments, Liquid Alts, ETFs, Allocating to A.I., Other Topics in A.I.

By Nicolas Rabener of FactorResearch @FactorResearch INTRODUCTION Investors seeking exposure to global equities with a low carbon footprint could consider the iShares MSCI ACWI Low Carbon ETF (CRBN) or SPDR MSCI ACWI Low Carbon ETF (LOWC). CRBN has $500 million of assets under management, compared with $90 million for LOWC.Read More


Real Assets ‘Inception:’ Diversification within Diversification

Feb 27th, 2020 | Filed under: Newly Added, Consultants, Real Estate, Liquid and Fixed Income Real Estate, Institutional Investing, Risk management, Asset allocation, Natural Resources and Land, Asset Allocation Models, Operationally Intensive Real Assets, Endowments & Foundations, Institutional Asset Management, Real Estate Equity Investments, Risk Management Strategies & Processes, Real Assets

By Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development at CAIA Association Excerpted from the Alternative Investment Analyst Review, Volume 8, 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 MembershipRead More


Wall Street Tackles Sustainable Development Goals

Feb 25th, 2020 | Filed under: Newly Added, ESG, Retail Investing, The A.I. Industry, Institutional Investing, Socially responsible investing, Institutional Asset Management, SRI and Clean Energy, Other Topics in A.I.

In 2015 the United Nations defined 17 Sustainable Development Goals [no poverty, no hunger, health & well-being, etc.] along with 169 targets that were devised to allow for quantitative measurement of progress. It also set 2030 as the bull’s eye for the attainment of the goals. Since governments alone areRead More


Avoiding Silver Bullets

Feb 24th, 2020 | Filed under: Newly Added, What about beta?, Retail Investing, Liquid Alternative Investiments, Hedge Funds, Liquid Alts, Smart Beta, Allocating to A.I., Other Topics in A.I.

By Aaron Filbeck, CFA, CAIA, CIPM – Associate Director, Content Development at CAIA Association Whether it’s that some retail versions of alternative investments have not lived up to their private counterparts, or that retail investors may be last in the buffet line for private placements, there are several arguments againstRead More


Alpha Comes in Waves

Feb 20th, 2020 | Filed under: Newly Added, Retail Investing, The A.I. Industry, Liquid Alternative Investiments, Alternative Beta & Hedge Fund Replication, Hedge Funds, Commodities, Smart Beta, Structure of the Hedge Funds Industry, Allocating to A.I.

The brief history of replication funds may already be divided into three waves, the third of which is still in formation. The first wave was about democratization: putting hedge fund strategies in the hands of people who cannot meet the accreditation requirements to invest in hedge funds proper, or ofRead More


The Future of Hedge Fund Fees

Feb 18th, 2020 | Filed under: Newly Added, Hedge Fund Industry Trends, Consultants, The A.I. Industry, Institutional Investing, Hedge Funds, High-net-worth investors, Endowments & Foundations, Institutional Asset Management, Fees, Family Offices, Structure of the Hedge Funds Industry

We can, in a speculative mood, ask ourselves, “Will hedge fund fees continue to drop or have they reached an equilibrium after the decline of recent years?” But it would be better to ask instead “whose fees?” For talk of the “average” fee hides the fact that discounting for volume,Read More


Making Your Portfolio About #Goals

Feb 13th, 2020 | Filed under: Newly Added, Performance, Analytics & Metrics, Retail Investing, The A.I. Industry, Institutional Investing, Asset allocation, Benchmarking & Performance Attribution, Hedge Funds, High-net-worth investors, Asset Allocation Models, Commodities, Endowments & Foundations, Institutional Asset Management, Private Investments, Real Estate Equity Investments, Family Offices

By Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development at CAIA Association Central Issue of the Paper If you’re a social media junkie, you have probably seen “#goals” in your timeline. In most cases, the hashtag is referring to an attractive couple or an aesthetically pleasing plate of food.Read More


Lessons from CAIS 2020

Feb 11th, 2020 | Filed under: Newly Added, Artificial Intelligence, ESG, Debt Types of Private Equity, Institutional Investing, Socially responsible investing, Hedge Funds, Equity Types of Private Equity, Personalities in AI, Alternative Investments in Context, Economics, Climate change, Institutional Asset Management, Private Investments, SRI and Clean Energy, Macroeconomics, Allocating to A.I., Other Topics in A.I.

John Bowman, CFA, Senior Managing Director at CAIA Association “You’re a kite dancing in a hurricane, Mr. Bond.” (Mr. White to 007, Spectre) Despite the crystal blue island water, softly rolling Caribbean tide, and perfect skies outside the hotel all week, I opened my conference wrap-up panel reminding delegates forRead More


Climate: The ‘OUR’ Between Dog and Wolf

Feb 10th, 2020 | Filed under: Newly Added, What about beta?, ESG, Media Coverage of Hedge Funds, Institutional Investing, Socially responsible investing, Hedge Funds, The Global Economy & Currencies, Alternative Investments in Context, Economics, Climate change, Institutional Asset Management, Private Investments, SRI and Clean Energy, Macroeconomics, Finance & Economics, Other Topics in A.I.

By Bill Kelly, CEO, CAIA Association While this week’s post may harken to a certain book written by John Coates, there is a different play on the metaphor at work here, with our wheezing planet spinning in the center. Consider the wolf: powerful, aggressive, and risk-seeking. The wolf is alsoRead More


Beyond the Meat; Beyond the Traditional

Feb 6th, 2020 | Filed under: Newly Added, ESG, Private Equity, Hedge Funds, Equity Types of Private Equity, Private Investments, Allocating to A.I., Other Topics in A.I.

By Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development at CAIA Association Building the Burger I love when our industry uses analogies to describe investment concepts, so I must applaud one of the introductory pieces to JPMorgan’s 2020 Global Alternatives Outlook. In their introduction to the report, the authorsRead More


The Case for ESG as a Performance Additive

Feb 4th, 2020 | Filed under: Newly Added, ESG, Retail Investing, The A.I. Industry, Institutional Investing, Institutional Asset Management, Other Topics in A.I.

Sustainability-sensitive investing has a net positive impact on performance, according to a paper released by Robeco. According to the paper written by Chris Berkouwer, a Robeco equity analyst, ESG was responsible for 20% of the outperformance of a Robeco fund over a period of three years. His findings are presentedRead More


Alternative Data: A Road to Alpha

Feb 2nd, 2020 | Filed under: Newly Added, Technology, Fintech, Artificial Intelligence, Machine Learning, Hedge Fund Industry Trends, Real Estate, Private Equity, The A.I. Industry, Hedge Funds, Private Investments, Real Estate Equity Investments, Allocating to A.I., Other Topics in A.I.

Investment management firms are increasingly hard-pressed to hedge away risks, increase alpha, and lower costs: a daunting agenda. One way of going about that is by knowing what is going on in the underlying markets more quickly than the competitors and counterparties do.  To that end: alternative data. Investment firms,Read More


Leery Funk’s Open Letter to Sovereign Leaders

Jan 27th, 2020 | Filed under: Newly Added, What about beta?, Consultants, Retail Investing, Private Equity, Institutional Investing, The Global Economy & Currencies, Alternative Investments in Context, Endowments & Foundations, Economics, Climate change, Institutional Asset Management, Private Investments, Macroeconomics, Finance & Economics

By Bill Kelly, CAIA Association CEO In the interest of brevity, I am going to skip the salutation and get right to the heart of the matter. As my name implies, I am Leery of the lofty promises that depend on solving our long-term problems and I do remain inRead More


SASB + TCFD = Common ESG Disclosure Standards?

Jan 26th, 2020 | Filed under: Newly Added, ESG, The A.I. Industry, Institutional Investing, Risk management, Climate change, Institutional Asset Management, Risk Management Strategies & Processes, Macroeconomics, Risk Management & Operations, Other Topics in A.I.

The Sustainability Accounting Standards Board (SASB), a non-profit organization has developed industry-specific standards across environmental, social, and governance topics, working toward a consensus on the sorts of disclosures that the issuers of securities should and will make to their investors. In November 2018, SASB released complete standards for 77 industries.Read More


Hope May Not Be a Strategy…But Neither is a 60/40

Jan 21st, 2020 | Filed under: Newly Added, What about beta?, Consultants, Retail Investing, Alpha & Beta, Institutional Investing, Risk management, Asset allocation, Asset Allocation Models, Alternative Investments in Context, Institutional Asset Management, Risk Management Strategies & Processes, Allocating to A.I.

By Guest Contributor Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development The death of the 60/40 may be a welcome change for multi-asset investors who understand that exposure to risk premia is perhaps a far better long-term investment strategy. Diversification remains an important facet of asset allocation, but weRead More


ESG: Why the Ratings Diverge

Jan 20th, 2020 | Filed under: Newly Added, ESG, The A.I. Industry, Socially responsible investing, The Global Economy & Currencies, Business News, SRI and Clean Energy, Allocating to A.I., Other Topics in A.I.

A recent MIT Sloan research paper looks at the degree to which various environmental, social, and governance (ESG) ratings diverge and why. The paper is the work of Florian Berg and Roberto Rigobon, both of MIT Sloan, and Julian F. Kolbel, who is affiliated with the University of Zurich’s departmentRead More


Fossil Fuel: Divestment By the Numbers

Jan 16th, 2020 | Filed under: Newly Added, Private Equity, Social investing, The A.I. Industry, Debt Types of Private Equity, Venture capital, Socially responsible investing, Equity Types of Private Equity, Alternative energy, Other Issues in Private Investments, Private Investments, SRI and Clean Energy, Allocating to A.I., Finance & Economics, Other Topics in A.I.

Bill Gates, the founder of Microsoft and one of the world’s wealthiest humans, attracted a good deal of attention last fall by saying, “Divestment, to date, probably has reduced about zero tons of emissions.” He thereby put his finger on a key fault line amongst those who regard ESG investmentRead More


An Alternative View of Manager Selection Risk

Jan 16th, 2020 | Filed under: Newly Added, Performance, Analytics & Metrics, The A.I. Industry, Institutional Investing, Risk management, Asset allocation, Benchmarking & Performance Attribution, Hedge Funds, Asset Allocation Models, Other Issues in Private Investments, Risk Metrics and Measurement, Institutional Asset Management, Private Investments, Risk Management Strategies & Processes, Risk Management & Operations, Allocating to A.I.

By Aaron Filbeck, CFA, CAIA, CIPM & Hossein Kazemi, PhD, CFA, CAIA Association & CISDM This is a summary of the editor’s letter originally published in the Volume 8, Issue 4 of the Alternative Investment Analyst Review, a journal published by CAIA Association. The Problem with Studies Many studies onRead More


Simpler Rules for Commodity Pools

Jan 9th, 2020 | Filed under: Newly Added, The A.I. Industry, Investing in Commodities, Institutional Investing, Regulatory, Commodities, Institutional Asset Management, Family Offices

The Commodity Futures Trading Commission has changed the rules for the managers of commodity pools. The new regulations, approved in November and published in the Federal Register for Dec. 10, take effect on Thursday, January 9, 2020. Some key points about these changes: They have codified Family Office No-Action Letters,Read More


SHARE BUYBACKS OR COMPOSITE EQUITY ISSUANCE?

Jan 1st, 2020 | Filed under: Newly Added, CAPM / Alpha Theory, The A.I. Industry, Financial Economics Theory, The Global Economy & Currencies, Emerging markets, Institutional Asset Management, Finance & Economics

By Daniel Fang, CFA, CAIA, Quantitative Research, and Diana Olteanu-Veerman, CFA, Quantitative Strategy, Northern Trust Asset Management Composite Equity Issuance (Cei) Can be a Proxy for Intangible Returns Anomalies Even though factor investing is widely supported in academia and investment practice, forecasting and harvesting factor returns remains challenging for various reasons.Read More


Ebenezer Scrooge: An Alternative View

Dec 23rd, 2019 | Filed under: Newly Added, What about beta?, Alpha-centric Companies, Social investing, The A.I. Industry, Industry Size & Managers, Asset Managers, Institutional Investing, Socially responsible investing, Hedge Funds, Institutional Asset Management, SRI and Clean Energy, Other Topics in A.I.

By Bill Kelly, CEO, CAIA Association Ebenezer Scrooge was not exactly a cuddly CEO. The way he treated poor Bob Cratchit alone would not have exactly put Scrooge & Marley Ltd. in the top quartile of the Sustainalytics’ ESG Risk Ratings, as he routinely gutted any notion of social responsibility.Read More


Pairs Trading Suggested for Energy Stocks

Dec 11th, 2019 | Filed under: Newly Added, CAPM / Alpha Theory, Hedge Fund Strategies, The A.I. Industry, Alpha & Beta, Alpha Strategies, Hedge Funds, ETFs, Allocating to A.I., Finance & Economics

Carlos Salas Najera, of the New York City Data Science Academy, has tested an old idea (pairs trading) for a strategy that could be tailored to energy stocks and related ETFs. The resulting paper is “Pairs Trading and VAR Analysis Applied to Energy Stocks.” His latest paper, though, has aRead More


Investment Management: Time for New Leaders and Exiting Comfort Zones

Dec 10th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Consultants, Private Equity, The A.I. Industry, Industry Size & Managers, Institutional Investing, Socially responsible investing, Hedge Funds, Equity Types of Private Equity, Other Issues in Private Investments, Business News, Institutional Asset Management, Private Investments, SRI and Clean Energy

Disruption is the trend of the moment in many industries and the investment world is no exception. Deloitte Insights has just posted an article that takes a comprehensive look at the investment world today, traditional and alternative. Its theme is that this world is in search of new leadership andRead More


How to Evaluate Smart Beta ETFs

Dec 8th, 2019 | Filed under: Newly Added, The A.I. Industry, Liquid Alternative Investiments, ETFs, Smart Beta, Allocating to A.I., Other Topics in A.I.

By Nicolas Rabener of FactorResearch (@FactorResearch) Beta is like ice cream and comes in many flavors. Broadly we can categorize it into the following four types: Plain beta: Market capitalization-weighted benchmark indices like the S&P 500 or FTSE 100. Smart beta: Indices with tilts to factors backed by academic andRead More


Central Bank Policies Put the Squeeze on Pension Funds

Dec 5th, 2019 | Filed under: Newly Added, The A.I. Industry, Financial Economics Theory, Institutional Investing, Institutional Asset Management, Finance & Economics

Amundi-CREATE Research has offered its independent assessment on challenges now faced by the world’s pension funds, given the policies of central banks. The subject is of great significance to alternative investments managers who represent the aggressive end of many a pension fund’s portfolio. The gist of the report is thatRead More


Looking for Bias: Hedge Funds, Funds of Funds and Prime Brokers

Nov 28th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Institutional Investing, Hedge Funds, Funds of Hedge Funds, Structure of the Hedge Funds Industry, Allocating to A.I.

Prime brokers help funds of hedge funds identify hedge funds, which creates what the authors of a new paper call a PB bias. This means that portfolios are overweighted to the hedge funds serviced by the connected prime brokers. The scholars tested (and confirmed) the intuitive hypothesis that the biasRead More


Democratization Without Education

Nov 18th, 2019 | Filed under: Newly Added, What about beta?, Consultants, Retail Investing, Private Equity, Institutional Investing, Asset allocation, High-net-worth investors, Asset Allocation Models, Other Issues in Private Investments, Alternative Investments in Context, Endowments & Foundations, Institutional Asset Management, Private Investments, Family Offices, Allocating to A.I.

By Bill Kelly, CAIA Association CEO The American history buffs out there will know that we are just a few short weeks away from the 246th anniversary of the Boston Tea Party. Back in 1773, the British government was deep in debt and decided the very best course was toRead More


Investors Want Liquidity and They Want it Now

Nov 7th, 2019 | Filed under: Newly Added, Private Equity, Hedge Fund Strategies, The A.I. Industry, Debt Types of Private Equity, Institutional Investing, Hedge Funds, Equity Types of Private Equity, The Global Economy & Currencies, Other Issues in Private Investments, Business News, Economics, Institutional Asset Management, Private Investments, Macroeconomics, Allocating to A.I., Finance & Economics, Other Topics in A.I.

A recent publication from Fidelity Institutional Asset Management, while looking at the money markets in the US, emphasizes that investors are looking for liquidity. The report, written by Kerry Pope and Chris Lewis, each an institutional portfolio manager with FIAM, begins with a discussion of the Federal Reserve’s September rateRead More


A Harvard Education

Oct 28th, 2019 | Filed under: Newly Added, What about beta?, Academic Foundations, Institutional Investing, Asset allocation, Asset Allocation Models, Other Issues in Private Investments, Personalities in AI, Endowments & Foundations, Institutional Asset Management, Private Investments, Allocating to A.I.

By Bill Kelly, CEO, CAIA Association While Harvard the institution is legendary, much less is known about its founding other than by some who have taken those tedious Cambridge tours or the gifted alum who studied their way in through one of those 25 famous gates. Harvard College was foundedRead More


Improve Private Funds, Don’t Do Away with Them

Oct 22nd, 2019 | Filed under: Newly Added, Consultants, Private Equity, The A.I. Industry, Debt Types of Private Equity, Institutional Investing, Equity Types of Private Equity, Other Issues in Private Investments, Endowments & Foundations, Institutional Asset Management, Private Investments, Allocating to A.I.

By John L. Bowman, CFA This editorial first appeared on Sept. 18 in Crain’s Pensions & Investments online edition. It’s open season on private equity in the Democratic presidential debates. Senators Elizabeth Warren and Bernie Sanders and others have made attacking “Wall Street” a major plank in their campaign platforms.Read More


Negative Interest Rates: A Reason to Invest in Hedge Funds?

Sep 9th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, CTA, The A.I. Industry, Equity Hedge Funds, Liquid Alternative Investiments, Alpha Strategies, Hedge Funds, Event-Driven Hedge Funds, Liquid Alts, Macro and Managed Futures Funds, Allocating to A.I.

Negative interest rate policy—that is, central bank arrangements that seek to inspire spending by punishing savings, not merely in real but in nominal terms—have spread in recent years among the developed economies, and are now in use in Japan, Switzerland, Sweden, and the Eurozone. Denmark got the ball rolling inRead More


Zebras Are Reactionaries

Sep 9th, 2019 | Filed under: Newly Added, What about beta?, The A.I. Industry, Asset Managers, Alpha Strategies, Hedge Funds, Smart Beta, Risk Management & Operations, Allocating to A.I.

Someone told me that it’s all happening At the Zoo. In this case, it was Paul Simon in his 1967 title song where he anthropomorphizes the animals he sees in the Central Park Zoo. Some are deemed to be honest, some kindly but dumb, and some insincere or skeptical, and,Read More


PORTFOLIO PROTECTION VIA MANAGED FUTURES LIQUID ALTS?

Sep 8th, 2019 | Filed under: Newly Added, Commodities, Hedge Fund Strategies, CTA, The A.I. Industry, Investing in Commodities, Liquid Alternative Investiments, Alternative Mutual Funds, Hedge Funds, Liquid Alts, Commodities, ETFs, Macro and Managed Futures Funds, Allocating to A.I., Other Topics in A.I.

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION The mafia and the hedge fund industry share some characteristics. Both are powerful, non-transparent, and create little value for society. Naturally the mafia is a criminal organization while the only “criminal” element of hedge funds are the high fees they are charging forRead More


New Study Shows Hedge Fund Investors are Quick Learners

Sep 3rd, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Consultants, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Institutional Investing, Hedge Funds, Event-Driven Hedge Funds, High-net-worth investors, Endowments & Foundations, Institutional Asset Management, Family Offices

A recent study by two scholars at the University of California Irvine asks how quickly investors learn about the skills of their asset managers, including their hedge fund managers. Christopher Schwarz and Zheng Sun, both associate professors of finance at The Paul Merage School of Business at UC Irvine, hadRead More


Is it Time for the Gold Bug to Bite?

Aug 27th, 2019 | Filed under: Newly Added, Commodities, Hard metals, The A.I. Industry, Investing in Commodities, Commodities, Commodities: Examples, ETFs, Gold

Diane Merritt, of the Closed-End Fund Association (CEF) spoke recently with Axel Merk, of Merk Investments, about precious metals as part of a portfolio, and specifically the role these metals can play late in the business cycle: which, according to a rather broad consensus, is where we now are. TheRead More


Whatfore Art Thou Use of Alt-data?

Aug 26th, 2019 | Filed under: Newly Added, What about beta?, Alternative data, The A.I. Industry, Smart Beta, Allocating to A.I.

Shakespeare’s Juliet once famously asked “what’s in a name?” If you know the play, she was talking about roses and how they would smell as sweet, even if they had an alternative name. Would her modern-day self not ask the same about data? And what makes today’s alt-data different fromRead More


How Endowments and Foundations Look at Hedge Funds

Aug 8th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Consultants, Private Equity, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Debt Types of Private Equity, Venture capital, Hedge Funds, Equity Types of Private Equity, High-net-worth investors, Endowments & Foundations, Institutional Asset Management, Private Investments, Fees, Family Offices

Cowen’s Capital Introduction Group has compiled information on what the endowment and foundation community is thinking about hedge funds and how best to invest in them. The Cowen paper on the subject begins with the observation, drawn from Preqin, that at present US-based E&Fs with more than $750 million inRead More


Restrictions on Pension Plan Investments: A Global Survey

Jul 16th, 2019 | Filed under: Newly Added, Derivatives, The A.I. Industry, Institutional Investing, Hedge Funds, Commodities, Institutional Asset Management, Structured Products, Allocating to A.I.

A new report from the Organization for Economic Cooperation and Development surveys the main quantitative investment restrictions to which pension funds and other pension providers are subject in both OECD countries and a selection of International Organization of Pension Supervisors’ (IOPS) member countries. It reminds us of the general desireRead More


The Audacity of Opacity

Jul 15th, 2019 | Filed under: Newly Added, What about beta?, Consultants, Media Coverage of Hedge Funds, Private Equity, Industry Size & Managers, Asset Managers, Institutional Investing, Hedge Funds, High-net-worth investors, Alternative Investments in Context, Endowments & Foundations, Institutional Asset Management, Private Investments, Family Offices, Allocating to A.I.

By Bill Kelly, CEO, CAIA Association Why are we still talking about this? No, it’s not the central bankers and their insatiable easing tendencies, trade wars with China, or even the Women’s World Cup football match (sorry Netherlands!). These stories all make great headlines, drive news ratings, generate tickertape parades,Read More


The Dangers and Attractions of Infrastructure Investing

Jul 4th, 2019 | Filed under: Newly Added, Infrastructure, The A.I. Industry, Institutional Investing, Natural Resources and Land, Other Issues in Private Investments, Operationally Intensive Real Assets, Institutional Asset Management, Real Assets, Other Topics in A.I.

An arm of Brookfield Asset Management, Brookfield Infrastructure, announced that it is leading a group of investors to buy Genesee & Wyoming for a cash payment of $112 per share, a premium of nearly 40% over the pre-announcement stock price. This is a big infrastructure play. G&W is a freightRead More


SOS

Jul 1st, 2019 | Filed under: Newly Added, What about beta?, Retail Investing, Institutional Investing, Asset allocation, Asset Allocation Models, Alternative Investments in Context, Institutional Asset Management, Allocating to A.I., Other Topics in A.I.

By Bill Kelly, CEO, CAIA Association Ask someone of a certain generation to name the most common worldwide distress signal, and they will likely come back with SOS. No surprise then that this same signal, borne from the Morse code, turns 111 years old on this date in history. MostRead More


Mind the Gap: The Unforeseen Consequences of Smart Beta

Jun 27th, 2019 | Filed under: Newly Added, Retail Investing, The A.I. Industry, Alpha & Beta, Liquid Alternative Investiments, Hedge Funds, Liquid Alts, ETFs, Smart Beta, Other Topics in A.I.

A new paper by Sean Markowicz, a strategist at Schroders, looks into the possibility that fund flows into the assets generically called smart beta are having detrimental consequences for the financial system. It also sheds some light on investors’ bad timing regarding ETFs. The assets at issue are, according toRead More