Browsing: Allocating to A.I.

Allocating to A.I.

Retirement’s Mid-Life Crisis

Sep 22nd, 2020 | Filed under: Private Equity, Newly Added, Institutional Investing, Asset allocation, Asset Allocation Models, Other Issues in Private Investments, Alternative Investments in Context, Institutional Asset Management, Hedge Funds, Private Investments, Allocating to A.I.

By Rob Croce, PhD – Managing Director and Portfolio Manager at Mellon & Aaron Filbeck, CAIA, CFA, CIPM – Associate Director of Content Development at CAIA Association In 2000, United States 10-year government bonds rates were 6% and the median U.S. public pension plan had an actuarial return assumption ofRead More


Size, Expertise, and What Really Matters in Fund Selection

Sep 15th, 2020 | Filed under: Industry Size & Managers, Newly Added, Institutional Investing

Lydia Ofori, CFA, CAIA Chief Executive Officer at Victoria Lion Partners Private assets have come of age, in part thanks to an over stretched liquid market which has led to little or no room for alpha generation, and also due to a growing familiarity of the concept of private ownershipRead More


AI, What Have You Done for Me Lately?

Sep 10th, 2020 | Filed under: Newly Added, Fintech, Artificial Intelligence, ETFs, Machine Learning, Hedge Funds, Allocating to A.I., Other Topics in A.I.

By Nicolas Rabener of FactorResearch (@FactorResearch) INVESTING IN AI VERSUS AI INVESTING “AI will probably most likely lead to the end of the world, but in the meantime, there’ll be great companies.” – Sam Altman If investors are looking for that one great AI company that will also end theRead More


From impact intention to impact management: Are you ready for the change?

Sep 7th, 2020 | Filed under: Newly Added, Asset allocation, Asset Allocation Models, Other Issues in Private Investments, Alternative Investments in Context, ESG, Private Investments, Other Topics in A.I.

By Sara Olsen and David Pritchard of SVT Group and Yuwei Shi of Middlebury Institute of International Studies at Monterey *Please take a moment to complete the brief survey at the conclusion of this article. Every investment generates or destroys social and environmental value, aside from financial return. One ofRead More


Regulatory Bread and Circuses 

Aug 31st, 2020 | Filed under: Retail Investing, Newly Added, What about beta?, Other Issues in Private Investments, Business News, Private Investments, Allocating to A.I., Other Topics in A.I.

By Bill Kelly, CAIA Association CEO Pictured above is the bust and the borrowed line of Juvenal, a Roman poet from the late first century. His cynical reference to bread and circuses was simply to say: feed and entertain the masses and they will forget what they wanted in the first place. The announcement this week from the SEC regarding their final ruling on amendments to the definition ofRead More


Is the US Stock Market Overvalued? A Back-of-the-Envelope Calculation

Aug 16th, 2020 | Filed under: Performance, Analytics & Metrics, Financial Economics Theory, Newly Added, The Global Economy & Currencies, Economics, Macroeconomics, Finance & Economics

By Hossein Kazemi, The CAIA Association & The Isenberg School of Management In recent weeks, hundreds of research reports and many more blogs and commentaries have discussed the current valuation of the US stock market.  With the economy in a recession and corporate profits and GDP down by double digits,Read More


Applying Occam’s Razor to Factor Analysis

Aug 12th, 2020 | Filed under: Newly Added, Asset allocation, Asset Allocation Models, Allocating to A.I.

By Alex Botte, CFA, CAIA, Vice President, Two Sigma The principle of Occam’s razor states that, in searching for explanations or solutions to problems, “entities should not be multiplied unnecessarily.” If one has various models that arrive at the same outcome, one should choose the one with the fewest assumptions. InRead More


Do You Know Your ABZ’s?

Aug 10th, 2020 | Filed under: Retail Investing, Newly Added, Institutional Investing, What about beta?, Other Issues in Private Investments, Smart Beta, Institutional Asset Management, Liquid Alternative Investiments, Private Investments

By Bill Kelly, CEO, CAIA Association Perhaps the most prescient definition of alpha is simply undiscovered beta, and if you look at this idea through the quinquagenarian endowment model, you might just see the point. In the good old days, investment performance and alpha were one in the same. Along cameRead 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


Will the DOL Decision on Private Equity Impact the Democratization of Alternative Investments?

Aug 4th, 2020 | Filed under: Retail Investing, Private Equity, Newly Added, Asset allocation, Equity Types of Private Equity, Asset Allocation Models, Liquid Alternative Investiments, Private Investments, Allocating to A.I.

By Rashad Kurbanov, CEO & Co-Founder at iownit capital and markets Alternative investments have been around for decades and have been a part of institutional investment portfolios for the majority of the time. Institutional investors have increasingly allocated their investment capital to these investments with an expectation that they willRead More


Understanding the Limitations of Liquid Alternatives

Jul 30th, 2020 | Filed under: Retail Investing, Hedge Fund Strategies, Newly Added, Alternative Mutual Funds, 130/30, Liquid Alts, Alternative Investments in Context, Smart Beta, Hedge Funds, Liquid Alternative Investiments, Allocating to A.I.

By Shana Sissel, CAIA, Spotlight Asset Group More than a decade ago the world of alternative investments witnessed hedge-fund-inspired Investment Act of 1940 (40 Act) funds appear on the scene. Much like their private alternative counterparts, liquid alternatives offer valuable diversification benefits within traditional portfolios, but it’s important to keepRead More


Hedge Funds and Private Equity—Building Bridges—Or Not

Jul 27th, 2020 | Filed under: Private Equity, Debt Types of Private Equity, Newly Added, Asset Managers, Institutional Investing, Venture capital, Asset allocation, Equity Types of Private Equity, Asset Allocation Models, The A.I. Industry, Institutional Asset Management, Hedge Funds, Private Investments

Alternative investment managers were evolving in the context of changing market conditions even before the Covid-19 pandemic, although the virus has speeded up the process. What is emerging is an alternatives landscape where pure-play hedge funds will be rare. That is one of the conclusions of a new study byRead More


An ‘Alternative’ Safe-Haven

Jul 26th, 2020 | Filed under: Performance, Analytics & Metrics, Newly Added, Risk management, Asset allocation, Asset Allocation Models, Risk Metrics and Measurement, Risk Management Strategies & Processes, Allocating to A.I.

By Karl Rogers, ACE Capital Investments Abstract: The sovereign bond market has traditionally been a widely used tool for portfolio construction given its dual characteristics of returning a real yield with a negative correlation to equity markets – providing both a real return expectancy and portfolio protection. Given the zero-lower-boundRead More


Impact Investing Won’t Save Capitalism, But Its Example Might

Jul 22nd, 2020 | Filed under: Private Equity, Social investing, Newly Added, Asset allocation, Socially responsible investing, Equity Types of Private Equity, Asset Allocation Models, Other Issues in Private Investments, ESG, Private Investments, SRI and Clean Energy, Other Topics in A.I.

By Michael O’Leary and Warren Valdmanis GIIN’s 10th Anniversary report highlights new records, but what’s the endgame? When the Global Impact Investing Network (GIIN) issued its first survey a decade ago, the term “impact investing” had only been coined three years earlier. Just 24 investors responded. In GIIN’s tenth anniversaryRead More


‘Expectations Will Increase’ on E(E)SG

Jun 30th, 2020 | Filed under: Newly Added, Asset allocation, Asset Allocation Models, ESG, Allocating to A.I., Other Topics in A.I.

 Adam O. Emmerich of the corporate and securities law firm Wachtell Lipton in a recent memo cautioned the firm’s corporate clients that the expectations on them with regard to transparency on environmental, social, and governance matters will increase in the months ahead. His emphasis is on the social part ofRead More


The Inflation-Deflation Debate and its Implication for Asset Allocation 

Jun 28th, 2020 | Filed under: Newly Added, Risk management, Asset allocation, Asset Allocation Models, Alternative Investments in Context, Risk Management Strategies & Processes, Allocating to A.I., Finance & Economics

By Alan Dunne, Managing Director, Abbey Capital One of the key questions facing investors at the moment is whether inflation or deflation represents the bigger risk for the coming years. Economists are split on this and one of the reasons for the uncertainty is that COVID-19 represents both a supplyRead More


The Allusivity Premium

Jun 22nd, 2020 | Filed under: Retail Investing, Newly Added, Institutional Investing, What about beta?, Liquid Alts, Alternative Investments in Context, Smart Beta, Institutional Asset Management, Liquid Alternative Investiments, Other Topics in A.I.

By Bill Kelly, CEO, CAIA Association Since this What About Beta column started about two years and almost 75 entries ago, the goal has always been to take a CAIA article, a relevant news story, or an industry trend and amplify it, replete with an occasional catchy title, and maybeRead More


SAVING THE WORLD BY ‘TECHNOLOGIZING’ INSTITUTIONAL INVESTMENT

Jun 21st, 2020 | Filed under: Newly Added, Alternative data, Institutional Investing, Technology, Artificial Intelligence, Alternative Investments in Context, ESG, Endowments & Foundations, Climate change, Institutional Asset Management, Machine Learning, Other Topics in A.I.

By Ashby Monk, Executive and Research Director at Global Projects Center, Stanford University & Dane Rook, Research Engineer at Global Projects Center, Stanford University “The world needs institutional investors to save society as we know it.” Say these words to your mother, and she may check your temperature; say them at aRead More


UK Stewardship Code: Stepping Up as Corporate Guardians

Jun 14th, 2020 | Filed under: Newly Added, Institutional Investing, ESG, Institutional Asset Management, Other Topics in A.I.

It has been 10 years since the United Kingdom introduced a Stewardship Code, drawn up by its Financial Reporting Council (FRC), a quasi-governmental agency. The code was meant to remedy some of the inadequacies in the system of corporate governance that, it was thought, the crises of 2007-2008 had revealed.Read More


A Target Date for Target Dates

Jun 8th, 2020 | Filed under: Consultants, Retail Investing, Private Equity, Newly Added, Alternative Mutual Funds, Asset allocation, Equity Types of Private Equity, What about beta?, Asset Allocation Models, Other Issues in Private Investments, Institutional Asset Management, Private Investments, Allocating to A.I.

By Aaron Filbeck, CAIA, CFA, CIPM | Associate Director, Content Development at CAIA Association While every retirement plan participant has unique life and planning circumstances, they generally (and almost evenly) split into two broad categories regarding investment philosophies: the do-it-yourself crowd and the do-it-for-me crowd. The do-it-yourself crowd typically followsRead More


Hedge Funds and 2 Economic Crises: Focus on Systematic and Algorithmic Hedge Funds

May 28th, 2020 | Filed under: Hedge Fund Industry Trends, Hedge Fund Strategies, Newly Added, CAIA Alternative Viewpoints, Hedge Funds, Structure of the Hedge Funds Industry, Allocating to A.I.

By Hossein Kazemi, PhD, CFA, Senior Advisor at CAIA Association During the Global Financial Crisis (GFC), the role of hedge funds and their potential to provide significant downside protection was hotly debated. The same debate has resurfaced earlier this year again when markets for risky assets experience double-digit declines withinRead More


Nowcasting Endowment Returns

May 21st, 2020 | Filed under: Newly Added, Institutional Investing, Asset allocation, CAIA Alternative Viewpoints, Asset Allocation Models, Endowments & Foundations, Institutional Asset Management

By Hossein Kazemi, PhD, CFA, Senior Advisor at CAIA Association, and Aaron Filbeck, CAIA, CFA, CIPM, Associate Director, Content Development at CAIA Association “There are at least two kinds of games. One could be called finite, the other infinite. A finite game is played for the purpose of winning, an infiniteRead More


Time-varying Equity Volatility Markedly Affects Hedge Fund Performance

May 19th, 2020 | Filed under: Performance, Analytics & Metrics, Hedge Fund Strategies, Newly Added, Risk management, Benchmarking & Performance Attribution, Risk Management Strategies & Processes, Hedge Funds, Structure of the Hedge Funds Industry

By Masao Matsuda, CAIA, FRM, Founder, Crossgates Investment and Risk Management One would think hedge funds can weather market gyrations better than long-only equity investments as hedge funds have greater flexibility in determining the levels of market exposure.  However, while some individual hedge funds may have been successful in adverse marketRead More


ETFs, Systemic Risks, and a Real-Time Test

May 5th, 2020 | Filed under: Retail Investing, Newly Added, Liquid Alts, ETFs, The A.I. Industry, Liquid Alternative Investiments

ETFs are one of the routes by which once alternative and elite-access-only strategies have become democratized or gone retail. As a result of this trend, we have synthetic ETFs, smart beta ETFs, leveraged ETFs, and inverse ETFs. A recent study study provides some reassurance about concerns that have motivated kickbackRead 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


Next Customer!

Apr 20th, 2020 | Filed under: Newly Added, Institutional Investing, Asset allocation, What about beta?, Asset Allocation Models, Alternative Investments in Context, Institutional Asset Management

By Bill Kelly, CAIA Association CEO Our story starts with a former Eagle Scout known as Barber. While his name had absolutely nothing to do with his ultimate professional calling, Barber Conable did, perhaps unwittingly, become the Sweeney Todd of the defined benefit plan. Barber Conable lived a noble lifeRead More


Peeling Back the Wrapper of Hedge Fund Strategies

Apr 13th, 2020 | Filed under: CAPM / Alpha Theory, Hedge Fund Strategies, Alpha & Beta, Equity Hedge Funds, Newly Added, Institutional Investing, Alpha Strategies, Event-Driven Hedge Funds, CAIA Alternative Viewpoints, Liquid Alts, Institutional Asset Management, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge Funds, Liquid Alternative Investiments, Allocating to A.I., Other Topics in A.I.

By Aaron Filbeck, CAIA, CFA, CIPM, Associate Director, Content Development at CAIA Association During CAIA Association’s most recent Virtual Chapter event, Keith and I (virtually) sat down with Chris Tidmore, CFA, CPA at The Vanguard Group to discuss Vanguard’s recent whitepaper, “The Wrapper Matters: Comparing Liquid Alternatives to Hedge Funds”Read More


Where has all the diversification gone?

Apr 7th, 2020 | Filed under: Newly Added, Liquid Alts, The A.I. Industry, Liquid Alternative Investiments, Allocating to A.I., Other Topics in A.I.

By Beth Anne Byrne and Kara O’Halloran, FS Investments Warren Buffett’s famous quote reads “You only learn who has been swimming naked when the tide goes out”. The tide is most certainly out now, and many portfolios have been exposed. The historic bull market has ended, and with it theRead More


Be Direct with Me, Please!

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

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, CAIA Alternative Viewpoints, 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, 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


ESG ETFs: A Warning About Opacity

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


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: Hedge Fund Industry Trends, Hedge Fund Regulation, Hedge Fund Strategies, Newly Added, Regulatory Environment, Liquid Alts, The A.I. Industry, Fees, Hedge Funds, Liquid Alternative Investiments, 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, Fintech, Technology, Artificial Intelligence, CAIA Alternative Viewpoints, Asset Allocation Models, Machine Learning, Hedge Funds, 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, Liquid Alts, ESG, ETFs, The A.I. Industry, Liquid Alternative Investiments, 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: Consultants, Real Estate, Liquid and Fixed Income Real Estate, Newly Added, Institutional Investing, Risk management, Asset allocation, Natural Resources and Land, CAIA Alternative Viewpoints, 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: Retail Investing, Newly Added, Institutional Investing, Socially responsible investing, ESG, The A.I. Industry, 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: Retail Investing, Newly Added, What about beta?, Liquid Alts, Smart Beta, Hedge Funds, Liquid Alternative Investiments, 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: Retail Investing, Newly Added, Alternative Beta & Hedge Fund Replication, Smart Beta, The A.I. Industry, Hedge Funds, Liquid Alternative Investiments, Commodities, 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: Hedge Fund Industry Trends, Consultants, Newly Added, Institutional Investing, High-net-worth investors, Endowments & Foundations, The A.I. Industry, Institutional Asset Management, Fees, Family Offices, Hedge Funds, 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: Performance, Analytics & Metrics, Retail Investing, Newly Added, Institutional Investing, Asset allocation, Benchmarking & Performance Attribution, CAIA Alternative Viewpoints, High-net-worth investors, Asset Allocation Models, Endowments & Foundations, The A.I. Industry, Institutional Asset Management, Real Estate Equity Investments, Family Offices, Hedge Funds, Commodities, Private Investments

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: Debt Types of Private Equity, Newly Added, Institutional Investing, Socially responsible investing, Equity Types of Private Equity, Artificial Intelligence, CAIA Alternative Viewpoints, Alternative Investments in Context, ESG, Economics, Climate change, Institutional Asset Management, Hedge Funds, Macroeconomics, Private Investments, Personalities in AI, SRI and Clean Energy, 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, Institutional Investing, Media Coverage of Hedge Funds, Socially responsible investing, The Global Economy & Currencies, What about beta?, Alternative Investments in Context, ESG, Economics, Climate change, Institutional Asset Management, Hedge Funds, Macroeconomics, Private Investments, SRI and Clean Energy, 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: Private Equity, Newly Added, Equity Types of Private Equity, CAIA Alternative Viewpoints, ESG, Hedge Funds, 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: Retail Investing, Newly Added, Institutional Investing, ESG, The A.I. Industry, 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: Hedge Fund Industry Trends, Real Estate, Private Equity, Newly Added, Fintech, Technology, Artificial Intelligence, The A.I. Industry, Real Estate Equity Investments, Machine Learning, Hedge Funds, Private 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: Consultants, Retail Investing, Private Equity, Newly Added, Institutional Investing, The Global Economy & Currencies, What about beta?, Alternative Investments in Context, Endowments & Foundations, Economics, Climate change, Institutional Asset Management, Macroeconomics, Private Investments, 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, Institutional Investing, Risk management, ESG, Climate change, The A.I. Industry, 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