Browsing: Finance & Economics

Foundations of Financial Economics,
Market Efficiency and Active Management
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Finance & Economics

Cryptocurrencies: Asset Class or Something Else?

Oct 22nd, 2020 | Filed under: Newly Added, The Global Economy & Currencies, Digital currencies, Other Issues in Private Investments, Alternative Investments in Context, Frontier markets, Emerging Alternative Investments, Other Topics in A.I.

By Daniele Bianchi, PhD With the rising prices of Bitcoin and public awareness on blockchain, investors have drawn their attention to cryptocurrency markets, driven by the promise of significant returns compared to the flat or negative yields in more traditional asset classes. But how should investors examine cryptocurrencies in theRead More


Don’t Get Carried Away by Carry

Oct 15th, 2020 | Filed under: Newly Added, Alpha Strategies, The Global Economy & Currencies

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION There are folks in finance who know and folks who don’t know. The latter group often drives the former crazy by abusing terminology. For example, moderators and guests on CNBC talking about momentum and growth stocks as if they were the same thing.Read More


Three Sources of Alpha: A Call for Small Manager Investment

Oct 13th, 2020 | Filed under: CAPM / Alpha Theory, Hedge Fund Strategies, CTA, Investing in Commodities, Equity Hedge Funds, Newly Added, Seeding/early-stage, Macro and Managed Futures Funds, Hedge Funds, Commodities, Finance & Economics

By Karl Rogers, ACE Capital Investments I recently finished a multi-strategy fund of hedge funds build for an institution where I focused on three sources of alpha: small manager, equities and commodities. Small Manager Alpha Given that “small” managers have been found to outperform their larger peers[1], why do manyRead More


How Green is the Cannabis Trade?

Oct 12th, 2020 | Filed under: Newly Added, The Global Economy & Currencies, Emerging markets, Frontier markets

Last week we looked at recent developments in the state-legal marijuana markets. Among the observations we made there, these three stand out: Marijuana is becoming an essential business and a permanent feature of the landscape, surviving crises and helping the portfolios of investors do the same; The major players areRead More


The Alternative Imperative, Part 1

Oct 6th, 2020 | Filed under: Algorithmic and high-frequency trading, Hedge Fund Strategies, Newly Added, Alternative data, Technology, Artificial Intelligence, Alternative Investments in Context, Machine Learning, Hedge Funds, Other Topics in A.I.

By Rick Roche, CAIA, Managing Director of Little Harbor Advisors, LLC Part 1 of a two-part series on Alternative Investment Data (Alt-Data) in the COVID Era. In Part 1, the author makes the case for high-frequency, short-interval Alt-Data while discussing three primary drawbacks of interpreting official economic statistics amid aRead More


What is Becoming Manifest about Cannabis?

Oct 4th, 2020 | Filed under: Newly Added, Frontier markets, Private Investments, Other Topics in A.I.

Consumers in the United States are expected to purchase US$10 billion in state-legal cannabis by the end of this year. This makes it a new emerging growth market at a time when so many other markets are contracting or failing altogether under the weight of the pandemic and other economicRead More


Emerging Market Debts (or Funds) as a Weakened-Dollar Bet

Sep 15th, 2020 | Filed under: Newly Added, The Global Economy & Currencies, Emerging markets, Other Issues in Private Investments, Finance & Economics

A new report by the William Blair Funds illustrates why some investors may see emerging-markets debt as a good play over the near future, especially if the assets of the funds are denominated in the local currency. That is a play on dollar weakness. The report uses the JPMorgan GovernmentRead More


The Case for Redefining the Risk-free Asset

Sep 13th, 2020 | Filed under: CAPM / Alpha Theory, Financial Economics Theory, Newly Added, Finance & Economics

The quantitative analysis of markets, and of the performance of fund managers, is in large part the mathematical treatment of various (often contested) metrics of risk. Let us bring two points about risk into collision. First, over more than three decades scholars have debated the “equity premium puzzle.” Why doRead 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


The calm before the (next) storm?

Aug 27th, 2020 | Filed under: Newly Added, The Global Economy & Currencies, Economics, Macroeconomics, Finance & Economics

By Kara O’Halloran, FS Investments The dog days of summer are upon us. While August has historically brought volatility to markets, equities in 2020 appear to have shrugged off their typical late-summer doldrums, posting solid gains to start the month. However, some warning signs are flashing of possible bumps ahead.Read More


IS DOWNSIDE RISK PRICED IN CRYPTOCURRENCY MARKET?

Aug 23rd, 2020 | Filed under: CAPM / Alpha Theory, Newly Added, Risk management, Digital currencies, Risk Management Strategies & Processes, Emerging Alternative Investments, Finance & Economics

By Victoria Dobrynskaya, PhD, associate professor of Finance at National Research University Higher School of Economics Looking at the whole cryptocurrency market through the prism of standard multi-factor asset-pricing models reveals that there is a significant heterogeneity in the exposure to the downside market risk across coins, and that aRead More


EUROPEAN GREEN DEAL: TOWARDS A ZERO-CARBON URBAN ENVIRONMENT

Aug 20th, 2020 | Filed under: Newly Added, Socially responsible investing, The Global Economy & Currencies, Alternative Investments in Context, ESG, Economics, Climate change, Macroeconomics, SRI and Clean Energy, Finance & Economics, Other Topics in A.I.

Part 1 of a multi-part series: The Role of the EU, National Governments & Local Authorities By Christos Angelis, CAIA – Director at Masterdam INTRODUCTION In light of the exciting developments in the European Union regarding the European Green Deal (EGD)[1] presented in the end of 2019, it would beRead More


What Covid-19 Teaches Us About Resilience

Aug 18th, 2020 | Filed under: Newly Added, ESG, Macroeconomics, Other Topics in A.I.

In late February and early March, we witnessed what the European Corporate Governance Institute calls an “an exogenous and unparalleled” crash, during which the S&P 500 shed one-third of its value, dropping from approximately 3,300 on Feb. 20 to close at 2,200 one month later. This provided a natural experimentRead 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


This May Not Be the Apocalypse After All

Aug 9th, 2020 | Filed under: Hedge Fund Industry Trends, Financial Economics Theory, Newly Added, The Global Economy & Currencies, Hedge Funds, Macroeconomics, Finance & Economics

From the point of view of the alternative investment world, the dramas associated with the year 2020 may not constitute as apocalyptic a challenge or as paradigmatic a shift as is commonly thought. It may even be considered, in many respects, business as usual (aside from an occasional “murder hornet.”)Read 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


Socially Distant Inflation

Jul 16th, 2020 | Filed under: Newly Added, The Global Economy & Currencies, CAIA Alternative Viewpoints, Alternative Investments in Context, Finance & Economics

By Keith Black, PhD, CFA, CAIA, FDP As the COVID-19 lockdowns start to ease across the country, governmental entities often have phased approaches for opening. Smaller crowds, smaller businesses, and more socially distanced activities are the first to reopen. It may take until 2021, at the earliest, to return toRead More


Looking For Sustainability in Energy SDG Credits

Jul 9th, 2020 | Filed under: Newly Added, Socially responsible investing, ESG, SRI and Clean Energy, Finance & Economics, Other Topics in A.I.

A new report by two analysts at Robeco discusses sustainability trends in energy credits, especially in the era of Covid 19. The analysts acknowledge the demand collapse that is keeping crude oil, and accordingly alternatives fuels, at very low values. Their focus is on what lies ahead for energy credits.Read 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


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


‘HAL, Determine the Fatness of the Tail’

Jun 11th, 2020 | Filed under: Algorithmic and high-frequency trading, Newly Added, Technology, Artificial Intelligence, Business News, Machine Learning, Finance & Economics, Other Topics in A.I.

There has been a lot of commentary in the financial press about the idea of “fat tails,” that is, about the idea that disasters are more common than a normal or bell curve view of probability would lead one to expect. Indeed, one might even say that there is someRead More


Has the Corona Virus Helped to Erode the Hype Around Artificial Intelligence?

Jun 4th, 2020 | Filed under: Newly Added, Technology, Artificial Intelligence, Business News, Machine Learning, Other Topics in A.I.

By Dr. Mehrzad Mahdavi, Executive Director, CEO Financial Data Professionals Institute According to a recent WSJ article, (subscription required) many companies have just discovered that AI is not some kind of magic sauce that could be poured over any business process to transform it into a moneymaking machin. The article also points outRead More


Stat Arb, Algos and the Difference Between Cats and Dogs

Jun 1st, 2020 | Filed under: Algorithmic and high-frequency trading, Hedge Fund Strategies, Newly Added, Artificial Intelligence, Business News, The A.I. Industry, Machine Learning, Hedge Funds, Other Topics in A.I.

A co-founder of Quantigic Solutions has presented what he calls “the freshmanlevel” answer to the question: why did dollar-neutral quant trading strategies, such as equities stat arb, fail so markedly during the COVID-19 market sell-off? Zura Kakushadze, a professor at the Free University of Tblisi, is on reasonably solid groundRead More


Volatility Forecasting Across the Financial Markets

May 12th, 2020 | Filed under: Currencies, Newly Added, Risk management, The Global Economy & Currencies, Risk Management Strategies & Processes

By Mark Caslin, CEO, Alder Capital Uses of volatility forecasting in financial markets Volatility is generally accepted as the best measure of market risk and volatility forecasting is used in many different applications across the industry. These include risk management, VAR, portfolio construction and optimisation, active fund management, risk-parity investing,Read More


Model Risk Management as Algo Trading Expands

May 10th, 2020 | Filed under: Algorithmic and high-frequency trading, Newly Added, Technology, Artificial Intelligence, The A.I. Industry, Machine Learning, Risk Management & Operations, Other Topics in A.I.

The FICC Market Standards Board Ltd. (FMSB) is a London-based standards body for participants in the wholesale fixed income, currencies, and commodities (FICC) markets. It has been looking into the root causes of market misconduct, and pursuant to that research it recently published a report on the “themes and challenges”Read More


The Data, the Virus, and the Rebound

Apr 28th, 2020 | Filed under: Newly Added, The A.I. Industry, Finance & Economics

A new paper from Loomis Sayles, a subsidiary of Natixis Global Asset Management, discusses the data, and the sort of data, that may tell investors and traders what are the likely effects of the COVID-19 pandemic, in however many mutations there may be. A familiar metaphor in such discussions isRead 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


Using Alternative Data and Machine Learning in Alternative Asset Classes

Mar 30th, 2020 | Filed under: Algorithmic and high-frequency trading, Newly Added, Alternative data, Fintech, Risk management, Technology, Technology, Artificial Intelligence, CAIA Alternative Viewpoints, Machine Learning, Risk Management & Operations, Other Topics in A.I.

Keith Black, PhD, CFA, CAIA, FDP, Managing Director of Content Strategy, CAIA Association Michael Oliver Weinberg and Peter Strikwerda work at the Dutch pension fund APG and serve as the head of hedge funds and alternative alpha and the global head of digital and innovation, respectively. CAIA Association and FDPRead More


Machine learning is not magic—It is just a tool!

Mar 20th, 2020 | Filed under: Algorithmic and high-frequency trading, Newly Added, Technology, Artificial Intelligence, CAIA Alternative Viewpoints, Business News, Machine Learning, Other Topics in A.I.

Keith Black, PhD, CFA, CAIA, FDP, Managing Director of Content Strategy, CAIA Association “Building your dream has to start now There’s no other road to take You won’t make a mistake I’ll be guiding you You have to believe we are magic Nothin’ can stand in our way” – OliviaRead More


Artificial Intelligence and the Cambrian Explosion

Mar 17th, 2020 | Filed under: Algorithmic and high-frequency trading, Newly Added, Business News, The A.I. Industry, Machine Learning, Other Topics in A.I.

Three scholars affiliated with University College London have posted a paper on the dangers that increasingly sophisticated algorithms pose for markets, employing a fascinating analogy from paleontology. But we begin with their big picture. The authors are concerned that in the near future an “ecology of trading algorithms across differentRead 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


Taleb: What Size Tail Does the Smart Money Bet On?

Jan 28th, 2020 | Filed under: Financial Economics Theory, Newly Added, Risk management, Behavioral finance, The A.I. Industry, Risk Management Strategies & Processes, Machine Learning, Finance & Economics, Other Topics in A.I.

Statistician/philosopher Nassim Nicholas Taleb critiques “behavioral” economics and finance as he looks at the differences between “binary forecasts” and “real world payoffs,” in a recent paper for the International Journal of Forecasting. Much of the argument will be familiar to those who have some acquaintance with Taleb’s work as itRead 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


ESG: Why the Ratings Diverge

Jan 20th, 2020 | Filed under: Newly Added, Socially responsible investing, The Global Economy & Currencies, Business News, ESG, The A.I. Industry, 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: Private Equity, Social investing, Debt Types of Private Equity, Newly Added, Venture capital, Socially responsible investing, Equity Types of Private Equity, Alternative energy, Other Issues in Private Investments, The A.I. Industry, 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


Icahn, HP and Xerox: The Story Remains the Same

Jan 14th, 2020 | Filed under: Hedge Fund Strategies, Equity Hedge Funds, Newly Added, Event-Driven Hedge Funds, Business News, The A.I. Industry, Hedge Funds

A long-running drama continues over Xerox’ desire to buy HP. Xerox upped the ante early in the new year, announcing that it has secured binding financing commitments in the amount of $24 million. The dispute, with long-time shareholder activist Carl Icahn at its center, shows that: (a) the corporate worldRead More


The Dog Days of… print(“Season is”,season)

Jan 6th, 2020 | Filed under: Algorithmic and high-frequency trading, Industry Size & Managers, Alternative data, Fintech, What about beta?, Alternative Investments in Context, Business News, The A.I. Industry, Other Topics in A.I.

By Bill Kelly, CEO, CAIA Association As a global organization, it is pleasing to know there is always a CAIA Association Member, somewhere in the world, enjoying the dog days of summer. Although we can’t get Portfolio Management Research to recognize the Southern Hemisphere of seasons on the cover ofRead More


Opportunities Emerge in Emerging Markets Debt

Jan 5th, 2020 | Filed under: Currencies, Newly Added, The Global Economy & Currencies, Emerging markets, Business News, Economics, The A.I. Industry, Macroeconomics

A new year ushers in new opportunities and 2020 is no different in that respect. Emerging markets debt is one such opportunity, according to the global fixed-income team at Morgan Stanley Investment Management. In its new report, MSIM sees “attractive opportunities in countries displaying disinflationary or stable inflation dynamics andRead More


SHARE BUYBACKS OR COMPOSITE EQUITY ISSUANCE?

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


Start Your Algorithms: Speed is Good Again, or is it?

Dec 30th, 2019 | Filed under: Algorithmic and high-frequency trading, Hedge Fund Strategies, Newly Added, Fintech, Alpha Strategies, Technology, Artificial Intelligence, Business News, The A.I. Industry, Hedge Funds

Until the final days of 2019, it has been a quiet year for high-frequency trading-related news. The whole concept of a trade executed in nanoseconds, and the related concept of a trading program managed with only sporadic human intervention or oversight, have all faded into background assumptions. What remains isRead More


High-frequency Trading: More Flash to Come

Dec 29th, 2019 | Filed under: Hedge Fund Industry Trends, Algorithmic and high-frequency trading, Newly Added, Business News, The A.I. Industry, Hedge Funds, Finance & Economics

There has been little “news” about high frequency trading in 2019. On the one hand that silence, as a certain famous detective might say, is “the curious incident.” On the other hand, the period of silence, like the year 2019 itself, may be ending. To get to both points, weRead More


Commodities:Waiting for a Paradigm Shift

Dec 25th, 2019 | Filed under: Commodities, CTA, Investing in Commodities, Newly Added, The Global Economy & Currencies, The A.I. Industry, Macro and Managed Futures Funds, Hedge Funds, Commodities, Finance & Economics

Ray Dalio, in reference to the current financial scene, with its long period of expansion over more than a decade has said, “This set of circumstances is unsustainable and certainly can no longer be pushed…[which] is why I believe that the world is approaching a big paradigm shift.” Dalio hasRead More


Report: Convertible Bonds Attractive for 2020

Dec 17th, 2019 | Filed under: Newly Added, Alpha Strategies, Event-Driven Hedge Funds, The Global Economy & Currencies, The A.I. Industry, Hedge Funds

A new report from Schroders looks at global convertible bonds, instruments that straddle the boundaries of debt/equity/derivatives. It tells us—in a discussion that might be of interest to the portfolio managers of relative value hedge funds—that these bonds have come back into fashion due to the higher volatility of 2019Read More


Africa: Alpha for the Bold

Dec 15th, 2019 | Filed under: Infrastructure, Newly Added, The Global Economy & Currencies, Emerging markets, Operationally Intensive Real Assets, Economics, The A.I. Industry, Frontier markets, Macroeconomics

The CFA Institute, in conjunction with the African Stock Exchanges Association (ASEA), has put together a book on the challenges and opportunities in the African capital markets. In Africa as elsewhere, fortune favors the bold. For example—and this is not an example from the ASEA and CFA Institute’s book—the EnkoRead More


A Critique of (Non-forensic) Short Selling

Dec 12th, 2019 | Filed under: Hedge Fund Strategies, Equity Hedge Funds, Financial Economics Theory, Newly Added, Alpha Strategies, The A.I. Industry, Hedge Funds, Finance & Economics

In a new paper, three quants with Robeco suggest that the “short” side of the activity of many long/short equity trades is pointless. These quants are David Blitz, Guido Baltussen, who is also affiliated with Erasmus University, Rotterdam, and Pim Van Vliet. They have broken down the common equity factorRead More


Pairs Trading Suggested for Energy Stocks

Dec 11th, 2019 | Filed under: CAPM / Alpha Theory, Hedge Fund Strategies, Alpha & Beta, Newly Added, Alpha Strategies, ETFs, The A.I. Industry, Hedge Funds, 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: Hedge Fund Industry Trends, Consultants, Private Equity, Industry Size & Managers, Newly Added, Institutional Investing, Socially responsible investing, Equity Types of Private Equity, Other Issues in Private Investments, Business News, The A.I. Industry, Institutional Asset Management, Hedge Funds, 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


Central Bank Policies Put the Squeeze on Pension Funds

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