Browsing: Newly Added

Newly Added

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


Big Data is a Big Deal

Feb 17th, 2020 | Filed under: Newly Added, CAIA Alternative Viewpoints, The A.I. Industry, Machine Learning

By Keith Black, PhD, CFA, CAIA, FDP, Managing Director of Content Strategy, CAIA Association CAIA’s second webinar starring the authors of papers that are required readings for the FDP exam featured Gene Getman, CAIA, a client portfolio manager and product specialist for Lombard Odier Investment Managers. He detailed how LombardRead 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


The Perils of Late-Cycle Investing

Feb 11th, 2020 | Filed under: Hedge Fund Industry Trends, Private Equity, Debt Types of Private Equity, Newly Added, Equity Types of Private Equity, Credit Derivatives, Other Issues in Private Investments, Alternative Investments in Context, The A.I. Industry, Structured Credit Products, Hedge Funds, Private Investments, Structured Products

It is widely believed that much of the world is now experiencing the late stages of a bull market. There will be a downturn because no tree grows to the sky. Forecasting the nature and severity of the coming downturn is tricky, but perhaps that is not the right question.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


Biofuels and Deforestation: A CSR/ESG Cautionary Tale

Feb 9th, 2020 | Filed under: Newly Added, Alternative energy, ESG, Energy, Climate change, The A.I. Industry, Commodities, SRI and Clean Energy, Other Topics in A.I.

The Republic of France, in March 2019, decided that it would no longer consider fuel made from palm oil to be a “biofuel,” effective as of January 2020. So that  redefinition is now in effect. Meanwhile, the EU recently set tariffs on palm oil coming in from Indonesia or Malaysia:Read 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


A Conversation with the Institute of Business Ethics

Jan 30th, 2020 | Filed under: Newly Added, Technology, Artificial Intelligence, CAIA Alternative Viewpoints, The A.I. Industry, Machine Learning, Other Topics in A.I.

By Keith Black, PhD, CFA, CAIA, FDP | Managing Director, Content Strategy at CAIA Association Recently, CAIA Association sat down for a conversation with Guen Donde, the Head of Research for the Institute of Business Ethics (IBE).  Life moves pretty fast in the world of GDPR, big data, and artificialRead More


Introducing CAIA Alternative Viewpoints

Jan 30th, 2020 | Filed under: Newly Added, CAIA Alternative Viewpoints, The A.I. Industry

Dear Reader, Welcome to CAIA Alternative Viewpoints. For those who have been following CAIA Association’s website, or any of our industry commentary on social media, the title “Viewpoints” should look very familiar. From its inception, Viewpoints have served as a way for investment professionals to quickly digest the primary conceptRead 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


CAIA Alternative Viewpoint: Risk Parity

Jan 23rd, 2020 | Filed under: Newly Added, Risk management, CAIA Alternative Viewpoints, Risk Metrics and Measurement, The A.I. Industry, Risk Management Strategies & Processes

Mean variance optimization (MVO) is a simple, yet well-regarded asset allocation technique designed to create a portfolio that maximizes it’s expected level of return for a given level of standard deviation. Many institutions construct diversified portfolios using this simple technique, attempting to maximize their risk-adjusted returns. While popular with manyRead More


False Positives and Machine Learning

Jan 23rd, 2020 | Filed under: CTA, Newly Added, Alternative data, Fintech, Risk management, Technology, Artificial Intelligence, Alternative Investments in Context, The A.I. Industry, Risk Management Strategies & Processes, Machine Learning, Hedge Funds, Other Topics in A.I.

There is a high rate of failure among quant funds. These include smart beta, factor investing, statistical arbitrage, and CTAs. Such false positive strategies are a widespread industry problem. Since psychiatrists have long traded on the ability of the human mind to find an elaborate narrative in a random inkRead More


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

Jan 21st, 2020 | Filed under: Consultants, Retail Investing, Alpha & Beta, Newly Added, Institutional Investing, Risk management, Asset allocation, What about beta?, 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, 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


An Alternative View of Manager Selection Risk

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


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


Hedge Fund Investors Respond to the Turning of the Business Cycle

Jan 13th, 2020 | Filed under: Hedge Fund Industry Trends, Private Equity, Hedge Fund Strategies, Investing in Commodities, Equity Hedge Funds, Debt Types of Private Equity, Newly Added, Equity Types of Private Equity, Other Issues in Private Investments, The A.I. Industry, Hedge Funds, Commodities, Private Investments

It is reasonable to expect that a diversified hedge fund portfolio will make more modest returns in 2020 than it did in 2019, according to Agecroft Partners, which has done its usual January crystal-ball gazing on the new year, looking for the top industry trends and how they may playRead More


How Expensive Are ESG Stocks?

Jan 12th, 2020 | Filed under: Social investing, Newly Added, Socially responsible investing, The A.I. Industry, Other Topics in A.I.

By Nicolas Rabener, FactorResearch (@FactorResearch) INTRODUCTION Europeans seem far more focused on the environment than Americans, which might be considered unusual given that both share an interest in the outdoors and have great national parks. Perhaps this is explained by Europe’s higher population density, which puts living space at aRead More


Simpler Rules for Commodity Pools

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

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


Shorting NMC Health: The Waters are Muddy

Jan 7th, 2020 | Filed under: Hedge Fund Strategies, Equity Hedge Funds, Newly Added, Event-Driven Hedge Funds, The A.I. Industry, Hedge Funds

NMC Health, an Abu Dhabi-based firm listed on the London Stock Exchange, has suffered a sharp loss in value as a consequence of its dispute with a forensic short seller, Carson Block, the man behind Muddy Waters Research. Block has bet against the stock because he believes that it isRead 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


Europe’s Hedge Fund Numbers Growing Again

Jan 2nd, 2020 | Filed under: Hedge Fund Strategies, Newly Added, Event-Driven Hedge Funds, The A.I. Industry, Hedge Funds

Eurekahedge’s latest monthly report includes a special section on the key trends in European hedge funds. It tells us that the total number of European hedge funds grew in 2019, after a decline in each of the four years before (2015 – 2018). In other words, although in recent yearsRead 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


Considering Investing in Qualified Opportunity Funds? Caveat Emptor

Dec 25th, 2019 | Filed under: Real Estate, Newly Added, Qualified Opportunity Zones, Other Issues in Private Investments, The A.I. Industry, Real Estate Equity Investments, Private Investments, Real Assets, Other Topics in A.I.

By David O’Brien, CFP, CAIA The Opportunity Zones Program, enacted as part of the Tax Cuts and Jobs Act of 2017, has great potential to create jobs and spur economic growth while creating a potentially powerful tax strategy for investors and asset managers. The Opportunity Zone Program is designed toRead 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


From SRI to Shariah: A Bridge Not too Far

Dec 24th, 2019 | Filed under: Newly Added, Socially responsible investing, The A.I. Industry, SRI and Clean Energy, Other Topics in A.I.

Usman Hayat, for the CFA Institute has written a provocative paper about the relationship between socially responsible investing on the one hand and Islamic finance on the other. His bottom line is that “emerging trends may enable financial services to develop products that satisfy criteria of both approaches.” In anRead More


Ebenezer Scrooge: An Alternative View

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


Greenfields and Brownfields: Asian Investors Backing Infrastructure Investments

Dec 22nd, 2019 | Filed under: Infrastructure, Debt Types of Private Equity, Newly Added, Credit Derivatives, Other Issues in Private Investments, Operationally Intensive Real Assets, The A.I. Industry, Structured Credit Products, Private Investments, Real Assets, Structured Products

The Asian Infrastructure Investment Bank has taken a 30% stake in Bayfront Infrastructure Management. Clifford Capital, with the backing of the government of Singapore, has the other 70%. They have created Bayfront (with a combined capitalization of $180 million) to mobilize  a pool of infrastructure investors in the expectation thatRead More


The Imminent Demise of the LNG/Crude Oil Link

Dec 19th, 2019 | Filed under: Commodities, Hedge Fund Strategies, Investing in Commodities, Newly Added, oil, Commodities: Examples, Energy, The A.I. Industry, Hedge Funds, Commodities

Liquified natural gas has long been sold through long-term contracts that are benchmarked to the price of crude oil. This makes a certain intuitive sense. The two commodities are in many contexts substitutes, so that one would expect a rise in the prices of one to inspire an echoing riseRead 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


How to Evaluate Smart Beta ETFs

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


Hedge Funds and the Value of Diversity and Inclusion

Dec 3rd, 2019 | Filed under: Hedge Fund Industry Trends, Newly Added, Asset Managers, The A.I. Industry, Hedge Funds

The Alternative Investment Management Association, in conjunction with Ernst & Young, has prepared a paper on inclusion and diversity in the hedge fund industry. The paper begins fittingly with a quotation from Eileen Murray, co-CEO of Bridgewater Associates, who says: “We are fortunate today that people understand that companies doRead More


Requiem for a Heavyweight

Dec 2nd, 2019 | Filed under: Due Diligence Process, Newly Added, What about beta?, Risk Management & Operations

By Bill Kelly, CAIA Association CEO A requiem is a solemn chant for the repose of the dead. Chant-worthiness when it comes to the Enron Corporation is still subject to much debate depending, of course, upon which side of that trade you were on as the company slipped into bankruptcyRead More


Setting The Next Stage in Cryptocurrencies

Dec 1st, 2019 | Filed under: Currencies, Newly Added, The Global Economy & Currencies, Digital currencies, The A.I. Industry, Emerging Alternative Investments, Other Topics in A.I.

Telegram Open Network (TON) is a blockchain project supported by a native utility token called the Gram, created by Pavel and Nikolai Durov, who were behind the Telegram messaging app. TON now faces an existential regulatory threat. The Durovs created TON in response to what they saw as the limitsRead More


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

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