Browsing: What About Beta?

What About Beta?

What About Beta? | Learn to Play the Orchestra

Jun 6th, 2021 | Filed under: Featured Post, Manager Selection, Newly Added, Asset Allocation, What About Beta?, Risk Management

By Aaron Filbeck, CFA, CAIA, CIPM, FDP, Director, Global Content Development at CAIA Association Steve Wozniak: “You can’t write code… you’re not an engineer… you’re not a designer… you can’t put a hammer to a nail […] So how come ten times in a day, I read Steve Jobs isRead More


What About Beta? | A Canary Conundrum

May 24th, 2021 | Filed under: Featured Post, Manager Selection, Newly Added, What About Beta?, ESG

By Bill Kelly, CEO, CAIA Association Pity the poor misunderstood canary. It was in the early 1900s in Yorkshire when they were first chosen to die on a hill that they would likely have volunteered to die on anyway. It was that important then and even more important today. ItRead More


What About Beta? | The Law of Portfolio Relativity

May 9th, 2021 | Filed under: State of the Industry, Featured Post, Newly Added, What About Beta?

By Aaron Filbeck, CFA, CAIA, CIPM, FDP, Director, Global Content Development at CAIA Association One of my favorite sci-fi movies of all time is Christopher Nolan’s Interstellar. While there so many great elements to the film, including a killer score, one of the most interesting tensions that emerges from theRead More


What About Beta? | Culture Eats Sharpe Ratios for Breakfast

Apr 25th, 2021 | Filed under: State of the Industry, Featured Post, Manager Selection, Newly Added, What About Beta?, Risk Management

By John Bowman, CFA, Senior Managing Director, CAIA Association This article was originally posted on FundFire on March 24, 2021. Alternative fund manager due diligence has an execution problem. The evidence is mounting that investors, managers, and consultants agree the typical fund vetting process overlooks increasingly important qualitative factors thatRead More


What About Beta? | Bitcoin and Ethereum Derivatives – A First Step for Institutions?

Mar 23rd, 2021 | Filed under: State of the Industry, Access to Alternatives, Featured Post, Newly Added, What About Beta?, Commodities & Natural Resources

By Keith Black, PhD, CFA, CAIA, FDP, Managing Director of Content Strategy, CAIA Association In February 2020, IPE asked whether the $200 billion cryptocurrency market was of interest to institutional investors. While the premise was tempting, few institutions made the allocation, due to challenges and uncertainty in custody while questioningRead More


What About Beta? | Breaking the Fourth Wall of ESG

Mar 14th, 2021 | Filed under: Featured Post, Newly Added, What About Beta?, ESG, Risk Management

By Aaron Filbeck, CFA, CAIA, CIPM, FDP, Director of Global Content Development at CAIA Association “In a real magic act, everything is fake.” – Wanda Maximoff, WandaVision (2021) A harmless phrase used in the latest addition to the Marvel Cinematic Universe, WandaVision. The protagonist, Wanda Maximoff, has created a false reality byRead More


What About Beta? | Risk: Going, Going, Gone!

Feb 15th, 2021 | Filed under: Newly Added, What About Beta?

By Bill Kelly, CEO, CAIA Association If you live in the Northern Hemisphere, you might have noticed that the days are getting a bit longer. In fact, we are gaining just over two minutes of daylight every day and daylight savings time happens in less than a month. In anotherRead More


What About Beta? | What Happens When the GameStops?

Jan 31st, 2021 | Filed under: Newly Added, What About Beta?

By Aaron Filbeck, CFA, CAIA, CIPM, FDP The last time I saw so many newly minted investment experts on social media was four years ago, December 2017. Bitcoin had hit all-time highs, and the dreaded feeling of FOMO was causing clients to move as quickly as they could to getRead More


What About Beta? | Does Anyone Give a Dodd-Graham About Value(s) Anymore?

Jan 25th, 2021 | Filed under: Newly Added, What About Beta?

By Bill Kelly, CAIA Association CEO Seventy years ago this month, ironically, the Supreme Court ruled that the incitement to riot is not protected speech and can be grounds for arrest. In other septuagenarian January news, Security Analysis, The Classic Edition 1951 by Graham and Dodd was released. Both thenRead More


What About Beta? | Finally, Hindsight Is 2020

Jan 3rd, 2021 | Filed under: State of the Industry, Private Equity, Newly Added, Asset Allocation, What About Beta?, Hedge Funds

By Aaron Filbeck, CFA, CAIA, CIPM, FDP – Director, Global Content Development at CAIA Association Well…we made it. This has been the longest decade year of our lives. Whether it’s been personal or professional circumstances, or simply having been an investor in this market, none of us could escape theRead More


What About Beta? | An Investors First Agenda for the Biden Administration

Dec 20th, 2020 | Filed under: Newly Added, What About Beta?

By John Bowman, CFA This week’s What About Beta column is an excerpt from our open letter to the incoming Biden-Harris Administration. Please read the full letter here. A hearty congratulations to President-elect Biden and Vice President-Elect Harris.   In your victory speech, you claimed that regardless of our voting preference,Read More


What About Beta? | Save (Us All) for Retirement

Nov 15th, 2020 | Filed under: Manager Selection, Newly Added, Asset Allocation, What About Beta?

By Aaron Filbeck, CFA, CAIA, CIPM We have not been shy in our assessment of the current state of retirement. As we know, defined benefit plans face a tough road ahead as lofty actuarial assumptions have barely budged and regular distributions are hardly being backfilled with contributions. But what aboutRead More


What About Beta? | The Kudlow Report(s)

Oct 26th, 2020 | Filed under: Data Science & AI, State of the Industry, What About Beta?

By Bill Kelly, CEO, CAIA Association Maybe Howard Marks was right when he wrote about Investing Without People. In that memo he talks about the machine which can largely excel at anything that is quantitative and can be counted: in games like chess and Go, the machine can study andRead More


What About Beta? | The October Effect: A Proxy for Patience

Oct 5th, 2020 | Filed under: Newly Added, What About Beta?

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


What If Bob Ross Was a Portfolio Manager?

Sep 14th, 2020 | Filed under: Data Science & AI, State of the Industry, Manager Selection, Newly Added, What About Beta?, Hedge Funds

By Aaron Filbeck, CAIA, CFA, CIPM Associate Director, Content Development at CAIA Association If you’ve ever watched an old Bob Ross video, you’ve probably felt a combination of relaxation and, in many cases, exasperation… “how does he do that so effortlessly?!” While there are rarely “happy accidents” in investing, IRead More


Regulatory Bread and Circuses 

Aug 31st, 2020 | Filed under: State of the Industry, Access to Alternatives, Newly Added, Asset Allocation, What About Beta?

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


Do You Know Your ABZ’s?

Aug 10th, 2020 | Filed under: State of the Industry, Access to Alternatives, Newly Added, Asset Allocation, What About Beta?

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


Politics, Religion, and…Private Equity?

Jul 27th, 2020 | Filed under: Private Equity, Newly Added, What About Beta?

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


The Allusivity Premium

Jun 22nd, 2020 | Filed under: State of the Industry, Access to Alternatives, Newly Added, Asset Allocation, What About Beta?

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


A Target Date for Target Dates

Jun 8th, 2020 | Filed under: State of the Industry, Access to Alternatives, Private Equity, Manager Selection, Newly Added, Asset Allocation, What About Beta?

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


Stewardship: It Hertz When You Ignore It

May 26th, 2020 | Filed under: Private Debt, Newly Added, What About Beta?, Risk Management

Hertz has been around for just over a century. It was started by a fellow name Jacobs in the city of Chicago with a very modest fleet consisting of about a dozen Model Ts. The ensuing years would find the growing franchise initially as a small business owned by JohnRead More


Dugong is the New Black

May 11th, 2020 | Filed under: Newly Added, What About Beta?

By Bill Kelly, CAIA Association CEO The dugong (the second “g” is soft) is a marine mammal and a close relative to the more notorious manatee. They are known for their consumption (eating up to 100 pounds of sea grass a day), their size (weighing up to 2,000 pounds), andRead More


Back(wardization) to the Future

May 3rd, 2020 | Filed under: Newly Added, What About Beta?, Hedge Funds

By Aaron Filbeck, CAIA, CFA, CIPM – Associate Director of Content Development at CAIA Association In the title reference, the character Dr. Emmett Brown says this about a bolt of lightning: “Unfortunately, you never know when or where it is ever gonna strike.” Frame of reference is everything when itRead More


Next Customer!

Apr 20th, 2020 | Filed under: State of the Industry, Newly Added, Asset Allocation, What About Beta?

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


The Unmasking of ESG 

Apr 6th, 2020 | Filed under: State of the Industry, Newly Added, What About Beta?, ESG

By Bill Kelly, CEO, CAIA Association PPE has entered the global vernacular, courtesy of another (deadly) acronym now known as COVID-19. The latter needs no additional introduction, as the former (Personal Protective Equipment) has been one of the many combat weapons to staunch the relentless march of what is now a global pandemic. Of the many things we are learningRead More


(SH)Elijah

Mar 9th, 2020 | Filed under: Newly Added, What About Beta?

By Bill Kelly, CEO, CAIA Association You don’t really need to be a Talmud scholar to know about the mission and purpose of the prophet Elijah. A fixture of the Passover Seder, he is always accorded an empty seat at the table, replete with an extra cup and a remainingRead More


Avoiding Silver Bullets

Feb 24th, 2020 | Filed under: State of the Industry, Access to Alternatives, Newly Added, Asset Allocation, What About Beta?, Hedge Funds

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


Climate: The ‘OUR’ Between Dog and Wolf

Feb 10th, 2020 | Filed under: State of the Industry, Newly Added, Asset Allocation, What About Beta?, ESG, Hedge Funds

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


Leery Funk’s Open Letter to Sovereign Leaders

Jan 27th, 2020 | Filed under: State of the Industry, Access to Alternatives, Private Equity, Manager Selection, Newly Added, Asset Allocation, What About Beta?, ESG

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


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

Jan 21st, 2020 | Filed under: State of the Industry, Access to Alternatives, Manager Selection, Newly Added, Asset Allocation, What About Beta?, Risk Management

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


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

Jan 6th, 2020 | Filed under: Data Science & AI, State of the Industry, Access to Alternatives, Manager Selection, Asset Allocation, What About Beta?

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


Ebenezer Scrooge: An Alternative View

Dec 23rd, 2019 | Filed under: State of the Industry, Manager Selection, Newly Added, What About Beta?, ESG, Hedge Funds

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


Requiem for a Heavyweight

Dec 2nd, 2019 | Filed under: Manager Selection, Newly Added, What About Beta?, Risk Management

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


Democratization Without Education

Nov 18th, 2019 | Filed under: State of the Industry, Access to Alternatives, Private Equity, Manager Selection, Newly Added, Asset Allocation, What About Beta?

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


A Harvard Education

Oct 28th, 2019 | Filed under: State of the Industry, Newly Added, Asset Allocation, What About Beta?

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


Of Colossal Fools and Fossil Fuels

Oct 15th, 2019 | Filed under: State of the Industry, Newly Added, Asset Allocation, What About Beta?, ESG

By Bill Kelly, CEO, CAIA Association The saying “fool me once shame on you, fool me twice shame on me” has its origins all the way back to the 1600’s when most of the carbon now in our atmosphere was “safely” encased in limestone and other rock formations within theRead More


Spoti-sly

Sep 30th, 2019 | Filed under: Access to Alternatives, Private Equity, Newly Added, Asset Allocation, What About Beta?

By Bill Kelly, CEO, CAIA Association How do you turn a millennial into a capitalist? Sell her SNAP in the post-IPO market. A little hindsight here shows how ridiculous this all looked. The initial sellers of the shares were the founders and their VCs (just under 30% of the offering),Read More


Zebras Are Reactionaries

Sep 9th, 2019 | Filed under: State of the Industry, Newly Added, Asset Allocation, What About Beta?, Risk Management, Hedge Funds

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


Whatfore Art Thou Use of Alt-data?

Aug 26th, 2019 | Filed under: Data Science & AI, State of the Industry, Newly Added, Asset Allocation, What About Beta?

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


Postcards from the Edge

Aug 5th, 2019 | Filed under: State of the Industry, Access to Alternatives, Private Equity, Newly Added, What About Beta?, Hedge Funds

By Bill Kelly, CEO, CAIA Association As the calendar turns to August we are in the waning weeks of summer in the northern hemisphere. Perhaps it is a good time to turn to the mailbag to see who has been doing what in this halcyon season… From Jerome in DC Read More


The Audacity of Opacity

Jul 15th, 2019 | Filed under: State of the Industry, Private Equity, Manager Selection, Newly Added, Asset Allocation, What About Beta?, Hedge Funds

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


SOS

Jul 1st, 2019 | Filed under: State of the Industry, Access to Alternatives, Newly Added, Asset Allocation, What About Beta?

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


It’s YOUR Reputation; Time to Beale With It! 

Jun 10th, 2019 | Filed under: State of the Industry, Newly Added, What About Beta?, Hedge Funds

By Bill Kelly, CAIA Association CEO The satirical movie Network was released almost 40 years ago. The character Howard Beale, played by the actor Peter Finch, is one of the more enduring legacies of this film. He is a news anchor for the UBS Network, and he is to be terminated in two weeks for fallingRead More


The 60/40 Allocation and #TINA

May 28th, 2019 | Filed under: Newly Added, What About Beta?

By Bill Kelly, CAIA Association CEO The “lower for longer” interest rate policy of the G4 Central Banks has morphed into what seems like “lower forever.” The 35-year bull market run in the fixed income space is over, and the thought of this 40% slice of the allocation pie producingRead More


‘There You Go Again’

May 6th, 2019 | Filed under: State of the Industry, Private Equity, Private Debt, Newly Added, What About Beta?, Hedge Funds

By Bill Kelly, CEO, CAIA Association This now famous line was uttered by then citizen Ronald Reagan almost 40 years ago in a presidential debate with the incumbent Jimmy Carter. It was a simple and clever turn of a phrase acting as a counter-punch to Carter’s excoriation of Reagan’s priorRead More


Earth to Kerth… It’s Our Day 

Apr 22nd, 2019 | Filed under: Emerging Asset Classes, State of the Industry, Newly Added, What About Beta?, ESG

By Bill Kelly, CEO, CAIA Association The Urban Dictionary turned 20 years old last month. If staying power means anything, perhaps it is time to use it as a citable source for modern day lexicon of words like Kerth. It seems Kerth is a name for someone who connotes sweetness, politeness,Read More


Let WSYD Be Your Guide 

Apr 8th, 2019 | Filed under: State of the Industry, Newly Added, Asset Allocation, What About Beta?, Hedge Funds

By Bill Kelly, CEO, CAIA Association WWJD has been a motto for certain holy rollers who ask, ‘What Would Jesus Do?’ in any variety of situations. Perhaps this phrase is meant to serve as an ethical guide or a touchstone back to someone who might just know what is right more than you do. ThisRead More


Oak-and-Tree and Larry Grows… 

Mar 25th, 2019 | Filed under: Newly Added, Asset Allocation, What About Beta?, Risk Management

By Bill Kelly, CEO, CAIA Association The adaptation to this week’s title harkens back to late 19th century Scotland where this was a play song more popularly known as “Oats and Beans and Barley Grow.” It was a song of action in a time and a place—where most of the wakingRead More


Dry, Drier, Driest 

Mar 11th, 2019 | Filed under: Newly Added, What About Beta?

By Bill Kelly, CEO, CAIA Association When it comes to dryness there are degrees of gradation, especially when it comes to the most discriminating tastes amongst us. Whether we are talking martinis, snow, or our skin, dry doesn’t always mean dry. We slake, salve, or schuss our way through, alwaysRead More


Waiting for Godot

Feb 25th, 2019 | Filed under: State of the Industry, Manager Selection, Newly Added, Asset Allocation, What About Beta?

By Bill Kelly, CEO, CAIA Association Waiting for Godot is a tragic comedy play by Samuel Beckett which first premiered on stage in Paris in 1953. There is only one scene and two primary characters who seem to know that they must wait for someone named Godot. They don’t knowRead More