Alternative Links: The Great Rotation

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Diversification is not fun, but intelligent investing shouldn’t be about having fun.

Diversification Is No Fun – (A Wealth of Common Sense)

 

Renaissance’s success, of course, ultimately lies with the people who built, improved upon, and maintain Medallion’s models, many of whom met at IBM in the 1980s, where they used statistical analysis to tackle daunting linguistic challenges.

Inside a Moneymaking Machine Like No Other – (Bloomberg)

 

The Commodity Futures Trading Commission voted unanimously Monday to float, for the third time since 2011, a proposed rule that would cap the size of trading positions firms could take in more than two dozen core commodity contracts, including a variety of energy and precious-metals commodities, to curb any one trader’s influence.

CFTC Leaves Shaping Position Limits Rule to Trump Administration – (Wall Street Journal)

 

More than $30 billion have exited bond mutual and exchange-traded funds over the past five weeks, the largest outflow over the same period since 2013

Bond Fund Withdrawals Renew Chatter About ‘Great Rotation’ – (Wall Street Journal)

 

We mean the worst month in history for the the Bloomberg Barclays Global Aggregate Total Return Index, a bond market index that’s more than two decades old.

Odd Lots: Was November the Start of a Huge Turning Point In Markets? – (Bloomberg)

 

The moves by CME Group Inc. and Intercontinental Exchange Inc. come as increasing shipments of liquefied natural gas from the U.S. and elsewhere have helped create a spot, or short term market, for this commodity, which is transported on ships in liquid form.

New Market Aims to Make Trading Natural Gas More Like Oil – (Wall Street Journal)

 

According to the CFTC’s weekly Commitment of Traders data up to November 29  so-called managed money investors have taken net longs to a fresh recored high of just under 81,000 lots.

Hedge funds make $5 billion bet on rising copper price – (Mining)

 

Half the money will go to a fund run by Renaissance Technologies, the firm founded by Jim Simons, as the school unwinds its investments mostly from long-short hedge funds, said Chief Investment Officer Philip Zecher. Michigan State is switching strategies for part of the allocation, including its first deployment in quantitative funds, rather than abandoning hedge funds.

Michigan State switches to quants as hedge funds drive loss – (Crain’s Detroit)

 

South Carolina’s retirees over the past decade, in the largest pension plan that serves most workers, received an average annual starting retirement benefit of slightly more than $17,000.

South Carolina’s looming pension crisis – (Post and Courier)

 

The goal, as it is with all alternative investments, is to create a return stream that is uncorrelated with more conventional stock and bond performance.

Know Your Audience – (A Wealth of Common Sense)

 

The agency is seeking a range of civil penalties, including potentially banning Wilson from the industry and possibly fining DRW more than $100 million,

DRW’s Wilson faces industry ban in CFTC showdown – (Crain’s Chicago)

 

The largest hedge funds have been more successful than smaller ones at raising money

Hedge Funds Get Big or Go Home – (Bloomberg)

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The performance data displayed herein is compiled from various sources, including BarclayHedge, RCM's own estimates of performance based on account managed by advisors on its books, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

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