Only rarely — if at all — will the [outcomes] favour the continued employment of a man over a model of a man,”
Technology outsmarts the human investor – (FT)
When an institution allocates to a momentum strategy in the hope of cushioning itself from stock market downdraughts it is really commissioning someone to sell stocks on its behalf into a falling market; no different to the failed portfolio insurance strategy that was implicated in the 1987 crash,” he wrote. Mr Harding declined to comment beyond the letter.
Rise in new form of ‘portfolio insurance’ sparks fears – (FT)
Consequently, many retired investors have embraced alternatives within their portfolios, and perhaps there is no greater diversified asset class than managed futures. Let’s look at the basics.
Money Talks: Keeping an eye on the prize – (Marco Eagle)
A mob of trend-followers is eroding the advantage that quantitative analysis usually provides to short-term equity trading strategies more quickly than normal, according to research from Bank of America Corp.
Quants Are Eating Away at Wall Street’s Edge – (Bloomberg)
In this analysis we compare the classic 60/40 portfolio with other asset classes and explore the diversification benefits of adding managed futures by looking at the returns of a blended portfolio consisting of 33% global bonds, 33% global equities and 33% managed futures.
The bell tolls for 60/40: adding managed futures to the mix – (City Wire Selector)
The US$261.0 billion CTA/managed futures mandated hedge fund industry saw the highest net investor inflows among strategic mandates for 2017 (US$8.4 billion)
AUM for the North American hedge fund industry has reached a record high of US$1.52 trillion – (ValueWalk)
Notice the very low correlation between the returns of the top ten trend following funds when compared to the S&P500 Total Return Index. This is a very well known feature to portfolio managers who are looking at generating superior risk weighted returns by allocating some % of their total portfolio to this alternative investment class.
Review of Established Trend Following Fund Managers – (Richard Brennan)
The different types of financial risks to beware of is long: permanent loss, longevity, liquidity, etc. but I’d argue for just about everyone volatility should be included in this list as well.
Contradicting Warren Buffett: When Volatility is Risk – (Cordant)
Currently, there is approximately $45 billion invested in alternative ETFs, according to Morningstar – just 2% of total ETF assets.
Alternative ETFs: The Future is Bright – (ETF Trends)
Iowa has roughly 88,000 farms and 129,000 farm operators. According to the U.S. Department of Agriculture’s 2012 Census of Agriculture, more than 97 percent of Iowa farms are owned by families.
No, Really, Iowa’s Farms are Almost Entirely Family Owned – (Iowa Ag News Connection)