Weekend Reads: Price War

January 5, 2018 rcm-alternatives 0 comment  Like
Investing Insight, Other Voices, Why Alternatives?

Traditional stockpickers enjoyed a renaissance in 2017, managing on average to narrowly outperform their benchmarks. That helped slow the outflows from US equity mutual funds from nearly $250bn in 2016 to $153bn last year, according to Goldman Sachs.

Stockpickers’ Fees set to suffer From ETF price war – (FT)

 

We can’t tell that story anymore. If you don’t find this terrifying, at least a little, you are made of stronger stuff than me. I find it terrifying, but I also find it beautiful. Everything surprising is beautiful in a way.”

Chess’s New Best Player Is a Fearless, Swashbuckling Algorithm – (FiveThirtyEight)

 

Many RIAs have steered away from offering alternative investments to their clients because they often felt they couldn’t cover the costs or human capital associated. However, the alternative investment platform providers specialize in these nuances and can use their scale and experience to staff employees specializing in these areas.

Alt investments on the rise among RIAs – (Investment News)

 

So, as bubbles develop in certain areas and uncertainty abounds, just remember the early bird gets the worm, but the second mouse gets the cheese.

Let the Paramedics Sort Them Out – (Prag Cap)

 

So when the next jobs report comes out on Feb. 2, there are a couple of things to keep in mind. That unemployment rate in the headlines? It doesn’t really take into account your aunt or your cousin or anyone else who has quit job-hunting for a while or is working less than they want to. And that job growth number? Take it with +/- 120,000 grains of salt.

A Better Way To Think About This Month’s Jobs Numbers – (FiveThirtyEight)

 

The U.S. derivatives regulator will hold two meetings to discuss the procedure and operational controls for listing and trading digital currency futures, it said on Thursday, amid rising concerns over the risks bitcoin poses to the financial system.

U.S. derivatives regulator to review bitcoin futures risks – (Reuters)

 

America consumed 143 billion cubic feet of gas as temperatures dipped to all-time lows on New Year’s Day, topping the previous high of 142 billion from four years ago.

The Seasonality of Commodities – (RCM’s Attain Alternatives Blog)

 

So, how’d the alt funds do last year? Here’s this list, ranked by Sharpe ratios:

Alternative Investment ETFs’ Year-End Review – (Wealth Management)  

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, 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.

The programs listed here are a sub-set of the full list of programs able to be accessed by subscribing to the database and reflect programs we currently work with and/or are more familiar with.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history. Individuals cannot invest in the index itself, and actual rates of return may be significantly different and more volatile than those of the index.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

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Limitations on RCM Quintile + Star Rankings

The Quintile Rankings and RCM Star Rankings shown here are provided for informational purposes only. RCM does not guarantee the accuracy, timeliness or completeness of this information. The ranking methodology is proprietary and the results have not been audited or verified by an independent third party. Some CTAs may employ trading programs or strategies that are riskier than others. CTAs may manage customer accounts differently than their model results shown or make different trades in actual customer accounts versus their own accounts. Different CTAs are subject to different market conditions and risks that can significantly impact actual results. RCM and its affiliates receive compensation from some of the rated CTAs. Investors should perform their own due diligence before investing with any CTA. This ranking information should not be the sole basis for any investment decision.

See the full terms of use and risk disclaimer here.

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