Weekend Reads: Price War

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)  

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