Weekend Reads: The Future of 2018

For the most part, the performance dispersion between mutual funds and ETFs was minimal, with one exception being in the Managed Futures category. Here is the same dispersion chart as above with that category in isolation:

Comparing Alt ETFs To Mutual Funds – (ETF)

 

Last month, I accompanied Ms. Li and roughly a dozen other venture capitalists on a three-day bus trip through the Midwest, with stops in Youngstown and Akron, Ohio; Detroit and Flint, Mich.; and South Bend, Ind. The trip, which took place on a luxury bus outfitted with a supply of vegan doughnuts and coal-infused kombucha, was known as the “Comeback Cities Tour.”

Silicon Valley Is Over, Says Silicon Valley – (New York Times)

 

What has worked in recent years is unlikely to work in coming years,” he said. “CTAs are less able to hedge equity corrections because they’ve gone more long term. This is a byproduct of the market environment not being difficult enough, making the strategies lazier.”

Trend-Chasing Quants Post Worst Returns in 17 Years – (Bloomberg)

 

If commodities are back and you’re getting ready to ride the wave, make sure the undercurrent doesn’t suck your portfolio under.

Gundlach and Tudor Jones Say It’s Time To Buy Commodities – (RCM’s Attain Alternatives Blog)

 

Nearly 70% of the state’s projected revenue of about $135 billion next fiscal year is derived from personal income taxes, according to the governor’s office.

Jerry Brown’s Legacy: A $6.1 Billion Budget Surplus in California – (Wall Street Journal)

 

Coinbase Index Fund will give investors exposure to all digital assets listed on Coinbase’s exchange, GDAX, weighted by market capitalization. If a new asset is listed on the exchange, it will be automatically added to the fund.

Announcing Coinbase Index Fund – (CoinBase)

 

Still, many macro funds are hopeful the spike in the Cboe Volatility Index .VIX means a comeback. Rising volatility produces market inefficiencies – assets are mispriced amid the chaos and traders profit by exploiting the discrepancy in prices.

Some U.S. macro hedge funds thrive with renewed volatility – (Reuters)

 

Those include discounts for early investors or those willing to lock up their capital, promising a minimum return level before levying incentive fees and offering the so-called 1-or-30 model, which charges the higher of a 1 percent management fee or 30 percent performance fee.

How Hedge Funds Are Winning Back Investors – (Bloomberg)

 

We thought it would be fun to catch up with Adam White, Vice President and General Manager of GDAX, to get his perspective on the GDAX exchange, partnering with TT and the crypto market. Many thanks, Adam, for taking the time to share your thoughts.

5 Questions with Adam White of Coinbase’s GDAX, the U.S.’s Largest Digital Currency Exchange – (TT)

 

This raises the question for investors: Is there a lower cost, higher alpha way to access CTA performance?

Commentary: Do ‘trend’ risk premiums explain CTA performance? –(Pension and Investments)

 

The harm from shielding steel and aluminum makers from exports will outweigh any benefits.

Trump’s Tariffs Look Like a Self-Inflicted Wound – (Bloomberg)

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.

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.

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.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

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