The Derivative.: by rcm-alternatives

20 Jan 2017

Weekend Reads: Revolutionizing Finance

When the corn, wheat and oats futures contracts debuted in 1877, little did the 12 men who founded the Chicago Board of Trade realize they were creating a vehicle that would result in trillions of dollars traded globally every year. How Grain Futures Contracts Revolutionized Finance – (Open Markets)   AQR Capital Management’s flagship managed […]

18 Jan 2017

Alternative Links: The Fiduciary Rule

A “fiduciary duty” is the highest standard of care recognized in American law. Among other things it means that you must act solely in the best interest of the client at all times.” Cliff Asness – Caveat Investor? The “Fiduciary Rule” and Unintended Consequences – (ValueWalk)   The well-known “crisis alpha” characteristics of trend-following strategies […]

13 Jan 2017

Weekend Reads: 45% With No Savings

The firm expects the correlation between equities and bonds to turn positive in coming years, which means it’d be tougher to get foolproof diversification by reallocating between the two asset classes. Now Bernstein is warning about passive *asset allocation* decisions, too – (FT Alphaville)   Gundlach thinks that earnings will go up, but “with an […]

11 Jan 2017

Alternative Links: Scapegoats

As AQR sees it, computer-driven funds are just scapegoats in a doomed quest to explain jarring market movements. Topping the enemies list is JPMorgan Chase & Co.’s Kolanovic, viewed by many as a gnomic visionary after calling an equity rout in the summer of 2015, blaming forced selling by automated funds. Wall Street’s Most Famous […]