The game plan that received the most new cash over the 12 months was managed futures, attracting a net $10.3 billion, according to industry researcher eVestment. Got Alpha? Then Don’t Cast Stones – (Bloomberg) Despite the recent under-performance, the trend following index still managed to return a healthy 13% annualized over the last 10 […]
Category: Other Voices
25
Jan
2017
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 […]
28
Dec
2016
Alternative Links: 15% of Assets to Liquid Alts
That’s why Grant Engelbart, portfolio manager at the $7 billion CLS Investments, says he plans to use more alternative funds next year. While he typically allocates as much as 15% of assets to liquid alts, Engelbart stresses the need to scrutinize these funds, since many are highly correlated to the assets people are looking to […]
21
Dec
2016
Alternative Links: Managed Futures Gaining Traction
“The survey is based on responses from 101 conference attendees, all of whom described themselves as financial advisers and registered investment advisers. Nearly half, or 47%, currently use managed futures in their client accounts, and 41% intend to increase that allocation next year.” Managed futures funds gaining traction among advisers – (Investment News) “Commodity […]
16
Dec
2016
Weekend Reads: A Harry Potter Spider and 3 Tons of Gold
We couldn’t help ourselves but create an infographic for Star War fans to navigate the galaxy of investments. STAR WARS: THE FAN’S GUIDE TO INVESTING – (RCM’s Attain Alternative Blog) Action and connection with people in your community pays itself back tenfold in meeting our basic human need to feel useful. ‘Tis the season to […]
15
Dec
2016
Alternative Links: Fed Raises Rates
#FED DAY Results:$SPX: – .8%$NDX: -.3%$DJIA: -.6%$GLD: -1.4%$TLT: -1.1% — StockTwits (@StockTwits) December 14, 2016 They also indicated they see a brightening economic outlook and expect to raise short-term rates next year by another 0.75 percentage point—likely in three quarter-point moves. Fed Raises Rates for First Time in 2016, Anticipates 3 Increases in […]
07
Dec
2016
Alternative Links: The Great Rotation
Diversification is not fun, but intelligent investing shouldn’t be about having fun. Diversification Is No Fun – (A Wealth of Common Sense) Renaissance’s success, of course, ultimately lies with the people who built, improved upon, and maintain Medallion’s models, many of whom met at IBM in the 1980s, where they used statistical analysis to […]
