The Lindy Effect: The expected remaining life of an item is proportional to its past life. Q2 2020 hedge fund letters, conferences and more “The Lindy effect is one of the most useful, robust, and universal heuristics I know.” - Nassim Taleb Advisor Perspectives welcomes guest contributions. The views presented here do...
I give these brilliant investment strategies a failing grade. Q2 2020 hedge fund letters, conferences and more As advisors and investors, we have evolved over the past several decades from foolish tactics such as picking hot stocks and market timing to more sophisticated strategies. Those sophisticated strategies are supported by peer-reviewed...
Colorado and South Carolina have pulled back from making additional payments to their underfunded pensions, moves that may play out in other states that are struggling to balance budgets as the coronavirus ravages tax revenue. Q2 2020 hedge fund letters, conferences and more kalhh / Pixabay Colorado eliminated a $225 million supplemental...
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives. Q2 2020 hedge fund letters, conferences and more Analysts have many ways to estimate expected market returns. The challenge is to identify those few that provide usable information for making investment decisions. In this...
Over the weekend the world learned of the Senate Republican’s “opening bid” for the next round of fiscal stimulus in the United States. That number came in at a nice, round $1tn. Now, as large as that number is, it still pales in comparison to the $3.5tn House bill...
BlackRock Inc. Chief Executive Officer Larry Fink sold $24.2 million of stock in the world’s largest asset manager, bringing his sales this year to $74.4 million. Q2 2020 hedge fund letters, conferences and more Fink disposed of 41,706 shares at an average price of $580.29 on July 21, according to a...
Investors have no chance of adding alpha by pursuing an “endowment” model. New research shows that even the most sophisticated institutions do worse when they increase exposure to alternative asset classes. Q2 2020 hedge fund letters, conferences and more stevepb / Pixabay Educational institutions hold hundreds of billions of dollars in endowment...
If you were to ask investors who is the greatest investors of our time, Warren Buffett’s name would be at or near the top of everyone’s list. Buffett’s two great contributions have been that he has taught investors to have a value approach and that he has preached the...
On July 21, 2020, this article was corrected to attribute the term "animal spirits" to John Maynard Keynes instead of Adam Smith. Q2 2020 hedge fund letters, conferences and more What return can I expect from my stock investments over the next 10 years? The most common answer is to use the...
The debuts of actively managed ETFs are outnumbering those of traditional funds at a record pace as issuers bet on investor demand for stock picking. Q2 2020 hedge fund letters, conferences and more Shutterbug75 / Pixabay It’s the first time in at least 20 years that this has happened, with 68 active...
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives. Unlike passive investors, who buy at any price, active managers police markets to drive price discovery. But the active police has been defunded. Apple’s stock is up more than 20% since the market peak...
Bridgewater Associates and former co-Chief Executive Officer Eileen Murray are still negotiating an exit package three months after she left the world’s biggest hedge fund -- a fight that has dragged on because Bridgewater’s offer is both less than what has been paid to men who left the firm...
A year ago, you couldn’t get Wall Street to touch most gold miners’ stocks. Today, it’s throwing billions at the industry. Q2 2020 hedge fund letters, conferences and more Stevebidmead / Pixabay Precious-metals miners once seen as too leveraged and high-risk for the typical investor raised $2.4 billion in secondary equity offerings...
The bond ETF universe could almost double in less than four years as traditional fixed-income heavyweights embrace the funds, according to BlackRock Inc. Q2 2020 hedge fund letters, conferences and more stevepb / Pixabay Institutional investors such as pension funds and insurance companies are increasingly warming to bond exchange-traded funds in the...
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives. Q2 2020 hedge fund letters, conferences and more Even before the coronavirus my firm were not big fans of the airlines business. Planes are expensive. Airlines have to pay for them whether they are...
Even before this year’s market crash, the wealth-management industry’s richest clients were frustrated about fees. Q2 2020 hedge fund letters, conferences and more A third of those with more than $1 million of investable assets were uncomfortable with them in 2019, according to Capgemini SE’s World Wealth Report 2020. Such discomfort...
Bobby Console-Verma isn’t letting the pandemic slow down his business plans. Q1 2020 hedge fund letters, conferences and more Maklay62 / Pixabaycash The former investment banker and fund manager has set up 1fs:Wealth, a London-based technology firm that aims to help family offices and rich individuals manage their assets. Console-Verma, 54, has...
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives. Q1 2020 hedge fund letters, conferences and more Historically low bond yields threaten the diversification value of bonds in the traditional 60/40 allocation. The graph below shows how many basis points benchmark U.S. Treasury securities...
After years of losing both clients and clout in financial markets, signs are emerging that hedge funds are back in favor in the U.S. Q1 2020 hedge fund letters, conferences and more In the past few months, investors such as George Soros’s family office and the Texas pension fund have been...
The Federal Reserve became one of the top holders in some of the world’s largest credit ETFs less than two months after stepping into the market. Q1 2020 hedge fund letters, conferences and more skeeze / Pixabay The central bank owns more than 13 million shares of the $54 billion iShares iBoxx...
Large-scale studies have shown that actively managed funds underperform their passive benchmarks on an absolute basis. New research shows that this is also true on a risk-adjusted basis – and this is true across asset classes and sub-classes. Q1 2020 hedge fund letters, conferences and more Alexas_Fotos / Pixabay Since 2002, S&P...
Federal Reserve Chair Jerome Powell stressed to Congress Tuesday that getting the coronavirus under control was vital as the U.S. economy rebounds from the sharpest contraction on record. Q1 2020 hedge fund letters, conferences and more ”We have entered an important new phase and have done so sooner than expected,” Powell...
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