Investors tend to give too much attention to short-term relative performance figures. As a solution to this, the amLeague organises a paper trading game where managers play as if they were managing a real portfolio.
Risk parity strategies have been great for the last 20 years, profiting from the fall in interest rates and the capital gains it’s generated while avoiding the poor performance of equities. The question now is whether it still makes sense with interest rates having fallen to zero?
During the summer, we created a quiz to work out which of the four main alpha quant factors suits each individuals personality best. Being quants, we could not resist the temptation to analyse the results…
The present situation of low interest rates for a “considerable time” creates pressure for both long-term investors and asset managers. Denial or frustration a zero-yield world is still widespread in our industry, however we are starting to see a period of ‘experimentation’.
Highlighting the importance of combining the four cardinal virtues of Plato in relation to the four main long-term factors of equity outperformance, rather than “timing” them.
On Thursday 18th Sept, Scotland voted in favour of staying a part of the 307-year-old union
Although market estimates of the popularity of the new TLTROs had been optimistic, the ECB has released disappointing data as to how much banks will in fact borrow
Many investors became accustomed to earning attractive returns with hardly any risk from investing in money markets, but with interest rates now lingering near all-time lows, they have little choice but to take more risk to earn anything like an appealing yield.
On 18 September, residents of Scotland will be asked, ‘Should Scotland be an independent country?’ Here’s a short overview of the Scottish referendum.
India’s GDP growth for the first quarter (April-June) of the country’s fiscal year 2014-15 surprised positively at 5.7%, compared to 4.6% in the previous quarter.
Investors have been braced for more monetary stimulus since Mario Draghi signalled willingness for imminent quantitative easing.
Equity and bond investors seeking regular insights into economic performance will look at views on the ISM monthly business reports including PMI
The constraints of the zero lower bound means developed economies may be confronted with the prospect of a future of chronically weak demand and slow economic growth
China issued reform guidelines in July relating to its decade-old household registration (or hu kou) system.
Most investors are risk-averse: they are more sensitive about losing money (even if the loss is unrealised, i.e. they haven’t sold the loss-making position yet) than about missing out on a nice opportunity.
Low-volatility equities are playing an important role in investor portfolios. Here we address the important question of what investors should expect in the short-term from investing in these funds.
Low-volatility equities are playing an important role in investor portfolios. Here we address the important question of what expected returns and volatility assumptions should be used in order to determine their allocation.
The fallout of the Great Recession and the way it has been addressed have only made finding an appropriate investment strategy more daunting than ever.