EQIRA: Empirical and Quantitative Investment Research and Analysis

News Worth Reading: August 26, 2016

There’s always great information out there if you know where to look. The following comprises our list of news worth reading from the past week.

Hedge Funds

  • Funds of funds are increasingly structuring portfolios based on factor exposures (pionline)
  • Investors pulled another $25 billion from hedge funds in July (finalternatives)
  • “Hedge” funds are no longer named appropriately (businessinsider)
  • The interests of hedge fund managers and investors are not aligned (reuters)
  • Merger arb assets have grown from $100 million in 1990 to $21 billion today (bloomberg)
  • Compensation at Asian hedge funds is likely to be way down this year (efinancialcareers)
  • Citigroup has lost its last prop trader (wsj)
  • A few interpretations of the recent shake-ups at Tudor Investment Corp. (awealthofcommonsense)

Investing

  • Generating alpha is less important than getting the right risk exposures (pragcap)
  • You should prioritize sector diversification over country diversification (schwab)
  • How volatility can work in your favor (awealthofcommonsense)
  • High frequency trading profits are on the decline (bloomberg)
  • A case against using the Shiller CAPE as a valuation measure (aswathdamodaran)
  • Several pension funds are taking on tail risk to boost returns (wsj)
  • U.S. foundations returned 0% last year (ft)

Research

  • Hedge funds increase their bets on long shots when they are underperforming (ssrn)

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