Gavin Cassar from The Wharton School at the University of Pennsylvania, and Joseph Gerakos at the Booth School of Business, University of Chicago, investigate the determinants and effectiveness of methods that hedge funds use to manage portfolio risk. They find that levered funds are more likely to use formal models to evaluate portfolio risk.
CIOs’ confidence wanes as agility becomes the focus
The 2023 CIO Sentiment Survey, a collaboration between Top1000funds.com and CaseyQuirk, finds asset owners focusing on agility as they observe dramatic market changes not seen in a generation. Only 36 per cent of CIOs are confident they will reach their return targets in 2023.
Amanda WhiteMarch 28, 2023
Global SWF: GIC leads; oil fuels Gulf funds and hedge funds give refuge
Singapore’s GIC invested more than any other SWF last year and fuelled by buoyant oil revenues, Gulf SWFs have had and are expected to continue their investment rampage. Elsewhere, hedge funds have proved one of the most successful allocations, particularly for ADIA, says Global SWF in its annual report.
Sarah RundellJanuary 3, 2023
Don’t shy away from emerging markets in volatile times
Good quality, holistic research is more important than ever when assessing emerging markets investments with a sustainability lens, argues a portfolio manager at Newton Investment Management.
Ben HurleyDecember 6, 2022
ADIA sets up ADIA Labs in another boost to tech capabilities
ADIA is setting up ADIA Labs in another boost to its tech capabilities. Focussing on data science, AI, machine learning and quantum computing, the research unit will help inform global trends set to drive returns in the future like the transition, blockchain, financial inclusion or space.
Sarah RundellOctober 20, 2022
Sustainability Harvard - September 2022
Kotkin: China bears may have been right about Western resilience
ESG-focussed investors are having a hard time justifying their China exposure to boards. They will need to develop new narratives if they want to stay in the China game, argues historian Stephen Kotkin.
Ben HurleySeptember 30, 2022
Crypto not suitable for fiduciaries, but opportunities in underlying tech
Cryptocurrencies do not live up to the investment hype and offer nothing but enormous volatility to institutional portfolios, according to PGIM’s mega-trend research team.
Ben HurleySeptember 7, 2022
Warnings increase as rising rates puts LDI under strain
The number of warning voices increases as rising interest rates puts pressure on LDI strategies, forcing more pension funds to sell assets to maintain leverage levels.
Sarah RundellSeptember 5, 2022
The landscape for this kind of trading has changed tremendously. Thirty years ago there was only 200 million professionally managed trading these futures contracts, today there is roughly 200 billion. When the funds ( managed futures ) pull the plug these days there is an avalanche of money hitting the exit door. As a result, volatility has increased. In addition, Commodity Futures Trading Commission growth has not kept up with the growth of the industry and they are consequently understaffed and unequipped to deal with today’s marketplace. Play at your own risk.