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Ericsson picking stocks again
In a move that differentiates it from the herd, the fund for employees of Ericsson, has added active long-only managers for a concentrated equities portfolio of 30-50 shares, shunning passive.
Costs cast increasing doubt over hedge fund relevance
The inability to scale hedge fund exposures and risks, has led many large investors, like CalPERS this week and ATP last year, to exit their hedge fund programs. Complexity continues to be a drain on the relevancy of hedge funds, but importantly cost is driving the agendas of these investors. As AQR’s Cliff Asness admits,
Beyond backtests: considering the robustness of smart beta
Systematic equity investment strategies – so-called smart beta strategies – are usually marketed on the basis of outperformance. However, it is important to recognise that performance analysis is typically conducted on backtests that apply the smart beta methodology to historical stock returns. Concerning actual investment decisions, a relevant question, therefore, is how robust the outperformance
Data doesn’t lie: illiquidity premium doesn’t exist
There is no 3 per cent illiquidity premium in private equity, according to research by CEM Benchmarking. A cost drag on private assets cancels out the returns of investing in private equity and real estate for those investors that outsource to external providers, the research finds. CEM Benchmarking, which has a database of 354 pension
Performance fees hardly worth it
An analysis of 218 Dutch pension funds has shown that paying performance fees has little impact on performance. Size of fund and specialisation were deemed more important for net returns.
Fiduciary investor think tank – delegate profile
Three finance professors from Stanford University presented their latest papers on active management, private equity and financial regulation, which were debated and work-shopped by US institutional investors in a one-day investment think tank. Chief investment officers from US public and corporate pension funds, endowments and foundations convened at Menlo Park, the home of Stanford University,
Trading rules and infinite monkey theory
Common sense must be applied to statistical data and rules-based investing should only be adopted with caution. Investors should prepare for the inevitable moment when the game suddenly changes.
Investing in volatile markets
The Future Fund portfolio has material exposure to two asset classes out of favour with many long-term investors. Chief investment officer, Raphael Arndt, explains why.
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