Why investors should integrate green revenues into portfolio construction
A recent paper from Singapore's GIC, FTSERussell and GMO explains why (and how) investors should integrate green revenues into their portfolio construction.
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Seeking partners in Alaska
The $46-billion Alaska Permanent Fund Corporation (APFC) will launch PCIO, a private equity version of its successful external chief-investment-officer partnerships, and is looking for partners now. When the fund moved to a risk-based factor allocation a few years ago, it allocated mandates under its special opportunities bucket to five managers – PIMCO, GMO, Bridgewater, AQR
A series of shorts
don’t make a long
It is easy for long-term investors to avoid short termism, and the solution lies in avoiding momentum and conducting risk analysis using cash flows – not market pricing. “Diversification is a joke. Diversification and risk analysis relies on pricing, but pricing is distorted because it’s driven by momentum,” says Paul Woolley, chairman of the Paul
GMO boss warns of food crisis
Global investors should have as much as 30 per cent of their portfolios exposed to natural resources, more than double the current market average, because of a burgeoning worldwide food crisis, GMO’s Jeremy Grantham says. The droughts afflicting farmers in the US and the subsequent spike in food commodity prices are just forerunners to the
Risk modelling
requires review
Advocating the use of financial models a six-year-old could understand and warning that the dogmatic belief in overly complex and unrealistic models contributed to the financial crisis were some of the challenging views put to the attendees of the recent CFA Institute’s annual conference. Throwing down the gauntlet was GMO asset-allocation team member James Montier,
GMO’s Grantham bets against irrational markets
Supposedly long-term investors typically have the patience to wait about three years to see if an investment strategy will pay-off with managers needing to manage to their own and their client’s career risk tolerance, investment icon and Grantham, Mayo and van Otterloo (GMO) founder Jeremy Grantham says. In his quarterly letter to investors, Grantham says
Sustainability