Michael Recce: The goldilocks approach to neuroscience, AI and investing

Apologies for the sound here, this interview was recorded using Skype and occasionally the quality drops.

I chat with Michael, Chief Data Scientist at Neuberger Berman, on using alternative data sets to improve insights into portfolios, deep diving into specific companies and industries and how these sets allow us to look at the world in a richer and more immediate fashion than ever before.

Nothing on this podcast is to be considered investment advice or a recommendation. No investment decision or activitiy should be undertaken without first seeking qualified and professional advice.

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Why traditional investment committees can amplify group biases

Why traditional investment committees can amplify group biases

Investment committee meetings, a governance cornerstone at every asset owner organisation, run the risk of amplifying group biases and social dynamics, and can push the IC towards recommending more extreme investment positions collectively than the average of their individual views. Bernhard Scherer, head of portfolio implementation at ADIA, unpacks the thesis in a new paper.

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Emerging and frontier markets continue darling run

Global equity markets significantly underperformed emerging and frontier markets in 2010, evidenced by MSCI Indices end of  year data, with some emerging markets returning as much as 50 per cent and some frontier markest returning 70 per cent for the year.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Japan fund reduces domestic bond weighting

The world’s largest investor, the ¥117,643 billion ($1.43 trillion) Government Pension Investment Fund of Japan (GPIF) has reduced its weighting to domestic bonds by more than 1 per cent, moving the money into short term assets.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

How do hedge funds manage portfolio risk?

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.mrec4inarticleinline Sponsored

Private equity in the 21st century

This detailed research looks at cross-sectional and time-series cash flow performance of  a large sample of private equity funds across a range of asset classes, and examines the relationship with the management contracts of those funds. It concludes, among other things, that there is some evidence that funds with lower GP capital commitments outperform.mrec4inarticleinline Sponsored

Specialised short positions challenge beta behaviour

Long/short funds with specialised short positions have greater beta convexity and present greater liquidity strain in rebalancing, according to new research by Morgan Stanley.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Danger signs surround quantitative easing solution

If the unavailability of credit is not the source of the US economy’s problems then the quantitative easing solution put forward by the US Federal Reserve could be ineffective at best, and at worst full of danger, according to broker and quantitative research firm, H.C. Wainwright & Co Economics.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

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