Weekly Newsreel: “Disruptive innovation” in finance
May 18th, 2008 | Filed under: AAA NewsreelsAt CFA Institute: BGI execs looking to upset the apple cart: Innovation, whether social, technological or financial, often follows the same evolutionary path. As BGI’s Blake Grossman told the annual CFA shindig last week, hedge funds and ETFs represent “disruptive innovation” in financial services. (see previous postings on the many parallels between technological innovation and financial innovation. See FT article about Grossman circa 2006).
Advisers debate alternative investments: A panel at the annual meeting of the Investment Company Institute (ICI) shows why alternative investments are still try to crack the retail market (also: another report about discussion of alternatives at the gathering).
Investors stand by 130/30 funds: Although many early 130/30 funds have succumbed to the credit crisis, it seems investors are able to differentiate between bad investment decisions and the potential value-add of short extension strategies.
Finding Alpha in Environmental Performance: The May issue of HedgeWorld’s “Accredited Investor” newsletter includes an article that goes beyond the social/ethical reasons for using environmental performance as an investment criteria. (free reg. required)
Global non-traditional manager searches up 20 percent in 2007: Mercer report shows its all about alpha. While true alternative investments are actually only a part of the “non-traditional” category, Thomson Investment News says: “Last year’s predicted growth in alternative categories has materialised in the UK with a significant increase in activity.”
Mercer’s head of Asia/Pacific Research concurs, telling Thomson: “In 2008, we expect to see growing demand for alternatives, especially given current volatile market conditions…” (free reg. required)
Euromoney/Institutional Investor coverage here. (no reg. required)
Leverage of 130/30 funds can burn: BusinessWeek journalist and 130/30 critic suggests that leverage - no matter the form - is a bad thing.
‘Safe’ funds that have lost money: The Times of London is far less charitable with regard to the rocky start by some UK 130/30 funds.
Managers ready absolute return, alternative funds for tough markets: A survey by S&P confirms our hunch, that alternative investments may just catch on…
