Retail Investing

Case study: Straits gives managed futures a facelift

Dec 18th, 2014 | Filed under: Commodities, Retail Investing, Today's Post

As alternative investments become more mainstream, managers who traditionally have operated in the alternatives arena face a number of questions, including what is the right offering, the proper structure and how do we market the new vehicle. Guest columnist Ginger Szala examines the thought processes of one group as they made the leap to retailization.


Liquidity Makers and Takers: A Nobel Prize

Oct 19th, 2014 | Filed under: Academic Research, Retail Investing, Today's Post

The latest Economics Award has drawn the attention of the world briefly to a body of work that has a number of points of interest for the alt-investment community.


Not Your Grandfather’s Market: The Evolution of Liquid Alternatives

Oct 5th, 2014 | Filed under: Alpha Hunters, Alternative Mutual Funds, Liquid Alts, Retail Investing, Today's Post

Guest columnist Andrew Smith, CAIA, traces the rise and growth of liquid alternatives.


Celent Reports on Equity Crowdfunding

Sep 23rd, 2014 | Filed under: Crowdfunding, Retail Investing, Today's Post, Venture capital

A new report from Celent discusses the as-yet unimplemented Title III of the JOBS Act. Celent's Isabella Fonseca offers suggestions for how both wealth managers and tech providers might benefit.


Investing in the Investor

Sep 4th, 2014 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Institutional Investing, Retail Investing, Today's Post

Guest columnist Diane Harrison looks at what advisors think of hedge funds.


Deutsche Bank on Investor Demands Today

Jul 27th, 2014 | Filed under: Alpha Strategies, Institutional Investing, Retail Investing, Today's Post

If such institutions as the ECB keep rewarding indebtedness, then over time they get their way. They'll get a lot of deal making, even if it amounts to a frenzy. Then investors will demand funds that play to that frenzy.


High-end Luxuries: Word of Mouth vs. Digital Platforms

May 6th, 2014 | Filed under: High-net-worth investors, Indexes, Retail Investing, Timely Research, Today's Post

The Big Items subsector of the luxury industry sells yachts, private jets, etc. Fifty-eight percent of the respondents in this subsector told researchers that they would soon increase their digital footprint as part of a growth strategy.


Performance Drag in Alternative Multi-manager Mutual Funds

May 5th, 2014 | Filed under: Alternative Mutual Funds, Hedge Fund Industry Trends, Hedge Fund Strategies, Institutional Investing, Performance, Analytics & Metrics, Retail Investing, Timely Research, Today's Post

Guest columnists Andrew Beer and Michael Weinberg look at the opportunities that lie in the largely untapped alternative mutual fund markets.


Converting to the ’40 Act and a Checklist

Mar 4th, 2014 | Filed under: Alternative Mutual Funds, Hedge Fund Industry Trends, Investment Management Fees, Retail Investing, Today's Post

Why convert a hedge fund to a mutual fund instead of establishing a stand-alone vehicle available to retail investors that could invest alongside the existing hedge fund?


AlphaMetrix: We did nothing wrong!

Jan 22nd, 2014 | Filed under: Commodities, CTA, Insolvency, Institutional Investing, Legislation/Court rulings, Retail Investing, Today's Post

In 2010 AlphaMetrix held a conference in Miami with Harry Markopolos as the keynote speaker. Markopolos' claim to fame is that he told the regulators about Madoff''s Ponzi Scheme, but his words fell on deaf ears. In 2013 AlphaMetrix, which claimed to the be the transparent antidote to Madoff stood accused by the CFTC of moving money in ways it ought not and in 2014, the principals of the firm are asking for a jury trial. It is indeed a tangled web and it is unlikely to be un-weaved any time soon.


Mapping Investor Behavior

Nov 21st, 2013 | Filed under: Alpha Strategies, Behavioral finance, Institutional Investing, Retail Investing, Risk management, Today's Post

Guest columnists from Tesseract Asset Management look at investor behavior and risk management.


Slow Growth and Much Tumult for India’s Mutual Funds

Nov 13th, 2013 | Filed under: Emerging markets, Retail Investing, Today's Post

A new report from Celent wonders why the mutual fund industry is growing so slowly in India, and why it is so over-represented in just five of the cities of the subcontinent.


The Market’s Celestial Navigation Sextant: Five Primary Factors Every Investor Needs To Know

Nov 7th, 2013 | Filed under: Institutional Investing, Retail Investing, Risk management, Today's Post

Guest columnist firm Tesseract on charting proper risk management in rapidly changing seas.


JOBS Act Leaves Crowdfunding Investors Unprotected

Nov 3rd, 2013 | Filed under: Crowdfunding, Retail Investing, Today's Post

Guest columnist Jenny Kassan looks at the potentially unintended consequences of the JOBS Act as it relates to Direct Public Offerings.


Much ado about nothing..in other words, the JOBS Act is finally here

Oct 13th, 2013 | Filed under: Hedge Fund Industry Trends, Institutional Investing, Regulatory, Retail Investing, Timely Research, Today's Post

Guest columnist Diane Harrison looks at the U.S. JOBS Act for what it is...and isn't.


Retail Trading and CFDs: A Conversation with Shai Heffetz

Aug 15th, 2013 | Filed under: Derivatives, Retail Investing, Today's Post

We asked Shai Heffetz, managing director for InterTrader, about the difference between spread betting on the one hand and trading CFDs on the other. Spoiler Alert: In involves the capital gains tax. And it cuts both ways.


Moving Into the 40 Act Space: An Offer of Assistance

Aug 8th, 2013 | Filed under: Alpha Seekers, Alpha Strategies, Alternative Mutual Funds, Hedge Fund Industry Trends, Investment Management Fees, Retail Investing, Today's Post

Citi Prime's report has in mind specifically the situation of hedge fund firms that are interested in expanding into the public-offerings space. They have to keep in mind that they'll have a completely different investing audience from that of the QIPs and institutions to which they are accustomed.


Deloitte CFO Survey Finds Air of Optimism

Jul 24th, 2013 | Filed under: Derivatives, Retail Investing, Today's Post

CFOs' answers to survey questions from Deloitte show that many companies see economic conditions in North America as on the upswing, but that their approaches to the improving condition of this continent will be measured and methodical.


A Third Wave of Alt-Industry Growth is Upon Us

Jun 30th, 2013 | Filed under: Alpha Strategies, Alternative Mutual Funds, Hedge Fund Industry Trends, Retail Investing, Today's Post

Private fund managers who want to be part of this wave, who hope to compete for the retail investment market with their absolute-return and non-correlation toolkit, shouldn’t think it is going to be easy. One of the sections of the SEI report is headed “understanding the hurdles.”


A Plea to the Retail Investors

Jun 2nd, 2013 | Filed under: Alpha Strategies, Book review, Commodities, CTA, Hedge Fund Strategies, Retail Investing, Today's Post

This book, The Alternative Answer: The Nontraditional Investments that Drive the World's Best-Performing Portfolios is an appeal to the retail investor, to those author Bob Rice calls "typical investors," passing along the good news that they are no longer "stuck with the children's menu of investment options."


ISDA & EDHEC Respond to Benchmarks Paper

Mar 26th, 2013 | Filed under: Derivatives, Retail Investing, Today's Post

The benchmarking consultation paper from ESMA/EBA has produced intriguing responses from, among others, the International Swaps and Derivatives Association and the EDHEC-Risk Institute.


Lending Securities: Which Mutual Funds Do It Best

Mar 6th, 2013 | Filed under: Academic Research, Retail Investing, Timely Research, Today's Post

A newly released paper concludes that the returns many mutual funds make from lending their portfolio securities increase as the directors on their boards become more independent. Separately, it is a good sign if the directors have, as the saying goes, 'skin in the game.'


BCG: Private Banking Will Get More Complicated

Oct 18th, 2012 | Filed under: High-net-worth investors, Retail Investing, Today's Post

The development of offshore banking centers, and the diplomatic pressures brought to bear upon them, are such that individual relationship managers may no longer “be able to serve clients from a large number of domiciles because regulatory compliance will become more complex and country-specific – making it impossible to master the distinct requirements of many different client domiciles,” according to the Boston Consulting Group. That is one of many keep-your-chin-up injunctions throughout this report.


The Second Circuit: A Wrestling Ring for Argentina & Creditors

Aug 9th, 2012 | Filed under: Alpha Strategies, Retail Investing, Today's Post

The Clearing House Association has filed an amicus brief in the NML litigation, effectively acting on behalf of its member banks, arguing that the pari passu language in the bonds issued by Argentina in the 1990s folllowed “standard language included in substantially the same form in numerous credit documents,” and contending that a decision upholding the district court would upset “the long-understood meaning of these clauses in the market.”


Catastrophism Versus Darwinism: Dodd-Frank as Climate Change

Mar 14th, 2012 | Filed under: Alpha Strategies, Commodities, CTA, Hedge Fund Industry Trends, Hedge Fund Regulation, Hedge Fund Strategies, Private Equity, Retail Investing, Today's Post

The Grant Thornton paper maintains that the asset management industry achieved "performance and operational efficiencies" during 2011, and this sounds like the sort of marginal adaptation that play a large part in Charles Darwins' writings, to which GT's Winstoin Wilson alluded. But ... the report also treats the regulatory environment as a meteor, capable of wiping out even the best-adapted of pre-collision dinosaurs. So "the Darwinian process" is an odd label for what it describes.


Alpha Hunters: Bringing Long-Short Equity to the Masses

Feb 2nd, 2012 | Filed under: Alpha Hunters, Alpha Strategies, ETFs, Hedge Fund Industry Trends, Hedge Fund Strategies, Retail Investing, Today's Post

AAA sat down with Alex Gurvich and Jim Mitchell, both of The Rockledge Group, an investment advisory firm headquartered in Brooklyn, New York. We began by discussing the mid-January launch of a new product that gives the long-short equity strategy an ETF format, and ended up talking about a good deal else, such as the inherent superiority of ETFs over mutual funds, and Pimco's recent recognition of that fact.


Alpha Hunter Bandon Capital: Alpha for the Small Investor

Dec 19th, 2011 | Filed under: Alpha Hunters, Alpha Strategies, Alternative Mutual Funds, Hedge Fund Industry Trends, Retail Investing, Today's Post

Bandon Capital's managing directors believe it is possible to generate alpha from unique non-market sources, and that they do so through their forecasts of domestic and overseas sovereign interest rates.


‘What Was That You Said…? Retail?’ Just Call it ‘Convergence’

Dec 4th, 2011 | Filed under: Alpha Strategies, Alternative Mutual Funds, Hedge Fund Industry Trends, Hedge Fund Strategies, Retail Investing, Today's Post

A new study from SEI shows If an alternative strategy can be offered in a mutual fund structure it has a much broader market opportunity than if not. Hedge fund managers want the mutual fund market just as mutual fund managers want to use the broader hedge fund range of strategies.


What Los Angeles Traffic Can Teach Us About Investing in Real Estate Today

Oct 23rd, 2011 | Filed under: Alpha Strategies, High-net-worth investors, Real Estate, Retail Investing, Today's Post

This is the first in a series of real estate articles by new editorial board member Jan B. Brzeski, Principal at Arixa Capital Advisors, LLC, Los Angeles, CA.


Alpha Hunter Krishna Menani: The Opportunities and Risks in Bond Markets

Aug 11th, 2011 | Filed under: Alpha Hunters, Hedge Fund Operations and Risk Management, Institutional Investing, Retail Investing, Today's Post

In any economic system, the fixed-income market plays an essential role as one of the principal ways of financing enterprise (be it corporate or sovereign).  Research shows that at the end of 2010, the global bond market had amounts outstanding of over US$95 trillion (to put that in context, the World Bank reported the total […]


Everybody Back in the Water! Deep Diving the Family Office Investment Pool

Jul 28th, 2011 | Filed under: High-net-worth investors, Private Equity, Real Estate, Retail Investing, Timely Research, Today's Post

According to the latest research, confidence in family office investing is back.


Alpha Hunter John Brynjolfsson: The Hidden Risks of Inflation

Jul 21st, 2011 | Filed under: Alpha Hunters, Alternative Mutual Funds, Commodities, Editor's Pick, Hedge Fund Industry Trends, Institutional Investing, Retail Investing, Today's Post

This is the first of a new series called "Alpha Hunters." The nimble qualities of alternative investments is part of what makes them essential to every investor's portfolio. They can move quickly to take advantage of market inefficiencies and go where other more traditional investment vehicles cannot. It is in the spirit of seeking the ever-moving alpha that we introduce this series, reaching out to experts in different strategies to see where they are finding alpha. We hope you find this series illuminating and please feel free to send suggestions for Alpha Hunters you'd like to read about. Kristin Fox Managing Editor


What the wealthy want — and it’s not “synergy”

Jul 13th, 2011 | Filed under: High-net-worth investors, Institutional Investing, Investment Management Fees, Retail Investing, Timely Research, Today's Post

Clients, according to a surprising new report, aren't too keen on alpha at the moment.


Yes, Pigs Do Fly!

May 17th, 2011 | Filed under: Alternative Mutual Funds, Retail Investing, Today's Post

Ten years ago, the prevailing thought was that pigs would fly before alternative investments became a mainstream staple for investment advisers. According to the latest research from Cerulli, it’s time for air traffic controllers to wake up because they’re going to have to integrate Dreamliner-sized porkers into flight patterns and guide them into safe landings […]


Capture this: A simple, but useful tool for describing hedge fund returns

Dec 6th, 2010 | Filed under: Retail Investing, Today's Post

The hedge fund industry has an occasional obsession with exotic risk metrics (VaR, Conditional VaR, Omega Ratio, higher moments, etc.).  These make a lot of sense if you have a few Ph.D.’s on staff (read: you’re a large institutional investor).  But what if you need to explain the non-market-tracking nature of a hedge fund to […]


Closet indexing continues to flourish in mutual fund land (and bring down average performance)

Nov 29th, 2010 | Filed under: Academic Research, Retail Investing, Today's Post

Mutual funds with a high "active share" are once again found to produce higher and more persistent returns - the two basic constituents of alpha. So why is closet indexing as popular as ever? And what does this portend for hedge funds?


SEC: When is a Family Office not a Family Office?

Oct 24th, 2010 | Filed under: Retail Investing, Today's Post

The Dodd-Frank Act requires hedge fund to register with the SEC. But it also nearly also forced America's 4,000 family offices to do the same. That got the SEC is wondering: What exactly is a family office anyway?


Homogenized hedge funds

Oct 13th, 2010 | Filed under: Retail Investing, Today's Post

Despite a lot of chatter and an assortment of industry surveys, some still say there hasn't yet been a "comprehensive overview of the differences and similarities of alternative UCITS funds and hedge funds" - until now...


Mutual fund study finds “first direct evidence of trade off between performance and marketing”

Aug 24th, 2010 | Filed under: Academic Research, Retail Investing, Today's Post

Mutual funds have learned that holding stock market "darlings" is bad for performance, but good for marketing. Thankfully for hedge funds, less transparency may have allowed them to avoid this trap.


Despite performance concerns, UCITS-compliant hedge funds still have plenty of fans

Aug 18th, 2010 | Filed under: Hedge Fund Industry Trends, Retail Investing, Today's Post

A recent survey finds that UCITS-compliant hedge funds are still drawing crowds - despite a few rough edges here and there.


Being short apparently has its benefits

May 10th, 2010 | Filed under: 130/30, Academic Research, Retail Investing, Today's Post

A new research paper suggests mutual funds that adopt hedge fund-like strategies were aided by their short positions - especially during the financial crisis.


Regulators take note: New research finds mutual fund managers do better, not worse, when they also manage “side-by-side” hedge funds

Mar 15th, 2010 | Filed under: Academic Research, Retail Investing, Today's Post

Past research has shown that when mutual fund companies offer hedge funds, mutual fund performance suffers. But a new study finds that when individual mutual fund managers also manage hedge funds, this actually helps the mutual fund performance.


Examining “Real Alpha” and “Exotic Beta” in mutual funds

Feb 1st, 2010 | Filed under: Academic Research, CAPM / Alpha Theory, Retail Investing, Today's Post

Usually the term "exotic beta" is associated with hedge funds. Finally, it's being applied to the largest pool of active management - mutual funds.


UCITS and NEWCITS and Hedge Funds, oh my…

Jan 19th, 2010 | Filed under: Hedge Fund Regulation, Retail Investing, Today's Post

The expected EU Directive in addition to generally more heightened demand for regulatory compliant alternative investments has already set in motion a wave of so-called UCITS- and NEWCITS-based funds. The question is whether they can truly live up to expectations, particularly with higher costs and lower returns?


A January Tradition: Investors’ love/hate relationship with hedge funds.

Jan 4th, 2010 | Filed under: Alternative Beta & Hedge Fund Replication, Retail Investing, Today's Post

As investors reflect on last year, they are apparently of two minds regarding hedge funds.


The grass is always greener… mutual fund managers’ walk on the wild side not so wild after all.

Dec 21st, 2009 | Filed under: Academic Research, Retail Investing, Today's Post

The allure of making big money and being your own boss was plenty to lure many a mutual fund manager to the hedge fund world. The reality, according to a new study published last month, is that there was almost no way to obtain the same level of compensation or better.