Industry Voices

  1. Under the hood of hedge fund leverage

    trueOne of the key differentiators between hedge funds and other investment vehicles is the use of leverage. Leverage can be your best friend one day, and your worst enemy the next. Everyone knows that leverage will accentuate both gains and losses. However, less is known about how hedge funds actually ...

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  2. Master limited partnerships positioned to benefit from rising U.S. energy production

    trueThere is no denying master limited partnerships have had a good run in recent years. A unique asset class in the investment landscape, MLPs are defined by the legal requirement that they derive most of their cash flows from real estate, natural resources and commodities. One of the key advantages ...

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  3. Hedge fund replication: Is it appropriate for you?

    trueHedge fund replication products are a classic example of financial innovation. However, while replication products are a “net-net” positive innovation, they are neither simple to understand, homogenous in form, nor appropriate in every situation.

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  4. The efficient market hypothesis is our North Star

    trueCliff Asness, writing in Industry Voices, calls the efficient market hypothesis the investment management industry's guiding light.

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  5. Who needs a boom anyway?

    trueHermes SourceCap CEO Andrew Parry says booms tend to be followed by busts, so a nervous recovery based on improved corporate competitiveness and gradually improving investment is preferable to liquidity-led euphoria.

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  6. One manager's decision to convert a CIT into a mutual fund

    trueIn June 2008, SKBA Capital Management LLC launched a daily valued collective investment trust in its flagship ValuePlus equity strategy, which focuses on dividend-paying companies. The initial capital for the fund came from employee contributions.

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  7. Hope is not a strategy

    trueIt is surprising the degree to which many asset managers still underestimate what it takes to successfully market investment management services. Although everybody says they want to grow their business, the manner in which they approach and execute their sales and marketing efforts suggests ...

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  8. Beyond the gateway: Investment considerations for secondary cities

    trueIn recent years, direct investment in commercial real estate has been heavily concentrated in a few cities, but as foreign investors push up prices in these “gateway” cities, many veteran investors looked to secondary cities, as well as some smaller markets with good growth prospects.

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  9. Outlook for Treasury inflation-protected securities

    trueWhile this might seem like a non-intuitive point, after exploring the mechanics of TIPS, it should become clear that the asset class may experience headwinds.

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  10. Farmland investing in California: Withstanding a historic drought

    trueCalifornia is the nation's most productive agricultural state and is home to a $35 billion agricultural industry. It is also bone dry.

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  11. If your CEO asks about retirement readiness, will you have an answer?

    trueImagine your CEO is upset because he was just told that large numbers of older workers are delaying their retirements. He wants to know not only why this is occurring, but also why he and the chief financial officer weren't made aware that this was a likely possibility a few years earlier.

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  12. Mapping a changed fixed-income world

    trueChanges in the market have resulted in a greater continuum in terms of credit quality across the fixed-income universe and increased correlations between historically disparate asset classes.

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  13. Attention defined contribution participants: Beware of being the patsy!

    trueIt's a truism that poker — and financial markets — can be unkind to those unaware of the caliber of their opponents. Some sponsors of defined contribution plans, however, may be forgetting this in their otherwise admirable quest to lower costs with indexed investments.

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  14. Index Wars: The effect of increased competition on ETF providers, and institutional investors

    trueAs long as investors continually look for new and better ways to invest in, track or beat the market, index providers will continually be challenged to find ways to create better, more robust benchmarks to meet customer expectations.

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