June 14, 2016

Smart Money Insights: Weekly Brief June 14

10 Days Until Brexit? In an earlier post, we explored the potential fallout of a Brexit and the shifting fortunes of the Leave camp. A new poll gives Leave a 19 point advantage (52% vs 33%), while UK bookmakers are pricing in a somewhat lower chance of Brexit—approximately 40%. Bookmakers are continuously revising upwards their estimates of a Brexit and bookmaker William Hill indicated in an interview with Business Insider that Leave could overtake Remain in betting by the weekend. Meanwhile, a new report from Morgan Stanley forecasts a -15% drop in European equities and a -7.8% drop in the …

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Why a ‘Replication’ Strategy Trumps Liquid Alt Funds

Catch Andrew Beer interviewed on TheStreet. The liquid alternatives movement is trying to bring hedge fund strategies to ordinary investors. Unfortunately, performance has been subpar for the majority of liquid alternative funds and the fees are still relatively high compared to the average mutual fund. Andrew Beer, managing partner at Beachhead Capital Management, said a ‘replication strategy’ is the better option. ‘The idea is simple: figure out how hedge funds are invested, and copy it,’ said Beer, who also refers to his replication strategy as ‘Dynamic Beta’. Beer said even for sophisticated investors, it is difficult to figure out exactly …

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