July 2016

Smart Money Insights: Weekly Brief July 19

A Tenuous Recovery in European Markets Markets have rebounded following the momentous Brexit vote in the U.K. on June 23rd. The S&P 500 and the MSCI EAFE have both rallied over 8% since June 28th. Despite the post-Brexit rebound, the Wall Street Journal has pointed out that investors are fleeing European equity funds. Approximately $9.7BN has been redeemed in the two weeks following the Brexit vote, which marked the 22nd consecutive week of outflows from European equities and approximately $54BN has been redeemed year-to-date according to the Journal. All of this suggests that investors have come to view European economic …

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Low-Fee ETFs Can Be a Form of Alpha, Says Beachhead Capital’s Andrew Beer

In a recent interview with Bloomberg, Andrew Beer shares his view on hedge fund replication and describes in detail how the Equity Hedge Dynamic Beta strategy utilizes a handful of ETFs to give investors exposure to the 40 largest equity hedge fund managers, without the standard 2-and-20 fee structure. Click here to read the full article

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The Hypocrisy That’s Turned Hedge Fund Activists Into Billionaires

By Andrew Beer, guest contributor to Forbes.com Hedge fund activists have attracted hundreds of billions of dollars in investor capital over the past decade with a strategy to bring accountability into corporate boardrooms. Prominent funds have taken on corporate icons ranging from Microsoft and DuPont to eBay and PepsiCo, running campaigns to refocus operations and increase returns of capital to shareholders, or spin and sell businesses entirely. But who is holding the activists accountable? Missing from the debate on hedge fund activists is a discussion how funds treat their own investors. Click here to continue reading the article

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Smart Money Insights: Weekly Brief July 6

Italy: A New European Crisis Brewing? The fallout from the Brexit referendum has left the British political establishment in disarray, with no clear successor for David Cameron in sight. Businesses are postponing investment and some are weighing a relocation to the Continent. Meanwhile, all is not well for Britain’s neighbors to the south; leaders in Brussels are struggling to find a coherent strategy for dealing with the migrant crisis as prosperous Core countries goad struggling peripheral countries to share more of the burden for housing the migrants. More alarming, however, is the nascent banking crisis emerging in Italy. The Wall …

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