Hedge Funds

Smart Money Insights: Weekly Brief June 7

Pay to Lend Fitch Ratings recently highlighted that global negative yielding sovereign debt topped $10.4 trillion in May, an increase of $500 million from the prior month. Much of the increase was driven by yield declines in additional maturities of Japanese and Italian sovereign bonds. In Japan, quantitative easing and negative interest rates instituted by the Bank of Japan have contributed to negative sovereign yields. In Europe, weak inflation and manufacturing data along with an expansion of the ECB’s economic stimulus program have contributed to the negative yields. 17 Days until Brexit? Last week, we explored possible explanations for a …

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Smart Money Insights: Weekly Brief May 31

Welcome back after the holiday weekend. Last week we revisited some recent dire predictions that have faded from the headlines. This week, we’ll focus on a single issue — value vs growth stocks – since this is having a big impact on active investors of all stripes. The catalyst is that value-focused ETFs have had inflows of $5.5 billion this year while growth ETFs have seen outflows – causing some to forecast a reversal of the growth-chasing trend over the past several years. Key points follow below. Value Has Performed Terribly vs. Growth There’s a good article today in Bloomberg …

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Smart Money Insights: Weekly Brief May 17

We’re picking up again after a lull due to intensive work on a webinar and several research topics.  First, despite a flat S&P year-to-date, active managers are having one of the worst years on record.  Second, we may be at the tipping point for hedge fund fees – long overdue and a validation of what we’ve been shouting from the rooftops for years.  Third, the equity market recovery seems to be driven by short covering – not a stable foundation.  We are working on several research projects, which will show up as dedicated blog posts.  If there are any specific …

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Smart Money Insights: Weekly Brief Mar 21

If March ended today, the first quarter of 2016 would look like a “yawner”: the S&P 500 index rose modestly, emerging markets and commodities bounced nicely after a terrible 2015, some of last year’s gains on the dollar reversed (which eases pressure on corporate profits), and bonds performed nicely in a world of slowing economic growth and aggressive monetary easing. Completely absent from this narrative is the violent churn beneath the surface and the damage to many investment portfolios. In that context, it’s worth revisiting some of the drivers of market volatility this year. Is the US heading into recession? …

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Why Apple is NOT a Top Ten Holding of 93% of Hedge Funds

To infinity and beyond Buzz Lightyear   A recent report by Goldman Sachs describes Apple (AAPL) as a “Very Important Position” (top ten holding) for 47 hedge funds. Overlooked is that fact that it’s not a significant position for 93% of the hedge funds in the survey and represents only a 1-2% overall allocation, less than its weighting in the S&P 500. Further, three years ago it was in fact a top ten holding of 109 hedge funds, so more than half decided to cut back. What happened? Perhaps the real question is, “how cheap is AAPL today?” Carl Icahn, …

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Smart Money Insights: Weekly Brief Feb 29

Here’s the second weekly brief. First of all, thank you to Harvest Exchange for welcoming us into the community; our How Smart is Smart Beta? post was very well received. As a follow up to the topics from last week, recession fears have abated somewhat (hedge funds have been right so far…) and the news flow about China has been a little calmer (brief update below). The big story last week was about Brexit – whether the UK will vote in a referendum in June to separate from the EU.   If you didn’t catch it, you might enjoy our post …

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