Are Managed-Futures Funds a Thing of the Past?

Are Managed-Futures Funds a Thing of the Past?
Managed-futures funds are in the midst of their largest drawdown in recent history. During the past three years through the end of April 2017, the 36 unique funds in the managed-futures Morningstar Category with histories at least that long had an average maximum drawdown of 13.4%. The lion’s share of capital in this space is managed by medium to long-term... Read More

Inside Harvard’s Radical Plan to Reverse a Decade of Poor Returns

Inside Harvard’s Radical Plan to Reverse a Decade of Poor Returns
From the Wall Street Journal: Harvard’s endowment is preparing to close its hallmark internal hedge funds and invest nearly all its money with outside money managers. The dramatic steps are just the beginning of an overhaul engineered by its new chief executive as he attempts to reverse a streak of lackluster returns. Early on Jan. 25, staffers at Harvard University’s endowment... Read More

Alternative Investment Allocations Should Increase In 2017 Across The Board Due To Market Uncertainty

Alternative Investment Allocations Should Increase In 2017 Across The Board Due To Market Uncertainty
Summary Playing the ‘Trump effect’ on markets is not easy. The “Trump Call” is not necessarily good for all investments. As Trump’s pro American and anti-Global trade policies take effect, markets will be volatile like never before. Alternative Investments will grow in popularity, and will help balance out the Trump Call on markets. With the Dow breaking 20,000 investors are... Read More

Summers Says Markets Underestimating Risks of Trump Presidency

Summers Says Markets Underestimating Risks of Trump Presidency
Former U.S. Treasury Secretary Lawrence Summers said investors are being far too sanguine about the risks associated with Donald Trump’s incoming administration. The Harvard professor, a Democrat who was Treasury chief under Bill Clinton, cited the possibility of protectionist measures by the U.S. as well as changes to foreign policy and domestic social policy as issues that are creating “extraordinary... Read More

The Golden Era of Hedge Funds Draws to a Close With Clients in Revolt

The Golden Era of Hedge Funds Draws to a Close With Clients in Revolt
Drinks flowed as hedge fund titan Robert Mercer, dressed as Mandrake the Magician, partied with Donald Trump, dressed as, well, Donald Trump. The occasion that early December evening was Mercer’s 2016 holiday costume party, an intimate gathering of 250 at his Long Island estate. This year’s theme: “Villains and Heroes.” In Trump, Mercer and his fellow hedge funders had much... Read More

Barclay CTA Index down 0.40 per cent in September

Barclay CTA Index down 0.40 per cent in September
The index is up 0.10 per cent year to date. “The US Fed, in spite of its hawkish tone, opted to hold rates steady which roiled financial markets,” says Sol Waksman (pictured), founder and president of BarclayHedge. Seven of Barclay’s eight CTA indices had losses in September. The Diversified Traders Index was down 0.83 per cent, Currency Traders lost 0.78... Read More

The Next 10 Years Will Be Ugly for Your 401(k)

The Next 10 Years Will Be Ugly for Your 401(k)
It doesn’t seem like much to ask for—a 5 percent return. But the odds of making even that on traditional investments in the next 10 years are slim, according to a new report from investment advisory firm Research Affiliates. The company looked at the default settings of 11 retirement calculators, robo-advisers, and surveys of institutional investors. Their average annualized long-term expected return? 6.2 percent. After 1.6... Read More

Uneasy Calm Grips Markets Suddenly Silent Before U.S. Vote

Uneasy Calm Grips Markets Suddenly Silent Before U.S. Vote
It’s happening again. Markets around the world, from stocks to metals and bonds, have slowed to a crawl, revisiting lows in volatility that have stood for two years. Muted moves just sent a cross-asset gauge of price swings in equities, rates, currency and commodities to the lowest since 2014. That everything should go quiet at once just before the U.S. election... Read More