Therefore, when it comes to deciding which, if any, CTA to add to a portfolio, there is no single question to ask. There is no simple approach, and it usually involves a combination of factors. Some investors focus entirely on the quantitative aspects of the CTA and these cannot be ignored.
Managed Futures – Riding the Wave – (AIMA)
AIMA did acknowledge that dedicating 40%, or even 20%, of a portfolio to managed futures is unrealistic, but the group wanted to show the impact from the viewpoint of modern portfolio theory, noting that even a small allocation would offer improved risk and return benefits.
CTAs can still have a seat at the table – (Pensions & Investments)
The firm has gone from viewing AI with skepticism to making it a cornerstone strategy. Among the company’s biggest expenditures now is computer equipment—along with hiring engineers to keep up with the technological change and the ensuing growth. AI is now not only out of the nuclear bunker but on a pedestal. “It went from a total isolation to ‘OK, you are allowed to sit at dinner with the rest of us, but don’t talk’ to the point where it’s become a part of the family,” Ellis says.
The Massive Hedge Fund Betting on AI – (Bloomberg)
The best option would be to fix the existing IPO. Lockup periods on shareholders could easily be smarter. Investment banks could bring a variant of the auction process into their price-setting to reduce the first-day pop. And the company coming to market could get more say over the type of investor who gets stock, reducing the banks’ ability to help their clients.
The Modern IPO is Useless. Let’s Reinvent It – (Wall Street Journal)
“The consensus is you cannot time a managed futures investment,” Dolfin told ValueWalk. He then proceeded to pull out empirical data dating back to 1980 that he says proves the consensus wrong.
Hot Debate: Steben Says A Managed Futures Investment Can Be Timed – (ValueWalk)
Every cognitive bias is there for a reason — primarily to save our brains time or energy. If you look at them by the problem they’re trying to solve, it becomes a lot easier to understand why they exist, how they’re useful, and the trade-offs (and resulting mental errors) that they introduce.
Cognitive bias cheat sheet – (Better Humans)
The top 1% saw their share of income rise to a new high of 23.8% from 20.3% in 2013. The income shares of the bottom 90% fell to 49.7% in 2016.
The top 1% of Americans now control 38% of the wealth – (CNBC)