The liquidity of an asset is the extent to which it can be bought or sold without affecting its price. In extreme market conditions especially, investors trying to sell illiquid assets may be forced to accept drastically reduced prices to find a buyer quickly (or at all). A lesson learned… Read the article
Category: Investment Industry
No political consensus lasts forever – at least not without reform. The pre-eminence of the liberal economic order prior to the global financial crisis might have tempted us to think that this time would be different.
Instead of political convergence, however, we have witnessed growing fragmentation across… Read the article
It is always worrying to hear investors ask how managers performed over very short time horizons. It seems very unlikely that a couple of weeks’ performance can tell you much about a fund manager’s skill as opposed to luck.
But short time frames might be able to… Read the article
Much has been made recently of the struggles faced by ‘macro’ managers in recent years, particularly among hedge funds. The last five years have seen relatively low returns to these strategies both in an absolute sense, but most notably relative to global equity markets.
The perceptions of poor performance have… Read the article
A lot of time collectively is spent monitoring and analysing data on investment fund flows. Is this time well spent?
The assumptions typically made are that fund flows data indicate which assets are ‘popular’ and in the absence of significant change, continued flows might suggest underlying momentum for an asset… Read the article
There are a couple of (related) subconscious assumptions that investors seem to hold today. The first is that we are in a low return world, and the second is that investing for income is harder today.
Both of these beliefs are ultimately driven by the very low levels of government… Read the article
The past week has been rich in press conferences, speeches and comments from world leaders and entrepreneurs. Despite some inconsistencies, surprises, and doubts, they all seem to agree on an improvement in the underlying economy, be it already in place or about to come.
In the US, better economic conditions,… Read the article
In 2015, Tony discussed the growing popularity of ‘Diversified Growth Funds’ (DGFs). DGFs typically seek to generate returns comparable to the stock market but with lower volatility. They have been successful at raising assets in a world where many institutional investors have been ‘de-risking’ and the… Read the article
There were a couple of pieces written in the media in 2016 suggesting that the year represented a tipping point in the shift from active to passive management, both in equities and fixed income markets. Whether or not this is true, when it comes… Read the article
Could it be that professional investors are chasing year end equity returns to flatter calendar year performance? And does this set us up for a weaker January as those same investors unwind positions they might not really believe in?
As equity markets have continued to rally there has been a… Read the article