Alternative Asset Management
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J.P. Morgan Foresees Moderate Growth, No Recession In 2020
Read the rest of this entry »Predicting 2020 "will be a year of moderate global growth and contained inflation, with risks skewed to the downside," J.P. Morgan Asset Management last week released its second annual Global Alternatives Outlook.
The report offers a look across key alternative asset classes over the next year to 18-months, with a focus on hedge funds, private credit, real estate and private equity.
The broad outlook, according to J.P. Morgan, is ...
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More Women In Assets But Senior Levels Lag
Read the rest of this entry »Women in alternative assets are rare. Not quite 1 in 5 employees at all levels are women. At the senior leadership level, the percentage across all sectors falls to just under 12%, with real estate having the lowest share of female executives at 8.5%.
Preqin recently released a preview of its forthcoming report, Women in Alternative Assets 2020, which, the research firm said, "does show some encouraging trends in the ...
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Banking's Parties Just Aren't So Much Fun Anymore
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End of the year bank parties just aren't what they used to.
From flowing Dom Perignon bashes that lasted well into the night, today's affairs end by 10, bemoans an anonymous senior banker. "Just like the share prices of most European banks, Christmas parties have fallen off a cliff," says the pseudonymous Peter Flower.
"What used to be extremely fun events, that brought people closer to their clients and managers ...
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The Myth of the Million Dollar Data Scientists
Read the rest of this entry »By any measure, data scientists earn a good living. Glassdoor puts their average pay at $120,495. The average bonus or additional comp averages $11,742.
But at hedge funds, those numbers don't even come close to what exceptionally skilled data scientists can earn.
Speaking at a conference last spring, an industry recruiting specialist said it's possible for a PhD data professional to earn a million dollar payday. Few do, he admitted. ...
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When Hiring Quants and Analysts, Leave the Resume For Last
Read the rest of this entry »Alternative asset managers are judged on their performance. So why don't they do the same when it comes to judging job candidates?
That's the advice Sham Mustafa, co-founder of quantitative assessment specialist Correlation One, gave to a London quant conference last week. "Don’t look at the resume, look at the performance,” eFinancialCareers quoted him as telling his audience.
That might seem like a no-brainer, but Mustafa told the attendees that ...
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Investor Pressure Is Forcing Down Management Fees
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Investor concerns and the lackluster performance of some types of asset funds have have been putting downward pressure on management fees for several years. Now, an analysis from investment consulting firm bfinance shows just how far fees have declined.
Investment Management Fees: Is Competition Working?, issued last week, says fees for funds of hedge funds, are down 28% in just three years, and now average .58%. That asset class ...
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Will Machines Take Over Wall Street?
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"Machines are taking control of investing - not just the humdrum buying and selling of securities, but also the commanding heights of monitoring the economy and allocating capital."
That's how The Economist begins it's cover story on the increasingly important role of artificial intelligence in the world's financial markets. It's a sober examination of how machines have evolved from acting on orders set by traders to analyzing more social and ...
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Analysis Finds AI Funds Get Better Returns at Lower Risk
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Preqin has some bad news for the humans who manage hedge funds: AI-managed funds earned a higher return at lower risk than the overall industry.
The algorithm managed funds earned a three year return of 26.98%. The Preqin All-Strategies Hedge Fund benchmark (all hedge funds) returned 23.87%. Besides the three percentage point difference, Preqin reported that the AI funds had lower volatility and a higher Sharpe ratio. (The higher a ...
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Robo-Advisors Have Yet to Break Even
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Robo-advisors, one of fintech's flashier trends, have yet to pay their way. Even at the typical 0.25% fee, most have yet to attract enough invested dollars to break even, let alone turn a profit.
A detailed discussion on International Banker of the robo-advisor phenomenon leans on an HSBC report on the wealth management industry, which included an analysis of the emerging sector that concluded almost none of the online firms ...
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VC Funds Expected to Set Second Consecutive Record
Read the rest of this entry »Venture capital funds had a strong first half of the year with $66 billion invested in some 4,900 deals. At the current pace, 2019 may turn out to be the second consecutive year VC investment has topped $100 billion.
Meanwhile, exits are setting a record. Propelled by Uber's IPO, the Q2 exits total of $138.38 -- more than double Q1's $50.2 billion -- pushed the first six months exit total ...
