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How investment analysts became data miners | Financial Times
Robin Wigglesworth 5 HOURS AGO
Distribution is increasingly focused on pulling readers in rather than pushing content out. Rather than emailing research and praying it gets opened, many banks have built up personalisable research portals. More content is now made public. The websites of most big investment banks now look more like those of think-tanks.....“The evolution of capital markets has put investment research departments in a tricky position,” ..... “The industry has changed dramatically in how it’s done and distributed. But what has not changed is the fundamental job: coming up with great ideas.”
alternative_data  asset_management  charts  data  data-driven  data_scientists  idea_generation  index_funds  investment_research  money_management  passive_investing  sell_side  technology  UBS  unbundling 
12 weeks ago by jerryking
The lesson for all investors arising from the lewd comments of a billionaire fund manager
OCTOBER 23, 2019 | The Globe and Mail | by IAN MCGUGAN

The money management industry that, in one way or another, is trying to seduce you.....The key to arriving at a mature relationship is seeing through the patter. Every fund company can trot out attractive, well-educated people with well-researched insights about the market. But look beyond the superficial charm.
More often than not, this will result in disappointment. The performance of most actively managed funds consistently lags passive market benchmarks, especially as you look at longer periods. In Canada, more than nine in every 10 funds underperformed their respective benchmarks over the 10 years to the end of 2018, according to S&P Dow Jones Indices.

In the United States, similar long-term trends hold true. Even the endowments of Ivy League universities, managed by teams of highly paid professionals, have failed to keep pace with a simple 60/40 portfolio of 60 per cent U.S. stocks and 40 per cent U.S. bonds over the past decade, according to research firm Markov Processes International. One simple lesson to take away from this is that indexing should be the default strategy for most small investors. Unless you have a strong view of where the market is going next, or a compelling reason to believe in a specific money manager, putting money into a low-cost, widely diversified index fund makes sense. No, it’s not going to work all the time – no investing strategy does – but it is hard to shrug off the long-term evidence of superior performance.

John Huber at Saber Capital Management, is often asked what his edge, or advantage, is. “Institutional investors seem especially interested in this question, and the edge that they are almost always looking for is some form of informational edge or insight that the rest of the market isn’t aware of,”......The problem is that such edges don’t exist any more. Oceans of financial and corporate information are available to any professional investor. Legions of professionals pore over that data, looking for reasons to buy or sell. Nobody knows more than anyone else – at least, not legally.......The only sustainable edge, Mr. Huber argues, is maintaining a different time horizon than the overall market.....
active_investing  commoditization_of_information  disappointment  index_funds  informational_advantages  investors  Ken_Fisher  lessons  money_management  passive_investing  slight_edge  time_horizons 
october 2019 by jerryking
Fidelity’s search for the technology of tomorrow
October 20, 2109 | Financial Times | by Robin Wigglesworth in Boston.

Buffeted by falling fees and rising costs, the asset manager is investing heavily in an effort to remain competitive...
Bolstered by 2.8 tn invested in their  mutual funds, Fidelity administers another $7.7tn on behalf of various clients, making it one of the biggest, broadest and most powerful financial groups in the world. ....The investment industry has come under intense pressure in recent years, buffeted by falling fees and rising costs.......Abigail Johnson is trying to reforge Fidelity for a new era, where technology permeates and reshapes every aspect of the company’s disparate businesses.......“Across all financial services, the trend is towards fee compression....Fidelity is dabbling in cryptocurrencies...  Ms Johnson is now spending about $3bn a year on tech to modernise every business line, from trading to retirement planning. “Financial services is becoming another winner-takes-all industry, so you need to spend a lot of money on tech to get the advantages of scale and play both offence and defence,”.... the question is whether an organisation as big, established and complex — and with a culture as ingrained as Fidelity’s — can evolve quickly enough to navigate the industry’s ferocious headwinds.......Fidelity is exploring whether virtual reality can make it more palatable to consumers via the Fidelity Center for Applied Technology. .....The technology centre is also where Fidelity’s initial bitcoin experiments took place, which last year evolved into a standalone company, Fidelity Digital Asset Services.....Ms Johnson has embraced the index funds once mocked by her father. Fidelity now has about $530bn in passive funds, making it one of the biggest providers.......Fidelity last year promoted Steve Neff, its chief technology officer, to lead its $2.8tn asset management division....... A lot of asset managers are spending a lot of money on computer scientists, and they don’t end up being used.” Upgrading Fidelity’s core tech infrastructure — which was largely developed in the 1980s — is time-consuming and expensive......Fidelity is using artificial intelligence to write more neutral job ads shorn of subconscious biases, to test the outcomes, and to better target job sites that might have more prospective hires from minorities.
Abigail_Johnson  artificial_intelligence  asset_management  blockchain  CEOs  Fidelity_Investments  financial_services  investment_management  legacy_tech  money_management  organizational_culture  the_great_game  virtual_reality  winner-take-all 
october 2019 by jerryking
What’s Left After a Family Business Is Sold?
Aug. 9, 2019 | The New York Times | By Paul Sullivan

Having a pile of money after a company is sold, in place of a company, with all of its stress and complications, would seem like a relief. But a company often holds families together by giving members a shared identity and conferring a status in the community established by previous generations.

Without the company, the family’s perception of itself and its purpose can change, and it is often something that members are not prepared for. Their focus was on running the business and then on the sale; little thought went into what comes next......“The key to doing it successfully is how you prepare yourself and how you prepare your family. It’s really a lifestyle choice.”

If families do not do it right, splitting apart is almost inevitable. “A shared business becomes very much a glue,” ....“When the business is sold, what we see in almost every situation is some family member splits away.” .....Most advisers say the sale of a family business should focus on the transition from operating a company to managing a portfolio of money, not on the money itself. Sometimes the magnitude of the sale becomes an issue for a family’s identity, particularly if the acquisition price becomes public......some families focus more on the money than the traits that made the business successful, and fail to grasp the difference between an operating business and financial capital. ....years before the sale, the family had been formulating a plan for its wealth that focused on family values but also held the members accountable. A family scorecard, for example, tracks their progress on 40 items that the family has deemed important, including working hard, investing wisely and the protecting its legacy.
Mr. Deary said the family used the scorecard to objectively answer the question: “Are we constantly trying to get a little bit better every day at what we do?”

As the wealth stretches out and families grow, those values can become a substitute for the company.
.....continuing education about a family’s values, particularly when the company was gone, allowed successive generations to understand where their wealth came from.

Those values often work best when they are broad — honesty, integrity, hard work — and not so specific that family members chafe. “The loose binds bind best,”

Family relationships can suffer when there are no shared values but strong financial connections, like a large trust or partnership that manages the wealth.
accountability  exits  family  family_business  family_office  family_scorecards  family_values  generations  generational_wealth  heirs  liquidity_events  money_management  purpose  relationships  Second_Acts  self-perception  unprepared  values  wealth_management 
august 2019 by jerryking
Mellody Hobson of Ariel Investments: ‘Capitalism Needs to Work for Everyone’
July 18, 2019 | The New York Times | By David Gelles.

Mellody Hobson was raised by a single mother and endured economic hardship as a child. The phone was shut off. The car was repossessed. Her family was evicted.

Today, Ms. Hobson is one of the most senior black women in finance. She serves on the boards of JPMorgan Chase and Starbucks, and this month was named co-chief executive of Ariel Investments, the largest minority-owned investment firm.......I was in the Woodrow Wilson School of international relations and public policy at Princeton. You have to apply to get in, and I did not originally get in. I lobbied really hard and called many people. I just would not take no for an answer.

I spent a lot of my years in the Woodrow Wilson School studying systems that really oppress people. I wrote my senior thesis on South Africa, and specifically on how children ultimately led to the end of apartheid because of their uprisings.........What do you tell people who are starting on their financial journey, wherever they might be?

I start off by explaining to them that it’s never too late, literally never. I also think the most important thing you can learn about money, and Warren Buffett talks about this, is compound interest. It’s the eighth wonder of the world. If you understand compound interest, you understand money working for or against you.

We talk about long-term patient investing, and that idea that slow and steady does win the race, that time can be your best friend when it comes to investing. That’s why we have a turtle as a logo at Ariel........ I believe in capitalism. It is the best system that has existed in the world. Show me a better one. I can’t find it. But I also believe that capitalism needs to work for everyone, and so I don’t begrudge those people who’ve done extraordinarily well in our society as long as it’s a fair fight.

It isn’t always a fair fight, though, and that’s what we need to fix. That could be anything from our tax bases and how that works, our tax rates, to other issues that occur in our society around fair opportunities for education.

I am a person of color who happens to be a woman as well, and I have firsthand dealt with inequality, despite having shown up with all of the credentials. I do not sit here believing that if you’ve just gone to a great school and this, that and the other, it’s all going to be fine. It just doesn’t work like that in our society. I think about those people who were like me and are like me. That goes into the boardrooms that I’m in. I also think about the people of color who are inside of those companies, making sure they get the same opportunity as those who are in the majority population....
African-Americans  alumni  Ariel  capitalism  CEOs  finance  inequality  investing  Mellody_Hobson  money_management  Princeton  women 
july 2019 by jerryking
How the 0.001% invest - Investing and the super-rich
Dec 15th 2018

Global finance is being transformed as billionaires get richer and cut out the middlemen by creating their own “family offices”, personal investment firms that roam global markets looking for opportunities. Largely unnoticed, family offices have become a force in investing, with up to $4trn of assets—more than hedge funds and equivalent to 6% of the value of the world’s stockmarkets. As they grow even bigger in an era of populism, family offices are destined to face uncomfortable questions about how they concentrate power and feed inequality......Every investment boom reflects the society that spawned it. ....The rise of family offices reflects soaring inequality......But since the financial crisis there has been a loss of faith in external money managers. Rich clients have taken a closer look at private banks’ high fees and murky incentives, and balked......Family offices’ weight in the financial system....looks likely to rise further. As it does, the objections to them will rise exponentially....that family offices have created inequality. They are a consequence, not its cause. Nonetheless, there are concerns—and one in particular that is worth worrying about: (1) The first is that family offices could endanger the stability of the financial system. (2) The second worry is that family offices could magnify the power of the wealthy over the economy.(3) that family offices might have privileged access to information, deals and tax schemes, allowing them to outperform ordinary investors.

The answer is vigilance and light. Most regulators, treasuries and tax authorities are beginners when it comes to dealing with family offices, but they need to ensure that rules on insider trading, the equal servicing of clients by dealers and parity of tax treatment are observed. And they should prod family offices with assets of over, say, $10bn to publish accounts detailing their workings. In a world that is suspicious of privilege, big family offices have an interest in boosting transparency. In return, they should be free to operate unmolested.
diversification  family_office  finance  financial_system  investing  investors  money_management  the_One_percent  upper_echelons  high_net_worth 
january 2019 by jerryking
Howard Marks, the ultimate bargain hunter
October 17, 2018 | Financial Times | Javier Espinoza.

Howard Marks : “I have a high degree of creativity,” he says. "In order to outdo others you have to think differently from others. If you don’t, how can you expect to have superior results?” His new book is Mastering the Market Cycle.

Mr Marks is the founder of Oaktree Capital Management. Based in Los Angeles, it is one of the world’s most prominent value investors. He makes money by finding situations where he can buy low, especially distressed assets, then sell high.

Today, market conditions mean Mr Marks faces as strong a challenge as ever: trying to sniff out bargains when valuations are steep, debt is cheap and competition fierce.

In 2015 Oaktree raised about $12bn for its distressed-debt fund. It was the second-largest amount in its history......The veteran financier regards delaying gratification as key to success. Like Warren Buffett, he believes waiting for the right investments is an important part of the process.

He often cites Hyman Minsky, the US economist famous for his work on bubbles and crashes....as Minsky would say, ‘there are always cycles’.”

“There are up-cycles with too much enthusiasm, too little discipline and too little risk aversion," he says. "And there are down-cycles when the economy does less well, corporations do less well, security prices fall and there is too much risk aversion, too much fear.”

“A quote said to have been uttered by Mark Twain is: ‘History does not repeat but it does rhyme’. The point is that the patterns of cycles do repeat and the details – the amplitude, the timing, the duration, the speed and the reasons – are different from cycle to cycle but the themes that underlie the causes of cycles are similar from one to the next.”

 
bargain_hunting  books  boom-to-bust  creativity  distressed_debt  economic_cycles  financiers  founders  Howard_Marks  investors  Mark_Twain  moguls  money_management  investment_research  Oaktree  patterns  pattern_recognition  quotes  think_differently  value_investing/investors 
october 2018 by jerryking
Taking the helm: why asset management bosses are getting the top jobs
September 1, 2018 | Financial Times | by Owen Walker.

The journey to the top of a global finance company is straightforward if recent hires are anything to go by: simply take over the asset management division, launch profitable products, open up new markets and wait for the chief executive role to become available.
asset_management  finance  financial_services  investment_management  leaders  money_management 
september 2018 by jerryking
An Activist Investment in Whole Foods Exposes Shifting Power on Wall St. - The New York Times
APRIL 25, 2017 | NYT | By ALEXANDRA STEVENSON.

Neuberger Berman has eschewed its nearly 80-year-old tactic of playing nice (i.e. buy and hold stocks, sit back, and hope for the best), turning to the bare-knuckled world of activist investors made famous by the likes of Carl C. Icahn and William A. Ackman. Last year, as Neuberger Berman’s roughly $200 million investment in Whole Foods Market languished, the firm quietly approached some hedge funds and urged them to agitate for change at the high-end grocer. Two weeks ago, Jana Partners took up the fight......Neuberger Berman’s behind-the-scenes campaign to shake up Whole Foods is the latest example of a dynamic that is upending relations between public companies and the big investors that own their stock.....a reflection of the shifting balance of power on Wall Street....Traditional money managers in search of market-beating returns are demanding a seat at the table, turning to activists for help and even employing some hedge fund tricks of their own. And activists, once the black sheep of the investment world, are now accepted as regular, if meddlesome, investors. ....[Activist investors], she added, “[are an] important ‘check and balance’ on management that has lost its way.”....Neuberger Berman executives prepared an inch-thick presentation--a thorough critique--the kind of document usually produced by activists.....failures in how Whole Foods handled its brand development, and to what it said were customer service deficiencies and a poor strategy for distribution......Relations between institutional investors and activists have evolved in recent years, and it is not unheard-of for big investors to support activists who have set their sights on a high-profile company. ..... be careful of what you wish for, Neuberger Berman discovered that utilizing board seats on an underperforming portfolio company can be "expensive and time-consuming.”.....it is less common for an institutional investor to share its work on a specific target with activists in the way Neuberger Berman did with Whole Foods....There is even a term for the interplay: “R.F.A.s” or “requests for activism.”....Institutional investors do not make investments predicated on an activist showing up.
Wall_Street  money_management  shareholder_activism  beat_the_market  hedge_funds  Whole_Foods  Jana_Partners  Neuberger_Berman  institutional_investors  checks_and_balances  Carl_Icahn  William_Ackman  boards_&_directors_&_governance 
april 2017 by jerryking
BlackRock Bets on Robots to Improve Its Stock Picking - WSJ
By SARAH KROUSE
Updated March 28, 2017

The firm is offering its Main Street customers lower-cost quantitative stock funds that rely on data and computer systems to make predictions, an investment option previously available only to large institutional investors. Some existing funds will merge, get new investment mandates or close. The changes are the most significant attempt yet to rejuvenate a unit that has long lagged behind rivals in performance......The author of the company’s new strategy is former Canada Pension Plan Investment Board Chief Executive Mark Wiseman, who was hired last year to turn around the stock-picking business. The effort is the first test for Mr. Wiseman, viewed by some company observers as a potential successor to Chief Executive Laurence Fink......Many other firms that specialize in handpicking stocks are also struggling with low returns and shifting investor tastes. Since the 2008 financial crisis, clients across the money-management industry have moved hundreds of billions of dollars to lower-cost funds that track indexes, known as passive investment funds, instead of aiming to beat the market.
BlackRock  stock_picking  automation  layoffs  asset_management  institutional_investors  ETFs  Mark_Wiseman  Laurence_Fink  CPPIB  robotics  quantitative  active_investing  passive_investing  shifting_tastes  money_management  beat_the_market 
march 2017 by jerryking
A Quiet Giant of Investing Weighs In on Trump
FEB. 6, 2017 | The New York Times | Andrew Ross Sorkin

In his letter, Mr. Klarman sets forth a countervailing view to the euphoria that has buoyed the stock market since Mr. Trump took office, describing “perilously high valuations.”

“Exuberant investors have focused on the potential benefits of stimulative tax cuts, while mostly ignoring the risks from America-first protectionism and the erection of new trade barriers,” he wrote.

“President Trump may be able to temporarily hold off the sweep of automation and globalization by cajoling companies to keep jobs at home, but bolstering inefficient and uncompetitive enterprises is likely to only temporarily stave off market forces,” he continued. “While they might be popular, the reason the U.S. long ago abandoned protectionist trade policies is because they not only don’t work, they actually leave society worse off.”

In particular, Mr. Klarman appears to believe that investors have become hypnotized by all the talk of pro-growth policies, without considering the full ramifications. He worries, for example, that Mr. Trump’s stimulus efforts “could prove quite inflationary, which would likely shock investors.”.....“The big picture for investors is this: Trump is high volatility, and investors generally abhor volatility and shun uncertainty,” he wrote. “Not only is Trump shockingly unpredictable, he’s apparently deliberately so; he says it’s part of his plan.”

While Mr. Klarman clearly is hoping for the best, he warned, “If things go wrong, we could find ourselves at the beginning of a lengthy decline in dollar hegemony, a rapid rise in interest rates and inflation, and global angst.”...In his recent letter, he explained for the first time his decision to say something publicly. “Despite my preference to stay out of the media,” he wrote, “I’ve taken the view that each of us can be bystanders, or we can be upstanders. I choose upstander.”....How Mr. Klarman wants investors to behave in the age of Trump remains an open question. But here’s a hint: At the top of his letter, he included three quotations. One was attributed to Thomas Jefferson: “In matters of style, swim with the current; in matters of principle, stand like a rock.”
Seth_Klarman  investors  hedge_funds  Donald_Trump  investing  ETFs  value_investing/investors  money_management  Andrew_Sorkin  countervailing  the_big_picture  nobystanders  Thomas_Jefferson  quotes  stylish  principles  uncompetitive 
february 2017 by jerryking
Pimco’s Strategy for Life After Gross: Go Beyond ‘Bonds and Burgers’ - WSJ
By JUSTIN BAER
Updated Nov. 7, 2016

The 53-year-old Frenchman, who joined Pimco in the past week, intends to push it deeper into hedge funds, real-estate assets and other alternative investments, people familiar with the matter said. With interest rates in much of the developed world near zero, those kinds of investments are in demand from pensions, endowments and other clients. They are also among the types of funds that command higher fees.

Investing in bonds, loans and other forms of debt securities will remain Pimco’s focus, but Mr. Roman will aim to build out capabilities in areas ranging from private credit to quantitative investments based on computer models, the people said.....Pimco, a subsidiary of German insurer Allianz SE, believes the gradual shift into alternatives is its best bet to ride out what many industry executives expect will be a brutal shakeout for asset managers. Tepid returns and the surging popularity of cheaper investment options, including exchange-traded funds, have pressured managers to lower fees.
Pimco  CEOs  alternative_investments  asset_management  capabilities  money_management  ETFs  shakeouts  interest_rates  developed_countries  low-interest  developing_countries 
november 2016 by jerryking
At BlackRock, a Wall Street Rock Star’s $5 Trillion Comeback - The New York Times
SEPT. 15, 2016 | NYT | By LANDON THOMAS Jr.

(1) Laurence Fink: “If you think you know everything about our business, you are kidding yourself,” he said. “The biggest question we have to answer is: ‘Are we developing the right leaders?’” “Are you,” he asked, “prepared to be one of those leaders?”

(2) BlackRock was thriving because of its focus on low-risk, low-cost funds and the all-seeing wonders of Aladdin. BlackRock sees the future of finance as being rules-based, data-driven, systematic investment styles such as exchange-traded funds, which track a variety of stock and bond indexes or adhere to a set of financial rules. Fink believes that his algorithmic driven style will, over time, grow faster than the costlier “active investing” model in which individuals, not algorithms, make stock, bond and asset allocation decisions.

Most money management firms highlight their investment returns first, and risk controls second. BlackRock has taken a reverse approach: It believes that risk analysis, such as gauging how a security will trade if interest rates go up or down, improves investment results.

(3) BlackRock, along with central banks, sovereign wealth funds — have become the new arbiters of "flow.“ It is not about the flow of securities anymore, it is about the flow of information and indications of interest.”

(4) Asset Liability and Debt and Derivatives Investment Network (Aladdin), is BlackRock's big data-mining, risk-mitigation platform/framework. Aladdin is a network of code, trades, chat, algorithms and predictive models that on any given day can highlight vulnerabilities and opportunities connected to the trillions that BlackRock firm tracks — including the portion which belongs to outside firms that pay BlackRock a fee to have access to the platform. Aladdin stress-tests how securities will respond to certain situations (e.g. a sudden rise in interest rates or what happens in the event of a political surprise, like Donald J. Trump being elected president.)

In San Francisco, a team of equity analysts deploys data analysis to study the language that CEOs use during an earnings call. Unusually bearish this quarter, compared with last? If so, maybe the stock is a sell. “We have more information than anyone,” Mr. Fink said.
systematic_approaches  ETFs  Wall_Street  BlackRock  Laurence_Fink  asset_management  traders  complacency  future  finance  Aladdin  risk-management  financiers  financial_services  central_banks  money_management  information_flows  volatility  economic_downturn  liquidity  bonds  platforms  frameworks  stress-tests  monitoring  CEOs  succession  risk-analysis  leadership  order_management_system  sovereign_wealth_funds  market_intelligence  intentionality  data_mining  collective_intelligence  risk-mitigation  rules-based  risks  asset_values  scaling  scenario-planning  databases 
september 2016 by jerryking
Steven A. Cohen’s Newest Bet: Do-It-Yourself Computer Traders - WSJ
By BRADLEY HOPE
July 27, 2016

Steven A. Cohen is betting as much as as $250 million that mechanical engineers and nuclear scientists can come up with market-beating mathematical models in their spare time. He's investing in a hedge fund launched by Boston investment firm Quantopian that provides money to do-it-yourself traders who come up with the best computerized investing methods, giving a share of any profits to the creators.

Mr. Cohen, chief executive officer of Point72 Asset Management LP, is also making an undisclosed investment in Quantopian itself through his family-office venture arm Point72 Ventures.

The billionaire’s new commitments are part of a broader push in the money- management world to embrace quantitative investing, which relies mainly on math-based models to bet on statistical relationships or patterns in stocks, bonds options, futures or currencies......Point72 Asset Management oversees the personal wealth of Mr. Cohen, his family and employees. It already has an internal team devoted to computer-driven trading strategies......Quantopian says it has 85,000 users signed up from 180 countries who have created more than 400,000 algorithms on the company’s free web-based platform. So far, the firm has only selected 10 of those to trade a few hundred thousand dollars on behalf of Quantopian. The platform is only for U.S. equities trading so far, but Quantopian plans to expand to other asset classes.
algorithms  quantitative  Wall_Street  Steven_Cohen  beat_the_market  hedge_funds  DIY  SAC_Capital  money_management  investing  Point72  asset_classes  family_office 
july 2016 by jerryking
Hedge Funds’ Idea Man - WSJ
By JULIET CHUNG
Jan. 4, 2016

The 54-year-old Brazilian immigrant is part of a larger ecosystem of consultants who sell their investment beliefs to hedge funds. The funds, hungry for returns or cheap hedges for their portfolios, get fresh ideas that comprise or inform their wagers. The consultants, in exchange, often expect to share in gains tied to their ideas, they and their clients said.....The ideas don’t always result in profits. ...Such arrangements make some veteran investors in hedge funds uneasy.

“If your manager’s renting a lot of ideas, you have to question the value-add they bring to the partnership,” said Chuck Bryceland of New York-based Bessemer Trust, which advises wealthy families and individuals on investments, including in hedge funds. “We want our people generating primary trade ideas and doing the primary work themselves.”
investment_advice  investment_research  ideas  Wall_Street  money_management  private_banking  hedge_funds  shareholder_activism  traders  exclusivity  idea_generation  value_added  financial_advisors  high_net_worth  Bessemer  Bessemer_Trust 
january 2016 by jerryking
Bill Gross Thinks the End Is Near - NYTimes.com
MAY 22, 2015

Reminiscences of a Stock Operator[edit]
The popular book Reminiscences of a Stock Operator, by Edwin Lefèvre, reflects on many of those lessons, and is in effect a financial memoir of Livermore (a pseudonym is used) starting with the bucket shop days and ending in the 1920s before the crash. The book has an avid following in the investment community, and is still in print. There is some speculation that this partnership between the two men was not their first collaboration. Since Lefèvre was a writer and journalist, it is thought that he was one of the friendly newspapermen that Livermore employed for both information and planted articles. Livermore himself wrote a less widely read book, "How to trade in stocks; the Livermore formula for combining time element and price". It was published in 1940, the same year he committed suicide.
Bill_Gross  bonds  PIMCO  investors  Second_Acts  money_management  books  institutional_investors  asset_management 
may 2015 by jerryking
Roger Ferguson of TIAA-CREF: Always Act as if You’re an Owner - NYTimes.com
NOV. 29, 2014 | NYT | Adam Bryant.
Is there a value on your list that is particularly important to you?

One is about personal accountability. One of the phrases I use is that if you owned this company, what would you do? And if your colleagues were owners, what would you want them to do?

What are your best interview questions?

What do you do with your free time? I’m listening for somebody who is a little more balanced. I’m always asking about team experiences, and about resilience and fortitude. How did you recover from setbacks? What did you do? I like to hear stories, and concrete examples.

What career and life advice do you give to graduating college students?

You have to be prepared to take some risks and maybe fail a little bit. Don’t make the same mistake over and over again, but don’t be afraid of making any mistakes. Because your career is like a climbing wall, not a ladder, and you don’t know where it’s going to end up. You have to be a continuous learner as you go up the wall.
money_management  pension_funds  setbacks  CEOs  African-Americans  McKinsey  Managing_Your_Career  advice  new_graduates  values  accountability  interviews  TIAA-CREF  Harvard  owners 
december 2014 by jerryking
This Man's Job: Make Bill Gates Richer - WSJ
By ANUPREETA DAS and CRAIG KARMIN CONNECT
Sept. 18, 2014

Surprisingly, Mr. Gates has few technology-related investments. As of June 30, he held a 3.6% stake in Microsoft, worth about $13.9 billion based on Thursday's closing stock price.

Mr. Gates makes his own tech and biotech investments, which aren't held by Cascade. He started digital-image company Corbis Corp. in 1989. Smaller investments include stakes in nuclear-reactor developer TerraPower LLC and meat-substitute maker Beyond Meat.

Mr. Gates is updated on all the other investments every other month. "At the end of the day, all decisions go through Michael," says Mike Jackson, chairman and CEO of AutoNation, who considers Mr. Larson a friend. Mr. Larson is a director of the auto retailer, and Cascade owns a 14% stake in AutoNation valued at about $841 million.

Mr. Gates decided to hire Mr. Larson after the Journal reported in 1993 that the entrepreneur's money manager at the time had previously been convicted of bank fraud. ....After an extensive screening process, a recruiter invited Mr. Larson to meet Mr. Gates. The money manager had worked for a mergers-and-acquisitions firm and run bond funds for Putnam Investments, now a subsidiary of Canadian insurer Great-West Lifeco , Inc., before striking out on his own.
billgates  high_net_worth  money_management  AutoNation  family_office  wealth_management  real_estate  investing  personal_relationships  networking 
september 2014 by jerryking
Wealth Managers Enlist Spy Tools to Map Portfolios - NYTimes.com
AUG. 3, 2014 | NYT | QUENTIN HARDY.

Karen White, Addepar’s president and chief operating officer, says a typical customer has investments at five to 15 banks, stockbrokers or other investment custodians.

Addepar charges based on how much data it is reviewing. Ms. White said Addepar’s service typically started at $50,000, but can go well over $1 million, depending on the money and investment variables involved.

And in much the way Palantir seeks to find common espionage themes, like social connections and bomb-making techniques, among its data sources,[jk: traffic_analysis] Mr. Lonsdale has sought to reduce financial information to a dozen discrete parts, like price changes and what percentage of something a person holds.

As a computer system learns the behavior of a certain asset, it begins to build a database of probable relationships, like what a bond market crisis might mean for European equities. “A lot of computer science, machine learning, can be applied to that,” Mr. Lonsdale said. “There are lessons from Palantir about how to do this.”
wealth_management  software  valuations  Quentin_Hardy  Addepar  Palantir  money_management  social_connectivity  machine_learning  correlations  portfolio_management  investment_custodians  tools 
august 2014 by jerryking
World’s largest asset manager rails against companies’ short-term thinking - The Globe and Mail
BOYD ERMAN
The Globe and Mail
Published Friday, May. 23 2014,

...Mr. Fink is worried that the great tide of economic growth is not rising as quickly as it could be because of persistent and pernicious short-term thinking. Everyone from Main Street to Wall Street to Pennsylvania Avenue is too focused on near-term waves to pay attention to what the overall water level is doing.

Blogs, polls, the story of the moment – that is what drives peoples’ thinking, he says. That means investment decisions and political moves are based on what’s happening now, and not long-term goals. The economy will bear the cost of this short-term obsession, and so will investors, Mr. Fink warns. He would like to see big changes in everything from accounting to corporate governance to government spending priorities, to reset the focus on more distant horizons....“We need executives in business to start focusing on what is right in the long run,” ...“Societies are having a hard time, politically and economically, adjusting to the immediacy of information: The 24/7 news cycle, blogs, the instantaneous information. It’s very hard. This is one of the things where we are developing a crisis.”...Mr. Fink is particularly frustrated with the lionization of activist investors in the media. Think Bill Ackman, Carl Icahn and others who push for changes that will lead to an immediate runup in the stock price,....Similarly, he is critical of accounting rules that push insurance companies to invest in shorter-term assets, rather than long-term projects such as infrastructure. “Everything is leading toward an underinvestment in infrastructure and an underinvestment in capital expenditures.”...In 1999, the company went public. It has grown incredibly fast ever since. It manages money for everyone from retail investors to pension plans. During the financial crisis, the U.S. Treasury hired BlackRock to run assets in the Troubled Asset Relief Program, and the Bank of Greece hired the company to help fix the country’s banking system. (Model for WaudWare?)
BlackRock  Laurence_Fink  asset_management  long-term  Boyd_Erman  Wall_Street  delayed_gratification  thinking  strategic_thinking  Communicating_&_Connecting  CEOs  money_management  shareholder_activism  immediacy  insurance  infrastructure  CAPEX  short-term  short-term_thinking  financial_pornography  pension_funds  underinvestments  noise  pay_attention 
may 2014 by jerryking
Incognito
October 2003 | Report on Business Magazine | by Doug Steiner.

"...He always seemed a step ahead, and he did it by working harder, thinking harder and trading harder—and in ways that the competition couldn't quite grasp."

Steiner's 10 rules for making serious money:

1. Economists say investing is a zero-sum game It isn't. Money moves to smart hands quickly, and lazy investors pay a price. Tiger Woods became the been golfer by practising a lot. How many prospectuses have you read in bed after the news?
2. Really good investors rarely crow. If there is $5 to be made from a trade, there will be loss than $2.50 after you've blabbed about how smart you are. There are traders who quietly take home $10 million a year. They live beside you in a modest house and drive a beat-up Nissan.
3. The best follow rules and they‘re patient. They may not invest for months. One great trader I know wanted to buy a house in a fancy neighbourhood. He spent more than a week in the registry office on his vacation, searching the title on each property in the neighbourhood to find what buyers paid and how much of that was mortgaged, going back 20 wars. He got a good deal. He does the same amount of homework investing.
4. Sharp traders never add to losing positions. Too many headaches.
5. Smart investors. when puzzled about when to sell. wonder if they should buy more. If they don’t think they should buy more,they sell.
6. The most information wins. If you like a company, phone some people who work there. Apply for a job. Try their products. Phone the shipping dock to find out if they're busy.
7. Get a Bloomberg terminal. Bloombergs have more information in them than you can use, but smart people use a lot of it.
8. Following really smart traders around the market is hard. Most have more money to invest in a position than the arbitrage or opportunity can handle. They leave few tracks.
9. Great investors an: like great athletes—they see opportunities that others don’t. Often you don't realize that what they've made the most money on is even fungible.
10. If you can't do it yourself, find someone who likes the foldouts in annual reports more than anything. Their management fees are usually worth it. And they usually don't have slick marketing brochures.
absorptive_capacity  arbitrage  Bay_Street  Bloomberg  dedication  Doug_Steiner  hard_work  hedge_funds  humility  idea_generation  investment_advice  investing  investors  money_management  obscurity  opportunities  overlooked_opportunities  patience  perception  primary_field_research  prospectuses  rules_of_the_game  self-discipline  sleuthing  slight_edge  smart_people  traders  training  unfair_advantages  zero-sum_games 
december 2013 by jerryking
China Investment Corp. revamps Canadian office - The Globe and Mail
BOYD ERMAN
China Investment Corp. revamps Canadian office Add to ...
Subscribers Only

The Globe and Mail

Published Wednesday, Dec. 18 2013
Boyd_Erman  China  China_rising  Bay_Street  money_management  institutional_investors  Felix_Chee  Canada  FDI  sovereign_wealth_funds  CIC 
december 2013 by jerryking
Marc Faber's Biggest Mistake - WSJ.com
Sept. 20, 2013 | WSJ |By Jamie Lee.


Faber also lent an old buddy $50,000 and never saw it again. "When you want to collect, people don't return emails, they don't call back," he said. Lesson learned: He now only makes family-friend loans that are backed by assets. He has done a lot better buying and keeping a host of memorabilia. Faber, who lives in Thailand and races around on motorbikes, began building a stash of Chairman Mao posters, badges and other collectibles in the '70s when Mao was close to death.

Once worth just a few cents each, some of the 330,000 badges he bought are now worth at least $150 apiece. But Faber is in no hurry to sell. "I don't need the money," he says. "It's an unusual collection, and I have a very large office."
collectors  collectibles  high_net_worth  money_management  Marc_Faber  personal_finance  Thailand  Swiss  financiers  mistakes  investors 
december 2013 by jerryking
Carlyle Group buys Toronto alternative asset manager - The Globe and Mail
Nov. 26 2013 | The Globe and Mail | Boyd Erman.
U.S. private equity behemoth Carlyle Group LP is buying a Toronto-based asset manager that specializes in picking hedge funds for huge institutional investors, yet another sign of Canada’s growing influence in the business of running alternative assets.

Carlyle said Tuesday that it has agreed to buy Diversified Global Asset Management Corp., an employee owned firm that oversees assets of $6.7-billion (U.S.), for about $103-million

DGAM’s specialty is advising large investors such as pension funds and sovereign wealth funds on how to use hedge fund strategies to manage risk and increase returns.

Canada, particularly Toronto, has a reputation as a top centre for money management in pension circles, with institutions such as Ontario Teachers’ Pension Plan and Canada Pension Plan Investment Board running complex strategies using alternative investments – essentially, in-house hedge funds. DGAM helps clients do the same thing by building custom portfolios of hedge funds and investments.
Carlyle_Group  private_equity  Toronto  investors  pension_funds  sovereign_wealth_funds  alternative_investments  Boyd_Erman  asset_management  OTPP  CPPIB  money_management  risk-management  institutional_investors 
november 2013 by jerryking
With Huge War Chests, Activist Investors Tackle Big Companies - NYTimes.com
August 30, 2013, 9:01 pm 14 Comments
With Huge War Chests, Activist Investors Tackle Big Companies
By MICHAEL J. DE LA MERCED and JULIE CRESWELL

In the 1980s, corporate raiders like T. Boone Pickens and Carl C. Icahn engaged in hostile takeovers or leveraged buyouts of companies, or sought to be bought out themselves at a profit. (Some of yesterday’s raiders, like Mr. Icahn, are today’s more public-relations-friendly “activists.”) In the 1990s, big pension funds like the powerful California Public Employees’ Retirement System took up the mantle, pressing for change not only in corporate governance but also on social issues like doing business in apartheid-era South Africa and protecting the environment.

Unlike the raiders, the current activists contends they are fighting for the interests of shareholders. To that end, the activists most often seek to appoint allies to board seats to help fight against what they see as complacent management and to bring more discipline to companies.
shareholder_activism  large_companies  hedge_funds  Microsoft  William_Ackman  institutional_investors  Apple  money_management  T.Boone_Pickens 
september 2013 by jerryking
Take one philanthropist plus one hedge fund - FT.com
June 2, 2013 | FT | By Emma Boyde.

the Pershing Square Foundation has announced a gift of £4.5m to Saïd Business School at Oxford university....The gift will fund up to five scholars a year on Saïd’s “1+1” programme, which allows students to study an MBA and an Oxford university specialist master’s degree in two years. The gift will be matched by a further £3m from the Oxford Graduate Scholarship Matched Fund.
philanthropy  Oxford  hedge_funds  business_schools  William_Ackman  money_management 
june 2013 by jerryking
Think markets raise capital? Think again.
March 25, 2013 | G&M | John Kay as told to Brian Milner

On the glut of information available to investors:

“We need to dispose of the idea that more information is better and eliminate informa...
economists  information_overload  investment_custodians  relevance  middlemen  dysfunction  money_management  asset_management  capital_markets  noise  incentives  conflicts_of_interest 
march 2013 by jerryking
globeadvisor.com: BILL ACKMAN
November 30, 2012
A year ago, Bill Ackman was just another American hedge fund billionaire. Then came his proxy battle against chronically underperforming CP Rail. The ensuing boardroom rout struck fear in the hearts of directors and executives across Canada, and earned Ackman our top nod for 2012 as the CEO who kicked business-as-usual squarely in the gut

JACQUIE McNISH
hedge_funds  profile  William_Ackman  Pershing_Square  money_management  shareholder_activism  boards_&_directors_&_governance  proxy-advisory 
december 2012 by jerryking
The obsessive life of bond guru Bill Gross - The Globe and Mail
JOANNA SLATER

NEWPORT BEACH, CALIF. — The Globe and Mail

Last updated Thursday, Aug. 23 2012
Bill_Gross  PIMCO  bonds  money_management 
november 2012 by jerryking
Investing Ideas That Stand Test of Time
April 25, 2000 | WSJ | Jonathan Clements

These days I find I am left with just three core investment ideas:
(1) Financial Success is a Sense of Control
If you ask folks about their financial goals, they will likely offer a laundry list of goods they want to buy or announce they want to accumulate as much money as possible. But in reality,
both goals are a prescription for unhappiness.
Sure it might be nice to purchase everything that catches your fancy. But nobody has unlimited wealth, so a focus on endless consumption inevitably results not in happiness, but in frustration and financial stress. Yeah, it would also be great to have heaps of money. But if all you want is an even bigger pile of cash, you will never be satisfied, because you will never reach your goal. So what should you
shoot for? A far more worthy goal, I believe, is eliminating the anxiety that comes with managing money. You want to reach that sweet spot where you feel your finances are under control, no matter what your standard of living and level of wealth.

(2)Investing is Simple
No doubts about it, there are lots of investments and investment strategies that are mighty complicated. But complexity usually means investors are running the risk of rotten results and Wall Street is getting the chance to charge fat fees. Investing is best when it is simple. In fact, if you want to accumulate a healthy nest egg, there
isn’t much to it. First, you have to save a goodly amount, preferably at least ten percent of your pre-tax annual income. Second, you should consider investing at least half of your portfolio in stocks, even if you are approaching retirement. Third, you should diversify broadly, owning a decent mix of large, small and foreign stocks. Fourth, you should hold down investment costs, including
brokerage commissions, annual fund expenses and taxes. Finally, you should give it time. A little humility also helps. Don’t waste effort — and risk havoc — by trying to pick the next hot stock, identify the next superstar fund manager or guess the market’s next move. Instead, your best bet is to buy and hold a few well-run mutual funds.

(3) We are the enemy
If successful investing is so simple, why do so many people mess up? It isn’t the markets that are the problem, it is the investors.
We make all sorts of mistakes. We fret about the performance of each investment that we own, so we don’t enjoy the benefits of diversification. We are often overly self-confident, which
prompts us to trade too much and bet too heavily on a single stock or market sector. We
extrapolate recent results, leading to excessive exuberance when stocks are rising and unjustified
pessimism when markets decline. We lack self-control, so we don’t save enough.

[All the points made immediately above are analogous to Jason Zweig's article on personal finance & investing. From Benjamin Graham --investing is often portrayed as a battle between you and the markets. Instead, “the investor’s chief problem — and even his worst enemy — is likely to be himself.”

Similarly, Nobel Laureate Daniel Kahneman wrote in his book Thinking, Fast and Slow. [that]evaluating yourself honestly is at least as important as evaluating your investments accurately. If you don’t force yourself to learn your limits as an investor, then it doesn’t matter how much you learn about the markets: Your emotions will be your undoing.... ]

If you are going to truly be a successful and happy investor, it isn’t enough simply to devise
strategies that allow you to meet your investment goals. Your strategies also must give you a
sense of financial control and fit with your risk tolerance, so that you stick with them through the
inevitable market turmoil.
That may mean keeping more of your money in bonds and money-market funds. It could mean
paying for an investment advisor. It might mean scaling back your financial goals and accepting
that the kids won’t be heading to Harvard and that you won’t be able to retire early.
These sorts of choices aren’t foolish. What’s foolish is settling on investment strategies without
considering whether you can see them through.
personal_finance  investing  howto  ideas  goal-setting  Nobel_Prizes  money_management  Jonathan_Clements  financial_literacy  biases  humility  mistakes  self-awareness  self-control  proclivities  overconfidence  financial_planning  delusions  self-delusions  emotions  human_frailties  Jason_Zweig  extrapolations  risk-tolerance  recency  unhappiness  human_errors  bear_markets  sense_of_control  superstars  Daniel_Kahneman 
may 2012 by jerryking
A stiff upper lip and a tight ship
August 13, 2011 | globeadvisor.com | by JACQUIE McNISH.
Morgan Meighen's eccentric chief portfolio manager on why restraint is
the new order at 10 Toronto Street...Mr. Smedley has never been one to
follow the pack. Although he manages a fund whose history and clientele
are steeped in the Canadian establishment, he has deliberately remained
an outsider.

His investment strategies are fed by an intensive daily regime of
personal research that begins with five newspapers every morning and
ends with corporate and financial report readings every night before
bed. He hunts like a reporter for early leads about emerging stock
winners and still takes copious notes in Pitman's shorthand, which he
learned as a 16-year-old reporter trainee in Britain.
wealth_management  high_net_worth  money_management  profile  Morgan_Meighen  Michael_Smedley  JCK  Canadian  Toronto  Bay_Street  restraint 
august 2011 by jerryking
First nations new focus for Canada’s banks
Jun. 15, 2011 The Globe and Mail GRANT ROBERTSON. Ottawa’s
plan to pay out billions of dollars in land claim settlements to first
nations bands over the next several years, along with changes to the
mortgage market on some reserves, is opening up a lucrative and growing
business for the country’s banking sector. The Canada First Nation Joint
Action Plan, announced last week in Ottawa, extended the government’s
plan to settle outstanding land claims, paying out roughly $1-billion a
year to bands that are owed money. The reserves that are in line to
receive those payouts must line up a bank to manage that injection of
funds. This has spawned a burgeoning niche in Canadian banking, as
financial institutions compete for the right to manage that money
through their wealth management and trust divisions. Bank of Montreal,
Royal Bank of Canada, Toronto-Dominion Bank and Peace Hills Trust are
among the financial institutions now focusing on aboriginal banking as a
fast-emerging market.
banking  land_claim_settlements  BMO  RBC  action_plans  TD_Bank  financial_institutions  money_management  wealth_management  aboriginals  Altruvest 
june 2011 by jerryking
What Educators Are Learning From Money Managers
June 7, 2010 | Forbes Magazine | Daniel Fisher. "Away from the
angriest national debates, however, a quiet revolution in American
public education is occurring at organizations around the country like
Achievement First (see sidebar stories listed below). Most were launched
by idealistic liberals with dreams of social equality. But with annual
budgets exceeding $50 million, sophisticated computer systems and
hundreds of employees, they are starting to resemble
corporations--tracking and responding to minute changes and putting
resources to efficient and innovative uses. The question is whether
these strategies can be writ large, like Wal-Mart, to work in thousands
of schools with millions of students nationwide. There are plenty of
doubters."
school_districts  schools  data_driven  education  teachers  money_management 
may 2010 by jerryking
Follow successful investment managers, you'll learn from them
August 13, 2005 | Globe & Mail ROB pg B7 | by Ira Gluskin.
"The first question that you should ask is why does anyone in the
investment industry want to be interviewed or quoted?...A tip to
facilitate your newspaper reading productivity... The most important
articles to read are by, or about successful investment managers.
Articles by or about investment executives and corporate executives come
next. Research analysts should be read afterwards. The last experts to
rely on are economists, with one notable exception. Jeffrey Rubin of
CIBC.".......Avoid all the articles interviewing Mr. and Mrs. Average Canadian who want to share their investment expertise with us. Certainly there are many astute investors out there in the real world, but the real world is full of experts on sports, movies and politics as well. However, the editors of these sections do not choose to air these amateur views like they do in the financial section. I repeat that I recognize that there are brilliant investors out there, but they don't have the discipline of achieving reported performance numbers like myself. This lack of discipline prevents the reader from knowing whether they are dealing with lucky or smart people.
Ira_Gluskin  investment_advice  in_the_real_world  Jeffrey_Rubin  Gluskin_Sheff  money_management  wealth_management  high_net_worth  Toronto  Bay_Street  reading  productivity  howto  economists  investment_research  equity_research  research_analysts  worthiness  discernment  smart_people  luck  investors  self-discipline 
october 2009 by jerryking
When you're drowning in knowledge, it's experience that counts
Aug. 20, 2009 | Globe & Mail | by Dan Richards. The key
to success today is no longer knowledge and information alone; more than
ever it's the discipline, experience, perspective and insight to know
what to do with that information, something that only comes from the
battle scars earned working through multiple market cycles....The bottom line is simple: If knowledge alone drives success, then years of experience may be less critical than intellect and analytical prowess. But in a time of market uncertainty such as we see today, intellect and knowledge alone aren't enough. Financial advisers and money managers also need the acumen that only years of hard-won experience can bring.
business_acumen  commoditization_of_information  Dan_Richards  discernment  experience  financial_advisors  information_overload  insights  investment_advice  money_management  pattern_recognition  uncertainty  wisdom  self-discipline  judgment  perspectives 
august 2009 by jerryking
Word to the young: History may be your greatest guide
Toronto, Ont.: Aug 5, 2006.| The Globe and Mail. pg. B.10| Ira
Gluskin.

The purpose of this reading is twofold. The first is to satisfy
curiosity about the world that we live in. The second purpose is to be
well informed should that be helpful to the investment process. How much
financial history young people are supposed to know? Historical
knowledge and communications skills may become more valuable one day.
reading  financial_history  Ira_Gluskin  high_net_worth  books  Gluskin_Sheff  money_management  wealth_management  Toronto  Bay_Street  history  curiosity  young_people 
march 2009 by jerryking
Parting Shot: What I Learned From Writing 1,008 Columns - WSJ.com
April 9, 2008 parting words from the WSJ's Jonathan Clements in
which he distills the lessons learned over the years since his "Getting
Going" column began in 1994.
tips  money  money_management  lessons_learned  life_skills  personal_finance  farewells  Jonathan_Clements 
january 2009 by jerryking

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