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After the financial crisis and the accompanying falls in the stock markets, many commentators have questioned the appropriateness of tracking cap-weighted indices.
These indices are particularly inefficient and, through their momentum properties, favour the emergence of speculative bubbles.
Research from the Edhec-Risk Institute shows that financial theory, despite widely-held views to the contrary, does not support investment in these types of indices. It is therefore urgent for investors to seek alternatives to these indices which are justified by neither fact nor theory.
The research shows that a cap-weighted stock market index is not the market portfolio of financial theory; the
Aladdin Capital has appointed Keith Innes as its global head of sales.
Innes joins Aladdin with over 25 years of financial industry experience in institutional sales at Lehman Brothers, Banque Indosuez (later bought by Credit Agricole) and most recently at Forum Partners.
Innes will be based in Aladdin’s Stamford US headquarters and hold chief responsibility for oversight of Aladdin’s global distribution capabilities.
Neal Neilinger, chief investment officer at Aladdin, says: “As Aladdin continues to grow both its investment banking and investment management businesses, it is critical to our success that we have someone in place with a strong management background
While interest has been returning to the hedge fund space, investors today are seeking more liquid, transparent and cost effective solutions for gaining access to the asset class, according to a research paper by Credit Suisse.
The whitepaper, Portfolio Idea: Enhancing Liquidity in Alternative Portfolios, examines liquid alternative beta strategies and their impact on portfolio liquidity.
Jordan Drachman, head of research for alternative beta strategies in the asset management division at Credit Suisse, says: "The paper explores a challenge that many investors face in their alternative portfolios: how to increase portfolio liquidity without sacrificing potential returns, especially in a post-crisis,
Deutsche Börse has launched an updated version of Xetra which aims to improve the efficiency of the pan-European trading system.
“Deutsche Börse has improved the market quality of Xetra yet again with Release 11.0. The functionality and speed of our trading system and the provision of liquidity will be improved,” says Rainer Riess, managing director of Xetra market development at Deutsche Börse.
One of the most important technical improvements is the expansion of the Enhanced Transaction Solution interface. Order information is now sent to participants in real time via this interface.
The new execution restriction “book or cancel” facilitates targeted
Charlemagne Capital, the emerging markets group, has launched the Magna Emerging Markets Dividend Fund.
The fund aims to invest in emerging market stocks with a sustainable high dividend yield plus strong earnings growth.
The lead portfolio advisers see significant opportunities across all the regions, sectors and markets and will employ Charlemagne Capital’s research driven, bottom up stock selection investment process.
The portfolio will focus on around 30 to 40 holdings with the underlying assets expected to be listed across a range of stock markets, including London, AIM and local emerging markets with a projected annual dividend yield of six
Guernsey’s position as a leading fund domicile has been further endorsed by a series of new administrators and managers establishing a presence in the island.
J.P. Morgan and BNY Mellon have both added their names to the roster of fund administrators in Guernsey.
BlueCrest Capital Management – one of Europe’s largest hedge fund managers – and stockbroker Shore Capital relocated their headquarters from London to the island during the first half of the year.
Peter Niven, chief executive of Guernsey Finance, the promotional agency for the island’s finance industry, says: “We have seen several new entrants to the Guernsey market
HedgeOp Compliance has introduced two new tiers of its ADVassist adviser registration service, providing enhanced customisation for advisers registering as investment advisers with the Securities and Exchange Commission.
The new suite of services, ADVassist Basic and ADVassist Advanced, enable private fund advisers to fulfill registration and compliance requirements cost-effectively and appropriate to a fund’s size and infrastructure.
"With financial reform a reality, private fund advisors should be preparing for registration now," says William Mulligan, managing partner and chief executive of HedgeOp Compliance. "Now is the time for these firms to implement a formal testing and review of their compliance procedures.
100 Women in Hedge Funds, a non-profit organisation for professionals in the alternative investments industry, will award Geraldine Sundstrom the 100 Women in Hedge Funds 2010 European Industry Leadership Award at its London Gala on 30 September.
Sundstrom is partner and portfolio manager at Brevan Howard Asset Management.
Each year, the organisation identifies a woman whose professional talent, business ethic and passion for investing help define and advance the hedge fund industry’s standards of excellence.
“We are so pleased to recognise Geraldine Sundstrom’s talents as an investor and her commitment to the hedge fund industry,” says Effie Datson,
The loss of Bear Stearns, Lehman Brothers and Merrill Lynch from the ranks of independent competitors in US equity research gave a boost to smaller providers, including mid-sized and regional brokers, sector specialists and independent research providers.
However, according to the results of Greenwich Associates’ 2010 US Equity Analysts Study, the integration of these research franchises into other large organisations also aided the businesses of the remaining bulge bracket brokers who, as a group, captured a significant portion of the business freed up by market dislocations during the global crisis.
The bulge bracket has been steadily ceding “vote” in
BNY Mellon has been chosen by Goldman Sachs International to provide a segregated sub-custody service to its prime brokerage clients through Montague Place Custody Services.
Through the service, MPCS will use BNY Mellon to hold and safekeep their clients’ assets in certain key markets while continuing to maintain Goldman Sachs International’s prime brokerage and trading relationships.
“Prime brokers are looking to trusted providers like BNY Mellon to deliver a seamless offering that will safeguard their clients’ assets and meet their needs in a changing market and regulatory environment,” says James Malgieri, chief executive of BNY Mellon broker-dealer services. “This is
