Investing

[ad_1] With recession forecasted in many economies this year or next, distressed situations will be an important source of deals for prospective investors. But what will matter is whether the targets are permanently impaired or can be turned around. Two real-life scenarios from the debt bubble of the early aughts […]

[ad_1] Taking nonfinancial information into account when conducting financial analyses is not entirely new to professional investors and analysts. But the demand for information beyond revenue, earnings, and other conventional accounting measures has increased significantly in recent years. This year, investors with over $130 trillion in assets asked more than […]

[ad_1] Digital assets have had a wild ride over the last year. Several centralized crypto companies, from the hedge fund Three Arrows Capital to the crypto exchange FTX, have failed, while the SEC, the Commodities Futures Trading Commission (CFTC), and other US agencies have initiated a regulatory onslaught against crypto-related […]

[ad_1] Consumer spending accounts for almost 70% of nominal US GDP. As such, consumer sentiment ought to have some correlation with market performance. Financial journalists certainly act as though it does. Whenever new sentiment or confidence numbers — consumer or otherwise — are released, pundits spring into action, speculating on […]

[ad_1] The evolution of language models is nothing less than a super-charged industrial revolution. Google lit the spark in 2017 with the development of transformer models, which enable language models to focus on, or attend to, key elements in a passage of text. The next breakthrough — language model pre-training, […]

[ad_1] Thomas M. Idzorek, CFA, is the author of “Personalized Multiple Account Portfolio Optimization,” for the Financial Analysts Journal, and co-author of Popularity: A Bridge Between Classical and Behavioral Finance, from the CFA Institute Research Foundation. Like many topics that inspire passion and thoughtful debate, environmental, social, and governance (ESG) […]

[ad_1] How many attractive stock ideas does Naomi, an institutional active equity fund manager, have at any one time? “Oh, I think between 10 and 20,” she told me. So, why did her fund hold so many more times that number of stocks? “To round out the portfolio,” she said. […]

[ad_1] Two institutional managers I know — one at a Fortune 500 defined benefit pension fund and another at a municipal pension fund and later an endowment — believe in going all-in on active management. To them, a 100% active allocation is not only okay but desirable. Of course, anyone […]

[ad_1] “There are these people who think we don’t have to take all these tough decisions to deal with our debt. . . . It’s as if they think there’s some magic money tree. Well, let me tell you a plain truth: there isn’t.” — David Cameron, UK Prime Minister, […]

[ad_1] Evaluating investment managers is a challenging endeavor. Why else would asset owners expend so much time and resources, often with the aid of consultants, to conduct manager searches? Proper manager selection and evaluation requires thorough due diligence, but a relatively simple filter can serve as a helpful initial screen […]