| |Investors are always looking for ways to enhance cash returns – higher yield with liquidity and limited principal risk. The timing for using different enhanced cash techniques changes with market conditions. Widening the choice set through investing in alternative risk premia may be a way to meet enhanced cash goals without significantly increasing risk … Read more Changing the dynamics of enhanced cash – Switch from credit to alternative risk premia
| |Don’t worry about inflation – the Fed isn’t. Or, the Fed believes there is no value is trying to get ahead of any inflation increase given the relatively tight range for inflation. The market penalized any fixed income investor that acted on inflation fears. Any Fed objective function has a higher weight on growth … Read more Inflation – Where do we go from here?
| |I am not a football fanatic, but I picked up this book on a recommendation and was amazed by Lombardi’s insights on leadership and management. Mike Lombardi is long-time football executive and media analyst. The book focuses on Bill Belichick and the New England Patriots, but his conclusions could apply to any money management firm. A good money management firm is successful because it acts like a well-disciplined organization with a common purpose. That is no different than a competitively run sports organization. Lombardi finishes his book with five key recommendations for firm success that are worth presenting in bold … Read more Mike Lombardi, football coaching and investing
| |After hundreds of discussions with hedge fund managers, I am still surprised that there is a fear of revealing investment processes under the assumption that someone will steal their ideas and intellectual capital. There are few investment styles that are truly unique and special. What is special is still strategy execution – the practical process of delivering returns. Skill is with the decision-making execution of information and strategy. … Read more “The Emeril Lagasse Theory” – Practical knowledge and culture is not often transferable
| |Endowments are supposed to be the smart money, yet if you review the recent exhaustive paper on return performance, you will get a different impression. Large endowments do better than small endowments but when you compare with a simple 60/40 stock bond balanced fund there is not a lot of alpha generated. See “Investment Returns and Distribution Policies of Non-Profit Endowment Funds” from ECGI … Read more Endowments need help – Performance not strong versus balanced fund
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