The Trump Effect: Will the Repricing Stay or Go?

The Trump Effect: Will the Repricing Stay or Go?

Since the announcement of the US presidential election, the financial markets have been pricing-in the positives that could be realized from President Trump’s policy proposals. This has had two immediate results: US equity indices are claiming new highs and US treasuries are declining significantly. Today, there are diverging views on whether this re-pricing of financial assets is sustainable or if they are fragile enough to reverse course in the event these policies are ineffective or slow to solidify. 

GRAVITAS + LINEDATA HOLD TOWN HALL TO ANNOUNCE ACQUISTION TO GRAVITAS EMPLOYEES

GRAVITAS + LINEDATA HOLD TOWN HALL TO  ANNOUNCE ACQUISTION TO GRAVITAS EMPLOYEES

On Friday, January 27, 2017, Linedata Founder & CEO Anvalary Jiva and Gravitas Founder & CEO Jayesh Punater held a town hall in New York for Gravitas employees to announce the acquisition of Gravitas by Linedata.  Employees tuned in from Gravitas’ five global offices including via video and phone conferencing from Chicago, Greenwich, Mumbai and Ahmedabad.

Linedata acquires Gravitas, expanding into outsourced services and further developing its presence in North America

Linedata acquires Gravitas, expanding into outsourced services and further developing its presence in North America

Neuilly-sur-Seine, January 27, 2017 : Linedata (LIN:FP), the global solutions provider to the investment management and credit industries, today signed an agreement to acquire Gravitas Technology Services (Gravitas), a leading provider of middle office and technology services to the asset management industry. Gravitas is based mainly in New York (USA) and Mumbai (India).

Highlights from "The Impact of New Technologies on Alpha" Panel

Highlights from "The Impact of New Technologies on Alpha" Panel

In case you missed our most recent event, The Impact of New Technologies on Alpha, here are some highlights from the panel discussion.

2016 was a challenging year for asset managers, especially up until Election Day.  With the commoditization of information, managers have lost their competitive edge and are now looking for new ways to create alpha.  

Data and information have to be looked at differently.  Now, more than ever, greater emphasis has been placed on gaining unique access to data -- with the best source of unique data being your company’s own information on its clients’ and partners’ activities.  In order to make your unique data actually useful, it is pertinent that you first organize and clean your data before analyzing it.  

BIG DATA, MACHINE LEARNING, AI…blah blah blah!

BIG DATA, MACHINE LEARNING, AI…blah blah blah!

It’s been a tough year for performance and it’s been equally difficult to find alpha. The demise of active asset management has been predicted and the move to Exchange-Traded Funds (ETFs) and robo-advisors is now imminent.

In the wake of these large shifts, many funds are beginning to look for new ways to leverage data and uncover insights throughout the investment process to recapture their “edge.”  The “big boys” like Two Sigma, Bridgewater, Point72, and Renaissance have been at it for years – so how is the rest of the industry going to catch up? 

HUG YOUR COO.

HUG YOUR COO.

The role of the COO is becoming more and more paramount in an increasingly volatile, competitive, and regulated market landscape.

Historically, money management activities, followed by marketing and raising capital, have been the most important activities for a fund. However, now, the role of the fund’s operating platform, and hence that of the COO, is equally important for investors, regulators, and the funds.

Over the last five years, three key factors have played a role in this change...

Brexit: A Risk Scenario Framework For Investors

Brexit: A Risk Scenario Framework For Investors

With the British referendum to either remain or exit the EU quickly approaching, we would like to present a market stress scenario that can be used to estimate probable PnL impact on a buy-side portfolio to best predict what a UK vote in favor of Brexit on June 23rd really means.
 
The majority of economists predict a lower economic growth rate (or recession) in the UK economy in the medium to long term if Britain opts to leave the EU.  This would result in a degree of uncertainty in the EU and UK economies, as the UK makes up almost 15% of the EU's economy in nominal GDP terms.  The UK's current account deficit with EU partners makes the referendum even more important, as the UK would have to sell more debt to finance it.
 
If Brexit were to happen...

Past, Present & Future: Leveraging Simulation To Analyze Tail Risk

Past, Present & Future: Leveraging Simulation To Analyze Tail Risk

Do you have the tools to gain valuable insights for navigating worst losses and abnormal returns?

Portfolio strategies often account for the “normal” nature of expected return even when there is empirical evidence of a major market crisis on a global scale (every 3 to 4 years for the last two decades).  To determine whether or not it makes sense to spend money on reducing fat-tailed statistical return distribution, which represents the greater likelihood of a major event occurrence, a fund manager needs the appropriate tools to analyze the distribution in a specific time dimension (past, present and future).

Past: What does a portfolio’s worst returns in the left tail look like if risk factors (e.g. price, interest rates, credit spreads, volatility, etc.) were to behave in a similar fashion as they did in historical events of severe market shocks?

Looking Ahead: How Technology Is Reshaping The Asset Management Business

Looking Ahead: How Technology Is Reshaping The Asset Management Business

It’s been awhile since we have talked about innovation in the FinTech industry and how it affects the asset management industry, especially the alternative investment industry.  While there has been a significant amount of progress in business to consumer models (take peer-to-peer lending, crowd sourcing or online banking as examples), very little innovation exists in the corporate world outside of what blockchain and digital assets are already promising to revolutionize.  (Blockchain technology basically allows two counter parties to keep one set of records for all transaction and accounting activities).  

So why is there resistance to innovation?