Hints and tips:
...See if you can you can spot why: Portfolios ended 2023 with “a record tilt toward momentum” and “the largest tilt towards growth since 2016”, says Goldman Sachs in its latest hedge fund tracker....
...Funds that equal weight the S&P 500 index — buying the same amount of every stock irrespective of its size — saw record inflows last year, even though this approach hit investors in the pocket as the tech...
...This tilt towards the US would have been an incredible tailwind over the past decade in particular....
...Since it launched in 2016 the GQG Partners Global Equity Strategy has gained 10.7 per cent a year, ahead of its benchmark MSCI ACWI index at an annualised 7 per cent, according to fund documents....
...The talks, which are no longer active, underscored the ambitions of Sheikh Tahnoon bin Zayed, the powerful brother of the ruler of Abu Dhabi, who has had a tilt at various financial services companies over...
...Some bought active funds in the hope that their outperformance was due to expert stockpicking. Instead, many active funds outperformed simply because of their tilt towards growth stocks....
...A decade ago, in the early days of smart beta, the firm chafed at the idea of factor-tilts being a replacement for traditional market-cap-weighted indices....
...Broadly speaking, active managers as a group tend to tilt towards factors known as “size” and “value”....
...As for SAGP, “we don’t make the rules,” Clifton said, “we just figured out there was alpha there.”...
...the wider market, or, in industry jargon, generate “alpha”....
...In fact, this simple, systematic tilt towards lower-rated corporate debt explains why bond funds on average do a far better job of beating their indices than equity funds, AQR argued....
...Green assets have negative capital asset pricing model alphas [deviations from the expected market return], whereas brown assets have positive alphas....
...This dichotomy has led to the strongest tilt towards cash since the aftermath of September 2001, says BofA....
...“Investors need to have the ability to consistently pick top alternative managers since alpha performance is not persistent,” he said....
...Relative stability is useful for luring funds to a country with a low savings rate....
...By 1985 it launched a fund called Alpha Tilts which leaned on research that showed how investors could systematically beat indices by “tilting” towards certain stock characteristics, such as cheapness....
...This annual charity event at the swanky Dorchester Hotel has a guest list featuring some of UK business’s alpha males....
...AHL’s Alpha and Dimension funds have gained only 1-2 per cent this year; BlueTrend, a fund run by Leda Braga’s Systematica, has lost 6.4 per cent, while David Harding’s $9.9bn Winton Futures Fund has trod...
...Such tilts are not new....
...For any inflow of funds, there must have been an outflow; for any overweight in the market, there must be an offsetting underweight....
...Typically, for a smart beta fund you would face only slightly higher fees and costs than you need to pay for a index-tracking fund such as an exchange traded fund or ETF....
...The future of one of Schroders’ flagship funds will rely on a larger number of smaller active bets, says Philip Matthews, the man now in charge of the Schroder UK Alpha Plus fund....
...Investors in passives still have to make asset allocation decisions, such as what proportion of equities to bonds, or whether to tilt more towards emerging markets than developed ones....
...I’m after one fund, for the long term, at low cost where the manager adds real value, or alpha as it’s called in the trade. To find the right fund, I’m using all sorts of different measures....
...At MSCI, Dimitris Melas, global head of new product research, says pension funds and endowment funds are “starting to recognise alpha [excess returns] comes from systemic risk and return [factors]....
International Edition