Links - Alternative Risk

QUOTE OF THE DAY

The cornerstone of any successful long-term investment plan is learning how to deal with ambiguity. Adam Butler

CHART OF THE DAY

ALTERNATIVE RISK

Volatility Driving Investors to Increase Portfolio Diversity, THinkAdvisor. "Increasing market volatility prompted financial advisors to shift client portfolios away from stocks in the first quarter toward bonds and alternative assets, Natixis Global Asset Management reported Wednesday."  

Latest threat to online lenders: 'stacking' of multipleloans, Reuters.    'Many online lenders have failed to detect the “stacking” of multiple loans by borrowers who slip through their automated underwriting systems…'  

The Factors Of Returns, ThePersonalFinancialEngineer.  "What’s really fascinating is that these factors have continued to perform despite the democratization of this knowledge. They weren’t arbitraged away as one might expect, and the evidence exists in the returns of real world funds (even after accounting for fees). "   

Benchmarking Commodity Investments, Blocher, Cooper, Molyboga.  SSRN.  "Overall, our four-factor model prices commodity risk premia better than the Fama-French three-factor model prices equity risk premia, and thus is an appropriate benchmark to evaluate commodity investment vehicles."  

Presidential Election Cycles Good For Managed Futures? Attain Cap.  " a period of rising volatility will tend to be good for these strategies.  And Election Time offers the perfect potential catalyst" 

Hedge Funds Scramble as Investors Run.  NYT 

The House Always Wins With Volatility ETFs, FMD. " These indexes can experience sharp rallies that quicken the pulse and dilate your pupils, but they also have led to consistent wealth destruction over the last seven years." 

Broadly Defined Commodities Rise For Fifth Straight Week, CapitalSpectator.com  

The hedge fund fee structure consumes 80% of alpha. FT.com " Investors bear the risks and managers reap the rewards"