David Asarnow

An interesting observation from a recent Goldman Sachs’s report: “Systematic managers have a notably different allocator base to the hedge fund industry at large… These strategies are considerably more popular with institutional investors – especially sovereign wealth funds, pension funds, insurance companies – and the intermediaries that serve them… Endowments, foundations and hospital systems are the notable exception within the institutional category… – which we believe is more due to their greater exposure to discretionary strategies. By contrast, there is very little allocation to these strategies from the private capital community: family offices, HNWIs, private banks, RIAs and other wealth platforms... We believe this is reflective of two particular challenges of these strategies: their complexity and ‘black box’ tendencies (making them less understandable to non-institutional investors) and their tax inefficiency for US taxable investors (given high portfolio turnover).” I would add that smaller investors do not have a need for high-capacity strategies, such as CTA or Systematic Macro despite their apparent diversification benefits. Unsurprisingly, most of the investments into quant/systematic space comes from North America. 

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You should listen to Nathan Geraci and I leverage VettaFi sentiment data to talk #ETFs for ‘25. But it’s ok to read the recap Nicholas Wodeshick from the show too. . - Use case for defined outcome, structured protection, and covered calls from NEOS Investments Calamos Investments Innovator ETFs® - Growing interest in CLOs and bank loan #ETFs from Janus Henderson Investors Invesco US Panagram BondBloxx - #Dividend strategies from SS&C Technologies and ProShares - Plus Ben Johnson, CFA commentary Zachary Csillag Troy Cates Tim Urbanowicz, CFA Andrew Nelson, CFA Matt Kaufman, CETF® Frank J. Tirado, MS Jessica Fernandez Michelle DeWitt, CIMA® Rob Stewart Danielle Gilbert Christopher Murphy Paul Baiocchi, CFA Steve Munroe JoAnne Bianco, CFA Joanna Gallegos Colleen Kapoor Cole Feinberg

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See you all tomorrow (Dec. 19) on @CNBC-Overtime at 4pm ET. Nine down days in a for the Dow as of yesterday, the most since 1978, as economically sensitive stocks give back their post-election runs. Mega cap tech outperforms, again. What to do for 2025? Stay tuned. @barbara_doran1 #investments #finance

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December indigestion caused by the Federal Reserve's comments today? The S&P was humming along until the FOMC cut 25 bps as expected, and the changes to the statement were trivial (although the vote to cut wasn’t unanimous). Chairman Powell wasn’t a reassuring voice at this meeting, and the market’s confusion led to hawkish projections and speculations for 2025. The S&P 500 closed at the day's lows, -3%. Capital flow was heavy at 145%. Today's move lower in the stock market was significant. We’re below the 50-day moving average for the first time since September. We’re not oversold (yet), and we’re (only) back at mid-October levels. From a technical standpoint, the rest of December should be a race for the exits….but dip-buyers will (most likely?) do their thing. It's worked for the last 12+ years, so why stop now? Considering today’s drop is rooted in a market unprepared for a Fed that wasn’t gung-ho with spiking the punch bowl a lot more, it could mean that once investors relax and think, they won’t believe this is all that bearish. If that’s the case, watch for an enjoyable bounce back. In summary, the fundamental landscape isn’t radically altered; however, the emotional landscape temporarily is.

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We have just seen a further pullback in Fed policy expectations for 2024. What are the implications of higher for longer rates for credit investors? Read our Q2 2024 Credit Outlook for an in-depth analysis. https://ow.ly/3nlh50RfHAx

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#hedgefund stockpickers are doing something right this year. Per Goldman Sachs data: - Longs up 30% -- 500 bps ahead of the roaring S&P Global 500 index and 1200 bps ahead of the MSCI Inc. ACWI index. - Shorts only up 12%. Impressive.

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From rate cut hopes to market turbulence: On TCW's latest #FocusOnFixedIncome podcast, Global Rates Co-Heads Jamie Patton and Bret Barker unpack the bond market's dramatic shift this year and analyze the Treasury's critical part in economic revival efforts with host Patrick Moore. Listen:

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Revolutionizing Equity Analytics: Introducing the Second Edition of "Equity Analytics" and the Enhanced Equities Entity Store I am delighted to announce the release of the second edition of "Equity Analytics," a ground-breaking work that sets a new standard in equity analysis. This edition is launched in parallel with a significant upgrade to the Equities Entity Store, providing financial professionals and researchers with an unrivaled suite of resources and capabilities. Discover Cutting-Edge Advancements in Equity Analytics The second edition of "Equity Analytics" incorporates the latest research and practical applications to help you navigate modern financial markets. This edition features advanced topics, including: - Equity Convexity factor modeling to outperform index benchmarks - Market Timing with ETFs to optimize swing trading strategies - Dynamic Time Warping for market pattern recognition - Constructing Robust Equity Portfolios to withstand market volatility - Mean Reversion strategies using Internal Bar Strength - Innovative Pairs Trading with Fractional Differencing These additions enhance your analytical toolkit and empower you to make data-driven decisions with confidence. Harness the Power of the Equities Entity Store 2.0 The second edition coincides with a major upgrade to the Equities Entity Store, now in version 2.0. This expanded store offers: - Extensive, in-memory entity stores with over 7,700 equities, approximately 500 indices, and more than 2,500 ETFs - Seamless integration with Interactive Brokers TWS platform for real-time market data, account information, and sophisticated order execution capabilities - Highly efficient, compiled and parallelized code for high-speed, vectorized back-testing and walk-forward optimization Built for Adaptability and Scalability The Equity Analytics library and Equities Entity Store are designed to be highly adaptable and scalable, allowing for the seamless integration of new asset classes and innovative analytical methodologies. Embark on a Transformative Journey in Financial Analysis The second edition of "Equity Analytics" is a powerful tool that invites you to explore new frontiers in financial analysis. We encourage you to seize these opportunities and join us in shaping the future of the financial industry. To learn more about how this transformative resource can revolutionize your approach to equity analysis, visit: - [Equity Analytics Book Details](https://lnkd.in/ezBy2AFw) - [Equities Entity Store Information](https://lnkd.in/epg-5wwM) Together, let's redefine the boundaries of equity analytics and embark on this groundbreaking journey.

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In this month’s First Eagle Alternative Credit update, Portfolio Manager and Senior Alternatives Strategist Larry Holzenthaler explains how repricing drove spread compression in 2024 and where the team is seeking relative value while keeping overall credit quality at fairly prudent levels. https://bit.ly/3DwAiiY

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A good in-depth article by Bloomberg Law It is definitely not a beta trade when looking at CMBS…it’s adult swim kiddos! If you are interested, reach out to your Schroders client group representative on our article “Ratings are the hardest part” relating to these global AAA CMBS challenges. And if you recognize the song reference in my title- you’ll be singing that song all day ;) If you know, you know! #cmbs

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In an era of unknowns, it’s important to embrace idiosyncratic opportunities that can boost alpha, especially when it comes to fixed income. Read our team’s top seven alternative strategies for boosting alpha in a fixed income portfolio: https://ow.ly/v28R30sCc8g

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The return of the inverse stock-bond correlation is good news for multi-asset portfolios. Download our Asset Allocation Outlook to learn more.

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Mike Gitlin sat down with portfolio manager Mark Casey to discuss areas of opportunity and Mark’s long time horizon for investing. Mark offered an interesting take on robots, an arm of artificial intelligence that seems to get less airtime than #AI language models. ▶️ Watch now on YouTube https://lnkd.in/gSHymn2A #Investing #MarketTrends #Robotics

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