How Much Should Smart Beta Cost?
One provider thinks it should be free—at least if it doesn’t outperform traditional indexes.
Asset Allocation
Diversification Beats Portfolio Optimization: Study
Equally weighted stock portfolios consistently rank among the largest mean returns, best Sharpe ratios, and lowest turnover, according to Horizon Investments.
Ex-HP CIOs on the Ideal Asset Allocation Model
Move away from the policy portfolio and dive into factors, long-short positions, and alpha-beta separation, Ken Frier and Gretchen Tai argue.
Asset Owners Reevaluate Tobacco
Just as America’s largest pension fund weighs getting back into tobacco investment, the world’s largest insurance fund announces a break up with the sector.
Kentucky Pension Recommits to Hedge Funds Amid Governance Turmoil
The Kentucky Retirement Systems approved new hedge fund investments as controversy reigned over fund leadership.
Impact Investing is ‘Thriving’: Survey
Investors are putting more money towards social and environmental causes, and reporting encouraging results.
The Yale (and Harvard, Stanford, MIT…) Model
Elite endowments don’t have a “secret recipe” for high returns, but rely on riskier assets for outperformance, according to a paper.
How Twitter Can Help Investors
Research shows that the social media platform provides predictive information regarding future company fundamentals.
Are Insurance Giants Giving Up on Hedge Funds?
AIG and MetLife will be redeeming more than $5 billion in hedge funds combined—but their exits may not mean a mass exodus among insurers.
The Inconsistent Contrarians
Research indicates that pension funds are much better at buying low than they are at selling high.
AIG Dropping Half Its Hedge Fund Portfolio
The $343 billion insurance fund has so far submitted notices of redemption for $4.1 billion.
Private Equity vs. Hedge Funds: A Battle of Expectations
Investors had “more ambitious return targets” for private equity than hedge funds, but were under-allocated to the asset class, according to Preqin.
SWFs ‘Not to Blame for Equity Crash’
An independent think tank claims sovereign wealth funds are unlikely to have been forced sellers.
How to Build Smart Beta 2.0
Tilting an already tilted portfolio can result in higher active share as well as better factor combinations, according to Morningstar.
Public Pensions Still Hungry for Hedge Funds
In choosing to liquidate their hedge fund portfolios, CalPERS and NYCERS are the exception, not the rule, according to Preqin.