Dmitri Shadrin

Over 240 firms added 450+ strategies to the Nasdaq eVestment platform in 1Q24 for visibility with consultants, intermediaries, and investors. The newly marketed strategies were added by firms domiciled across 30 unique countries spanning from Australia to Singapore to Switzerland, and 28% indicated integration of ESG considerations into their respective investment processes. From a geographic standpoint almost 200 were broadly diversified (i.e. had a global investment focus) in nature, however, in total the newly promoted strategies spanned over 30 different regions across #balanced, #equities, #fixedincome, #hedgefund and #realestate capabilities. Please see the link below for further details… (managers please do contact the Nasdaq eVestment team should you have questions regarding optimizing presence/visibility, opportunities, and relevant trends/insights of those areas where your firm has expertise!).

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Is the U.S. Economy Stronger Than We Think? At Yale's recent CEO Caucus, 84% of top CEOs expressed optimism, predicting a "soft landing" for the U.S. economy. Surprisingly, 81% were taken aback by the economy’s resilience, despite widespread pessimism in public polls. With inflation dropping and unemployment at historic lows, real wages are growing, and GDP surpassed expectations. CEOs agree: the economy is outperforming the gloomy forecasts. What’s your take on that? Source: https://bit.ly/47Sds0i

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New Whitepaper from Caron's Corner: In this paper we discuss new management techniques required to capture higher returns in a higher inflation regime. A new market regime is upon us catalyzed by rising inflation risks. This presents a challenge to investors seeking to compound returns at target levels with stability because it increases correlation risks. Effectively, it pushes the efficient frontier inwards and reduces risk-adjusted return potential. In this paper, we explain how we counter this adverse impact to returns in this new regime through a new management approach with the goal of achieving stable target returns. https://mgstn.ly/3QNuw0f

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If you think portfolio risk management is just about diversification, think again. This article sheds light on some surprising strategies that challenge common perceptions. Here are some thought-provoking takeaways: - Did you know that reducing the number of investments in a portfolio can sometimes actually decrease risks? It's all about strategic selection. - Contrary to popular belief, actively managing risk doesn't necessarily mean more frequent trading. In fact, a hands-off approach can be a smart move. - One of the key points discussed is the importance of understanding the correlation between investments, a factor often overlooked in risk management strategies. - Asymmetric risk and the role it plays in portfolio management is explored, offering a fresh perspective on balancing risk and return. - Ever considered tail risk hedging? This article dives into this lesser-known strategy that can enhance risk management effectiveness. Share your thoughts and feelings on these unconventional risk management strategies. https://lnkd.in/ecgSpH93

Portable alpha overlays with low correlations to traditional asset class exposures can help provide diversifying, additive returns, particularly during drawdowns in risky assets that typically occur at the end of economic expansions. Is now the time to consider an overlay? Read the new white paper from PGIM Quantitative Solutions: https://on.pru/3WkGOAU

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Financial markets continuously adjust and readjust as new information and events unfold. Markets are intrinsically predictive, taking into account the likelihood of future scenarios. Recent times have seen a cascade of changes. Currently making headlines are the unfolding events of the Republican Convention following Butler, PA, including JD Vance being named as VP candidate. Yesterday’s speeches struck a chord of unity, which I personally see as positive. However, when wearing an international lens, the sentiment appears more insular, isolationist, pro-tariff, and against geopolitical involvement. While this stance may seem logical initially, historical evidence indicates that the ripple effects can be perilously profound. The United States has previously tried to adopt an isolationist approach, best exemplified by the implementation of Smoot Hawley Import Duties in 1930 and its withdrawal from the League of Nations back in the 1920s, despite President Woodrow Wilson's leadership position in the committee. Such actions contributed to the rise of fascism. The subsequent economic turmoil of the 1930s is well-documented. Given today’s heightened global interconnectivity, isolationism would certainly diminish America’s sway and provide opportunities for nations like Russia and China to expand their influence and aggression unchecked. Domestic divisiveness only amplifies our global vulnerabilities. It is imperative for U.S. political dialogue to steer away from incendiary rhetoric and divisive “us versus them” narratives towards a culture of respectfulness and reasoned debate characterized by courtesy and informed reasoning. This approach should form the foundation and starting point. From there, we should strive for a foreign policy that prevents the U.S. from becoming isolated and instead allows it to maintain a significant role in the international community, promoting the advancement of human civilization to its greatest capacity. #politics #foreignpolicy #POTUS #geopolitical #markets #RNC

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“There are valid concerns around the pursuit of large, multi-strategy firms and what they mean for client outcomes. Who is communicated to first in a larger organization? Which funds will get the best deals? Will a parent company encourage a short-term, profit-maximizing mindset, forcing investment teams to focus on asset-gathering rather than long-term returns? Can you really be a fiduciary if you also have shareholders?” Read more from Claire Sawyer on CAIA Association’s blog.

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This is the best summary / decision tree for #directindexing, I've ever seen. One use case that's missing though, is the correction for concentrated positions, e.g. in the case of stock options of people working for large corporates. Another one is faith-based investing, since most ESG funds are not sufficiently covering that topic - Taber Johnson and Reid J. Steadman can tell you more!

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As the DOW Jones closed above 40,000 for the first time in its history, Olaolu Aganga recently joined the team on CNBC’s Closing Bell to discuss our playbook in alternatives and current strategic and tactical asset allocation views. Through what many have described as a “supercycle” election year, we see large asset owners seeking out stability in longer-term allocations to alternatives – including private credit and private equity. Typically marked to market at a slower rate, exposure to alternatives can provide important stability through more volatile periods. Balancing strategic and tactical decision making across portfolios is all about assessing risk and return relative to time horizon. Strategically, we’ve been neutral on Europe for some time, but tactically, we’ve been looking internationally to capture opportunities across emerging markets, most recently in China where we see valuation distortion. Join the Mercer Investments team and Olaolu Aganga LIVE in Nashville for the Global Investment Forum June 10-12: bit.ly/3Vm71yw

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Fixed income in 2024 - Lessons from History | Steven Friedman and Valentina Chen examine how asset allocators should consider the role of fixed income in their portfolios in 2024. Steve looks at the potential benefits but also analyzes three scenarios that present downside risks. https://bit.ly/440WKKe

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How is #NuveenInfrastructure’s clean energy team reducing carbon emissions while generating critical clean power globally? Read the 2023 clean energy infrastructure sustainability report, which includes a detailed overview of avoided emissions across our equity and credit strategies, how we incorporate physical climate risk considerations into our investments, as well as how we aim to protect marine life during offshore wind construction.

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Fixed income in 2024 - Lessons from History | Steven Friedman and Valentina Chen examine how asset allocators should consider the role of fixed income in their portfolios in 2024. Steve looks at the potential benefits but also analyzes three scenarios that present downside risks. https://bit.ly/440WKKe

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BNY Investments is proud to be an LPL ETF NTF Partner,* providing access to our suite of ETF strategies to help meet your clients’ needs and ambitions. With BNY’s ETF lineup, you can take advantage of the following: - No transaction fees - Potential diversification through differentiated index and active ETF strategies - Intraday liquidity and possible tax efficiency benefits of an ETF wrapper Click here to learn more about our ETF strategies and read important disclosures: https://bny.mn/3A9uVog *LPL ETF NTF Partner Program is not affiliated with BNY. #IndexETFs #ActiveETFs #ModelPortfolios

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One thing I value about Meradia is that I am always learning from my colleagues. This brief article by Ryan Bond, CFA, MBA, PMP reminding us about the value of collateral management is just another example of the expertise Meradia can bring to the table. #meradia

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Today, I published LVS Advisory's Q3 2024 investor letter which discusses our recent investment performance and an investment in Medpace $MEDP. https://lnkd.in/e67V2EZh

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CLO Equity has gained recognition as an institutional investment strategy in recent years. And with good reason. CLO Equity is relatively uncorrelated to other core asset classes and offers the potential for high cash flow and attractive total returns. The drivers of CLO Equity returns, however, are more complex than meets the eye. Conventional wisdom is that the best times to issue CLOs is when the arbitrage (“arb”), or net interest margin, is historically wide. Yet, our analysis, detailed in a recently issued white paper authored by my colleague Stephanie Walsh, suggests this sentiment might be misleading. Despite high initial equity arbitrage being a strong predictor of new CLO creation, it has actually shown a negative correlation with ultimate CLO equity performance. So what are the drivers of CLO Equity performance? To answer this question, it’s essential to look beyond just the arb. We find there are other key influences on CLO performance, such as asset prices, refinancing transactions, and manager expertise, among others. 1) CLOs issued during market downturns, such as in 2020 and 2022, exhibited significant upside, despite poor initial arbitrage, due to subsequent market rallies. 2) Moreover, the ability for CLOs to refinance liabilities after non-call periods added flexibility and, in many cases, substantially lowered debt costs, as seen in the refinancing wave of 2021. 3) Manager expertise also plays a crucial role. We’re privileged to have a 23+ year track record of managing, structuring, trading, and investing in CLOs. Through that experience, we’ve come to understand that credit expertise, loss avoidance, and trading acumen are often key components of CLO portfolio returns. As with many aspects of investing, there is more than meets the eye when assessing the CLO space in our view. We believe one cannot simply look at one or two metrics to determine whether a CLO will perform better or worse relative to history or other CLOs. The arb, and its weak correlation to ultimate CLO equity returns, is a prime example of this. Rather, there are a multitude of factors driving CLO equity returns, some market driven, and others influenced by manager performance and deal structuring. We believe it is important for investors to understand all of these factors when evaluating CLOs and CLO managers. Explore our full thoughts: https://lnkd.in/e48bEvWN

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In a recent Top of the Morning podcast, Paul H., Daniel Cassidy, and I discussed our recent report assessing the likelihood of a "Roaring '20s" scenario for the US economy. We touched on what the scenario looks like, the key drivers for it to happen, how policy is a wildcard that could make the scenario more or less likely, and general investment implications if it were to happen. Listen to the podcast for all the details. #shareubs https://lnkd.in/eTrGnzCv

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