Ira Koyner

Fidelity Managed Portfolios adding three new liquid alternative strategies. Ilan Kolet, institutional portfolio manager, outlines the strategy behind the addition of liquid alts and the benefits they may provide to Fidelity Managed Portfolios. Watch the full video: https://ow.ly/JSRq50RHli9 #FidelityCanada

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Updated weekly, Weekly Flows Reports provides an in depth look at ETF flows across all asset classes over the past week. The FREE report will be released every Monday morning and can be access via the ETF Action homepage along with the Daily Data Pack, the Category Spotlight, and the Video Insights. Highlights from this week's Weekly Flows Report Equity: U.S. Large Cap Blend ETFs gathered more than $8.5 billion in net inflows last week The Fixed Income: Taxable - Government Long category also saw $2.3 billion in net inflows for the week The Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) saw the largest net outflows amongst U.S. Size & Style ETFs with nearly $2 billion The Health Care Select Sector SPDR Fund (XLV) gathered $498 million in net inflows The SPDR S&P Homebuilders ETF (XHB) led thematic ETFs in net inflows with $113 million while the ARK Innovation ETF (ARKK) saw $103 million in net outflows For Fixed Income ETFs, the iShares 20+ Year Treasury Bond ETF (TLT) saw another $1.9 billion in net inflows to view the entire report please see the image below www.etfaction.com - Free Investing tools Sign up for our daily note: https://lnkd.in/ez29Dap #investing #etfinvesting #ETFs

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Updated weekly, Weekly Flows Reports provides an in depth look at ETF flows across all asset classes over the past week. The FREE report will be released every Monday morning and can be access via the ETF Action homepage along with the Daily Data Pack, the Category Spotlight, and the Video Insights. Highlights from this week's Weekly Flows Report The Equity U.S. Large Cap - Blend Category gathered another $8.9 billion in net inflows last week The Vanguard FTSE Emerging Markets ETF (VWO) saw $505 million in net outflows for the week while the iShares MSCI EAFE ETF (EFA) saw $429 million in net inflows The Vanguard Total Stock Market ETF (VTI) also saw nearly $1.6 billion in net outflows The VanEck Semiconductor ETF (SMH) saw the largest net inflows amongst Sector & Industry ETFs last week with $847 million, the Industrial Select Sector SPDR Fund (XLI) saw $605 million in net outflows The ARK Innovation ETF (ARKK) saw the largest net outflows for Thematic ETFs at $260 million For Fixed Income ETFs, the iShares Broad USD High Yield Corporate Bond ETF (USHY) gathered $1.25 billion in net inflows while the iShares 20+ Year Treasury Bond ETF (TLT) saw almost $1 billion in net outflows To view the entire report please see the image below www.etfaction.com - Free Investing tools To have reports like these delivered daily subscribe here: https://lnkd.in/ez29Dap #investing #etfinvesting #ETFs

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In this session, learn how PIMCO's experts are navigating differences in monetary policies and economic outlooks in order to optimize portfolio performance 👉 https://lnkd.in/eXUHZvwC

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In the category of "you can lead an #allocator horse to water but you cannot make it drink": Using PivotalPath #hedgefund index data, the chart below shows #alpha generation of core sub-strategies relative to the MSCI Inc. All Countries Weighted equity index from September 2015, when the indices went live, through May of this year (was planning to write something clever on this over the summer then ... summer 😬). Strategies are ranked from high alpha on the left to low on the right. Bubbles are sized by AUMs. Managed futures #hedgefunds generated the most alpha but are an astoundingly low 6% of the hedge fund world. This for a strategy that can be accessed with low fees, daily liquidity, no gating/suspension risk, etc. Next to it are #multistrat hedge funds, which you can access, if you're lucky, for extremely high fees and forever-ish lockups. Avert your eyes from the Equity Diversified train wreck on the lower right. Lots to say on why, but the argument is several-fold and nuanced and there's not enough room here. Suffice it to say that #ctas really shouldn't be trapped in the hedge fund bucket anymore. Take it, Sting. https://lnkd.in/ezr8J7w5

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18 Comments

DBi seeks to find the simplest, most efficient path to replicate the pre-fee returns of #hedgefunds. Allocators often question whether it's too simple. Here's an astonishing quote from Nick Patterson, a pioneering quant at Renaissance Technologies LLC: "I think the most important thing to do on data analysis is to do the simple things right. So, here’s a kind of non-secret about what we did at Renaissance: in my opinion, our most important statistical tool was simple regression with one target and one independent variable. "It’s the simplest statistical model you can imagine. Any reasonably smart high school student could do it. Now we have some of the smartest people around, working in our hedge fund, we have string theorists we recruited from Harvard, and they’re doing simple regression. Is this stupid and pointless? Should we be hiring stupider people and paying them less? And the answer is no. "And the reason is nobody tells you what the variables [are] you should be regressing. What’s the target? Should you do a nonlinear transform before you regress? What’s the source? Should you clean your data? Do you notice when your results are obviously rubbish? And so on. "And the smarter you are the less likely you are to make a stupid mistake. And that’s why I think you often need smart people who appear to be doing something technically very easy, but actually usually not so easy." "Do the simple things right" and "don't make a stupid mistake" sums up what Mathias Mamou-Mani and I have sought to do for fifteen years. #hedgefunds #ctas #ucits #etfs

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Tune into an insightful discussion with Group CIO Dan Ivascyn and Global Economic Advisor Rich Clarida on how PIMCO constructs portfolios today using its deep knowledge of global macro, policy, and industry dynamics. Read our latest outlook → https://bit.ly/3zt9SNa #fixedincome #activemanagement

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Reminder: The deadline to submit to the CFA Institute your GIPS® Compliance notification is June 30. If your organization claims compliance with the GIPS standards, you must submit the GIPS Compliance Notification Form annually. Ensure your compliance and submit your form before the deadline. 📅 Find out more and submit here: https://lnkd.in/gYEsxVth 📍 Stay up to date on all upcoming Q3 filing deadlines for investment advisers here: https://lnkd.in/gkPtgUJS GIPS® is a registered trademark owned by CFA Institute. #investmentstandards #compliance #ACAinsights

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👢 CPI Report Kicks 0.50% November Rate Cut to the Curb 👢 🌡 Warm CPI, Not Hot. Although the September CPI report was a touch warmer than expectations, it’s still relatively consistent with an ongoing (albeit noisy) trend of price stability. Headline advanced 0.2% month-over-month vs. 0.1% consensus and core grew 0.3% vs. 0.2%, as food and shelter costs were some of the largest contributors for the month. 🔬 Down in the Details. The underlying components were a bit all over the map, as food prices were up 0.4%, energy down -1.9%, core goods up 0.2%, shelter up 0.2% and core services less shelter up 0.6%. Despite the orderly disinflation observed over the past few months, it’s historically abnormal to see all components moving in the same direction on a sustained basis. 👀 Seeing Through Volatility. There’s been a pickup in volatility from the data underpinning the Fed’s primary mandates (i.e., jobs and inflation). In contrast, the Fed is going to seek to strike a more stable central tone to what it would like to accomplish in its nascent easing cycle than what the data might point them toward on a month-to-month basis. As a result, investors should avoid knee-jerk reactions to individual reports and instead take a step back to see the bigger picture, which is an economy with a strong labor market and relative price stability. ✂ Fed Reaction Function. It felt like the jobs report took a 50bps November cut off the table, but this CPI report kicked it to the curb. There may even be some discussion questioning the necessity of a 25bps cut in November. However, the Fed will likely proceed with a quarter-percent cut in order to establish a smooth trajectory, in recognition that they are starting from a point that is well above neutral and constrictive for economic growth. #Inflation #CPI #FederalReserve #Economy #Investments

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With many investors seeking #income and risk mitigation in today’s volatile markets, what strategies could help? Consider a #CoveredCall solution like CI U.S. Aggregate Bond Covered Call Fund (or ETF version). This diversified bond fund uses a covered call writing program for enhanced monthly income with potential downside protection. https://ow.ly/TR4v50SU5UK

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Monitor: US BSL CLO New Issue Arb Trend Since 2017 The median arbitrage metric YTD at 195 bps is actually lower than in both 2022 and 2023, but this year’s new issue volume has already far exceeded the past two years’ volume on an annualized basis. Similarly, 2018-vintage deals had the lowest median arbitrage metric at 191 bps, but 2018 was a record-breaking year for new issue #CLO volume at the time. On the other hand, 2020-vintage deals had the best median arbitrage metric at 243 bps, but their new issue volume was the lowest. If you’re interested in learning more about the premium content or would like a walkthrough of the website via Zoom, please don’t hesitate to email me at [email protected]. https://lnkd.in/e6sUTfjw

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Do positive stock-bond correlations kill the case for #hedgefunds? Using PivotalPath data, the bubble chart below shows the correlation of various #hedgefund strategies to #stocks (horizontal axis) and #bonds (vertical axis) -- scaled by current AUMs. Most strategies are, and have always been, positively correlated to #equities but with lower #volatility. Hence, when stock-bond correlations were negative, hedge funds overall could be positioned as a fixed income substitute, something I wrote about in 2021: https://lnkd.in/endwxVaQ When stock-bond correlations flip to positive, though, most hedge fund strategies will have high correlation to BOTH stocks and bonds. The data below covers both negative and positive regimes. Assuming positive is the New Normal (see research from AQR Capital Management, Verdad Advisers and others), most bubbles will gradually slide down to the lower left -- not a good place to be. Of course, an astute allocator might notice that the #macro and #cta bubbles are quietly floating on the upper right -- the #diversification sweet spot. Maybe it's time to pump those up and deflate the others?

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October is traditionally a volatile month for markets and this year there are several risk factors to consider. Portfolio Manager George Cipolloni, CFA joined Schwab Network's “Market on Close” to discuss his fourth quarter outlook and what is impacting markets as we head into earnings season. Watch here: https://lnkd.in/eexhvM2W #MarketVolatility #EarningsSeason #Investing #AssetManagement #Value #ValueInvesting 

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