Thierry Adant

In our latest "Top of Mind" article, Head of Multi-Asset Strategy @Adam Berger and Portfolio Manager @Peter Carpi discuss factors that could help small-cap stocks rebound and the search for winners in this inefficient segment of the market.

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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

What does the electric vehicle revolution mean for investors? Our private equity experts Nicolas THOMAS and Lorenzo Fusco present 3 innovations, driven by leading private companies. You can read more about the role of private equity in supporting the development of environmental technology here: https://lnkd.in/e3Mwx_Vm #EV #innnovation #privateequity

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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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Check out CNR's proprietary 4Ps analysis framework (Policies, Population, Potential, Profitability), which seeks to identify the best opportunities for global equity investing over the coming decade. Our approach is that, after asset allocation, the next important decision in portfolio construction is where to invest regionally. https://lnkd.in/dswu4BBi

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With the goal of increasing platforms and opportunities to trade stocks in the U.S., the Texas Stock Exchange (TXSE) is soon to emerge as a new stage in the financial markets. Authorized in Dallas, Texas, the stock exchange hopes to level the playing field against the NASDAQ and NYSE, which continue to face headwinds involving company dissatisfaction, rising compliance costs, and newer rules like the one setting targets for board diversity at NASDAQ. To learn more, read our latest insight: Crystal Capital Partners | Plans To Launch The New Texas Stock Exchange (crystalfunds.com) For registered investment advisors only. IMPORTANT DISCLOSURE: https://lnkd.in/e3VJtU2Q #Finance #StockMarket #Investing #CapitalMarkets #Trading #NASDAQ #NYSE #Innovation #TexasBusiness

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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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Huge news in #cta #etf land: AlphaSimplex Group went live today with their managed futures ETF, $ASMF. Important points: - ASG put factor replication of #hedgefunds on the map when Andrew Lo wrote the seminar paper in 2006 (which convinced this guy 👆 to try to commercialize it....). ASMF has, at its core, replication. - Like Man Group, ASG runs a great #mutualfund and now is jumping into the ETF pond. The ecosystem keeps growing and more and more investors will have access to "institutional quality" managed futures products in client-friendly wrapper. - Virtus Investment Partners now owns ASG and is an investment powerhouse that can drive widespread investor education, led by the exceptional Kathryn Kaminski, PhD, CAIA, who coined the term "crisis alpha." To beat the DBi drum: managed futures ETFs represent around 0.02% of the ETF world. This for a strategy that arguably has more diversification value than any other liquid alternative. This is a greenfield, transformational opportunity that already has attracted the likes of Corey Hoffstein with ReSolve Asset Management, Jerry Parker, Mt. Lucas Management (with KraneShares), Simplify to join us, our partners at iM Global Partner, and comparative veterans WisdomTree Asset Management and First Trust. Grow the pie! https://lnkd.in/epfXYHTR

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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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Closet Benchmarking Among UK Equity Funds? In the ever-evolving landscape of UK equity funds, it’s important to identify which funds are truly active versus those more aligned with the benchmark. Our latest research, visualized in the scatter chart below, sheds light on where funds fall on this spectrum, with the X-axis showing stock active share and the Y-axis displaying a blend of country and industry-level active share, compared to the FTSE All Share index. We observe a wide spread of results, showing the diversity in fund strategies, from highly independent stock-pickers to those with a more benchmark-aligned approach. We highlight 4 funds with the greatest independence from the benchmark: • Lindsell Train UK Equity • Finsbury Growth & Income Trust • Aviva UK Listed Equity • Castlebay UK Equity What do they have in common? Low to zero allocations to sectors like Energy, Health Care, and Materials - proving their differentiated approach from the FTSE All Share index. However, it's crucial to note that while 'closet benchmarking' can suggest a lack of transparency, that might not be the case here. Many of the funds with lower active shares fall into specific categories, such as ‘tilt,’ ‘enhanced index,’ or ‘beta plus’. These approaches are deliberate and part of a well-defined fund strategy to remain aligned to benchmark indices. In terms of performance, the inset chart shows that high active share funds have outperformed their lower active share peers over time. Since April 2012, high active share funds have returned 164% on average, compared to 131.6% for low active share, 126.2% for medium active share, and 134.5% for the benchmark FTSE All Share ETF. What do you think about active investing with benchmark constraints? Is true independence from the benchmark the key to success, or do defined strategies with low active share still have a place in the market? #UKEquity #ActiveManagement #FundResearch #Investing #PortfolioManagement #assetmanagement #stocks

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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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With the goal of increasing platforms and opportunities to trade stocks in the U.S., the Texas Stock Exchange (TXSE) is soon to emerge as a new stage in the financial markets. Authorized in Dallas, Texas, the stock exchange hopes to level the playing field against the NASDAQ and NYSE, which continue to face headwinds involving company dissatisfaction, rising compliance costs, and newer rules like the one setting targets for board diversity at NASDAQ. To learn more, read our latest insight: https://lnkd.in/eKv3DbqC For registered investment advisors only. IMPORTANT DISCLOSURE: https://lnkd.in/e3VJtU2Q #Finance #StockMarket #Investing #CapitalMarkets #Trading #NASDAQ #NYSE #Innovation #TexasBusiness

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Fixed Income Forward: June 2024: New hierarchy emerges in bond risk premiums Much has happened in fixed income since the start of the year. But greater differentiation in bond markets has been slow in coming. Only now do we begin to see serious signs of a new hierarchy in risk premiums emerging. By Franck Dixmier, Global CIO Fixed Income and Georgios Georgiou, Global Head Product Specialists Fixed Income at Allianz Global Investors. #FixedIncomeForward #FixedIncome #Bonds #NavigatingRates

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