✪ Richard Simpson ✪’s Post

Kim Bolton, President and Portfolio Manager of Black Swan Dexteritas, Inc., shares his insights into October 2024's top investment opportunities, highlighting these companies: 📈 Teradyne (TER NASD): A leader in advanced testing and automation solutions, Teradyne is helping industries improve efficiency and ensure the quality of high-tech products. 📈 Dassault Systèmes (DASTY ADR): From SOLIDWORKS to CATIA, Dassault Systèmes provides crucial software tools driving innovation across multiple industries. With Pascal Daloz set to become the new CEO in January 2024, Dassault is poised for exciting growth. 📈 Hyundai Motor Company (현대자동차) (HYMTF ADR): Hyundai is not just about cars; it's about the future of mobility, including electric vehicles, hydrogen technology, and robotics, bolstered by its acquisition of Boston Dynamics. With Bolton’s BSD Global Tech Hedge Fund focusing on quality tech stocks and maintaining a balanced strategy, these picks are set to navigate market complexities and capture future growth. #TechStocks #KimBolton #BlackSwanDexteritas #Teradyne #DassaultSystèmes #Hyundai #BostonDynamics #Investing #StockMarket #MarketOutlook https://lnkd.in/gJN3a_6v

Valuations are not set arbitrarily, though it may sometimes seem like that on the outside looking in. In this clip from LSI USA ‘23, Kyle Dempsey, MD, MBA tries to help demystify valuation-setting and share MVM's view. He covers a range of scenarios, from companies that underperform to those that exceed expectations, and how it affects the valuation setting logic. At LSI USA ‘24, Rik Vandevenne (Moderator), Rebecca Raabe, Paul McCreadie, and Matthew Schopp, will revisit this topic during their panel, Resetting the Scales: Navigating Valuation and Financing Expectations in 2024. This session will get us current with the latest valuation considerations/trends amongst other things. I've got this one flagged on my must-see list. You can watch last years full panel from LSI USA ‘23, What are Medtech's Leading Investors Looking for Right Now?, here: https://lnkd.in/eeUN9sTA Discussions on early and growth stage valuations and capital raising will be a major part of our program at LSI USA ‘24.

Practical Applications of The Term Structure of Machine Learning Alpha is here: https://lnkd.in/g4iHmKTY By Li Cai, Ricky Cooper & Di He In R&D Premium: The Intangible Side of Value, from the October 2023 issue of The Journal of Investing, authors Li Cai and Ricky Cooper of the Illinois Institute of Technology and Di He of the Industrial and Commercial Bank of China find that a portfolio consisting of both research and development (R&D) and value strategies achieves high returns while lowering volatility. On its own, an R&D-intensive (RDI) portfolio results in significantly higher returns than a value portfolio, but this comes at the cost of increased risk. Practical Applications · The book-to-market (B/M) ratio is an inadequate measure of an RDI firm’s value. While the B/M ratio is a common value metric, it deemphasizes intangible assets, which are critical to the financial performance of RDI firms. · RDI portfolios achieve excess returns, yet this comes at the cost of higher risk. In contrast, value portfolios are less risky, but they also have lower returns. · Value investing serves as a hedge to an RDI portfolio. Investors with high risk tolerances can add more R&D stock to their value portfolios to increase returns, while defensive investors can add less to mitigate risk. #FactorInvesting #RDInvestment #ValueInvesting #FinancialResearch #InvestmentStrategies

We are thrilled to announce the finalization of our working paper titled “Predicting Returns of Listed Private Equity”. This paper is the result of a fantastic collaboration between IMD, RWTH Aachen University, and LPX AG. 📚 Abstract: We examine the predictive power of the net asset value (NAV)/price ratio for the LPX50 index, a key benchmark in the field of listed private equity, using monthly data from 2002 to 2024. Using a risk factor model, we demonstrate the index's significant exposure to small-cap and value stocks. Autocorrelation tests indicate market inefficiencies and suggest potential predictability of future returns. Both in-sample and out-of-sample analyses confirm the NAV/price ratio as a significant predictor of future returns, particularly over longer investment horizons and when excluding periods of financial instability. When the index's NAV is relatively low compared to its market price, investors can increase their exposure to value risk and potentially achieve excess returns. Keywords: Listed Private Equity, Return Prediction, Factor Investing This paper was co-authored by Michel Degosciu, Arthur Enders, Karl Schmedders, and myself. We are grateful for the opportunity to work together and contribute to the field of listed private equity. The paper is particularly relevant for institutional investors, such as pension funds and family offices, and offers valuable insights into private equity and venture capital, as well as private markets and alternative investments in general. Stay tuned for more updates and insights from our research! https://lnkd.in/eAygv3yX #PrivateEquity #FinanceResearch #Investment #Collaboration #IMD #RWTHAachen #LPXAG #InstitutionalInvestors #PensionFunds #FamilyOffices #PrivateMarkets #AlternativeInvestments

EFRAG is working on the revised LSME for a more simplified LSME standard. The ESRS LSME Exposure Draft (ED) has successfully transitioned from the public consultation phase, where feedback was analysed, to the deliberation stage, where the standard was reviewed and evaluated to determine the next steps and final approval. With this in mind, EFRAG would appreciate investors, standard users, and other experts' technical input on the standard final version. If you want to contribute, express your interest in the early September online workshop. The article below provides more information. #LSMEs #sustainabilityreporting

Why is this market seeing an exodus of investors, and should you consider doing likewise? https://bit.ly/48Kr8cC #MarketTrends #FinancialAdvice #MarketAnalysis #Investing #Behavior

In this video, Rebecca Mun, CFA, Director at S&P Global Ratings, delves into the critical themes shaping CLO investments this year. Watch the interview below from #GlobalABS 2024 and gain valuable perspectives on what investors should consider to navigate the evolving CLO landscape effectively. Watch the full interview here: https://okt.to/QtJKCV

Using the Hu methodology has the potential to increase the average market capitalization of a private company up to 13.7%, due to a more effective and defensible valuation of the intangible value related to corporate responsibility or sustainability efforts. You already have the Data + The Value of your Good Works has been documented (defensible evidence) => How much can a Hu Valuation impact your Bottom Line? => About the Hu (https://lnkd.in/gC6tV3NV). #impactinvesting #hudsm2024 #esgracs #esgreporting #sustainability #Hu Krysti Clayton Mostert, Karter Smith, Chris Draper, Nicky Gillibrand, Stephanie Majeran, Chris Tesarski, Chrissy Culek, Aaron Santos, PhD, Justin Venetucci, Brandi Amantea, Ese Okereka, Aubrey (Martinez) Alvarez (She/Her), Ramon Solis

💭Every advisor has opinions. Do you ever ask your advisor for their personal opinions? Asking your advisor for their opinions is an important part of the discovery, or rediscovery, process. How else are you going to know if you're actually rowing in the same direction with your advisor? To that end, here are some of my opinions: 1️⃣ - 1️⃣ If you're solely relying on the S&P 500 for your growth and diversification, I'm not in love with that. The S&P is "cap weighted." That means the biggest participants have the biggest impact on your performance. The MAG7 make up about 40% of it and tech is like 35%, as a sector. 1️⃣ - 2️⃣ Something to consider is incorporating an equal weight allocation to offset the heaviness of the MAG7 in cap weight. In a vacuum, I don't love this either because a 10yr annualized performance means an underperformance by about 3% in the equal weight. 1️⃣ - 3️⃣ Recency bias makes us think the S&P is unbeatable and "500" makes us think it's diversified, but I tend to disagree. I'd love to know your opinion, please share if you'd like! #financialplanning #assetmanagement #investments

As we embrace the transition into the summer months, the perennial question resurfaces: Is it time to "Sell in May and Go Away"? Our Head of Research, Ernst Knacke, delves into this age-old strategy in his latest article published by RankiaPro.   Read the full article below👇🏼:   #SP500 #Equities #Investing