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Musings on Markets: The Bonfire of Venture Capital: The Good, Bad and Ugly Side of Cash Burn!

Musings on Markets: The Bonfire of Venture Capital: The Good, Bad and Ugly Side of Cash Burn! | BLC | Scoop.it
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Private Equity Ponders Hewlett Packard Enterprise Buyout

Private Equity Ponders Hewlett Packard Enterprise Buyout | BLC | Scoop.it
Several private equity firms including KKR, Apollo Global Management and Carlyle Group are sniffing around Hewlett Packard Enterprise, contemplating a buyout of the firm, said a person who has had talks with representatives of the firms. Such a deal would be worth more than $40 billion.A buyou
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Occam’s Razor Redux: Establishing Reasonable Expectations for Financial Market Returns: The Journal of Portfolio Management

Reasonable expectations for capital markets returns are the foundation on which all investment programs are built. The model used to develop these critical expectations does not need to be complex. Rather, inspired by Sir William of Occam’s Law of Parsimony, the authors review a model for developing reasonable expectations that was first articulated in a 1991 issue of The Journal of Portfolio Management. The model is simple and intuitive. The authors describe its effectiveness over the 25 years since the model was first applied and provide their view on reasonable expectations for stock and bond market returns in the decade ahead. They close by discussing the model’s implications for investors and the financial sector.
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Getting More Value out of the Value Factor: The Journal of Investing

This article provides a model for predicting whether value stocks will outperform growth stocks and whether value stocks’ outperformance will be positively or negatively correlated with equity markets. The model’s intuition is that value stocks tend to perform best when 1) markets are performing well, 2) analysts are optimistic about long-term earnings growth, 3) volatility is low, and 4) markets are relatively expensive. The authors also find that the relationship between value stocks’ outperformance and equity market returns is more positive when analysts are less optimistic about long-term earnings growth. Investors may be able to improve their factor returns and reduce their portfolio volatility by dynamically calibrating their value stock factor exposures.
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Bill Sharpe: Past, Present, and Future of Financial Thinking

Bill Sharpe: Past, Present, and Future of Financial Thinking | BLC | Scoop.it
Past, Present, and Future of Financial Thinking
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The Future of Empirical Finance: The Journal of Portfolio Management

Empirical finance is in crisis. The profession’s most important discovery tool is historical simulation, and yet most backtests and time series analyses published in journals are flawed. The problem is well known to professional organizations of statisticians and mathematicians, who have publicly criticized the misuse of mathematical tools among finance researchers. In this article, the author points to three problems and proposes four practical solutions. In an attempt to overcome the challenges posed by multiple testing and selection biaes, the author emphasizes the need to move from an individual-centric to a community-driven research paradigm. Low retraction rates can be corrected through technologies that derive “peer p-values.” Stronger theoretical foundations and closer ties with financial firms would help prevent false discoveries.
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Musings on Markets: The Aging of the Tech Sector: The Pricing Divergence of Young and Old Tech Companies

Musings on Markets: The Aging of the Tech Sector: The Pricing Divergence of Young and Old Tech Companies | BLC | Scoop.it
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Musings on Markets: Bubble, Bubble, Toil and Trouble: The Costs and Benefits of Market Timing

Musings on Markets: Bubble, Bubble, Toil and Trouble: The Costs and Benefits of Market Timing | BLC | Scoop.it
How can you tell if you are in one?  And if you do believe you are in a bubble, what is your best
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Eugene Fama: QE Doesn’t do Much

Eugene Fama: QE Doesn’t do Much | BLC | Scoop.it
Nobel prize winner Eugene Fama has done his homework on QE and seems to understand the basic accounting behind it that so many others misinterpret. In this
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BlackRock Emerging Market Marker | BlackRock Blog | Global Market Intelligence

BlackRock Emerging Market Marker | BlackRock Blog | Global Market Intelligence | BLC | Scoop.it
Get the latest insights and intelligence from the experts at BlackRock.
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Asset Allocation: Q3 Expected Returns

Asset Allocation: Q3 Expected Returns | BLC | Scoop.it

In a world of low bond yields and slow economic growth, historically realized 5-6% real (7-8% nominal) asset class returns may be unrealistic expectations for the future. Using a structural “building blocks” approach, we forecast long-term returns, made available in the charts below.


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The World’s Largest Sovereign Wealth Funds Go Private

The World’s Largest Sovereign Wealth Funds Go Private | BLC | Scoop.it
Sovereign funds are turning to private market investments to diversify portfolios and boost returns.
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Integrity Research» Blog Archive » Buy Side Investors Unlocking the Value of the Web

Datasift
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Testing Piketty’s Hypothesis on the Drivers of Income Inequality : Evidence from Panel VARs with Heterogeneous Dynamics

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Silicon Valley’s Most Popular Dealmakers

Silicon Valley’s Most Popular Dealmakers | BLC | Scoop.it
The Information subscribers appear to have a thing for Goldman Sachs. The investment banking giant, which has been trying to bolster its tech credentials for years, won our subscriber poll of investment banks in every category we asked about. Subscribers identified it as the bank they’d mos
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INVESTORS FROM THE MOON: FAMA

INVESTORS FROM THE MOON: FAMA | BLC | Scoop.it
A highlight of the Fiduciary Investors Symposium at Chicago Booth School of Business was an intimate Q&A session with the “Father of Modern Finance” and Nobel
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Economics: An Empirical Science Capable of Forecasting Economic Events?: The Journal of Portfolio Management

Frank J. Fabozzi
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The Whole Story: Factors + Asset Classes

The Whole Story: Factors + Asset Classes | BLC | Scoop.it
determine which principal components command a premium and which do not. Then we examine the “canonical” correlation between the principal components and the various factor strategies of interest. This will help us identify which factor strategies derive greater returns than their exposure to systematic volatility would warrant, and which, in contrast, derive less return than their exposure
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Why Active Investing Is a Negative Sum Game

Why Active Investing Is a Negative Sum Game | BLC | Scoop.it

By Eugene F. Fama and Kenneth R. French

 
Erhan BLC's insight:

William F. Sharpe has a great article in the January/February 1991 issue of The Financial Analysts Journal (Vol. 47, No.1, pages 7-9). The title is "The Arithmetic of Active Management." It should be required reading for academics and investment professionals alike.

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Goldman’s New Partner Class Shows Shrinking Role of Trading Unit

Goldman’s New Partner Class Shows Shrinking Role of Trading Unit | BLC | Scoop.it
Goldman Sachs Group Inc.’s new class of 78 so-called partners spotlights the shrinking role of trading, the growth of other businesses and one area where progress is slow: the addition of women to its highest ranks.
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Most Hated: Stocks - Bloomberg Best (and Worst)

Most Hated: Stocks - Bloomberg Best (and Worst) | BLC | Scoop.it
Find out who's number one on Bloomberg best and worst lists. Read interactive rankings on business, economics, lifestyle, investing, personal finance, politics and education.
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Here's Bill Gross' First Letter As A Fund Manager At Janus

Here's Bill Gross' First Letter As A Fund Manager At Janus | BLC | Scoop.it
I would have stayed to my last breath. I was honored by the trust of the millions of clients and thousands of employees over decades. They have been the center of my life’s work. I am very proud of my record there for more than 40 years. PIMCO is a great firm with lots of great people, and Allianz was a fine owner for many years. But slowly and with great hesitation, I came to understand that it was time for me to leave
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Daniel's review of Flash Boys: A Wall Street Revolt

Daniel's review of Flash Boys: A Wall Street Revolt | BLC | Scoop.it
system generated a bunch of crazy and embarrassing trades that lost Goldman hundreds of millions of dollars..." Yes, but this was on the Options market, on Options exchanges, and has
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