Key Points: Private market performance calculations often tolerate mathematical errors and inaccuracies. The variability of cash flows makes performance attribution challenging in private market assets. Metrics such as internal rates of return (IRRs) and total values to paid in (TVPIs) are not suitable for generalization. Accurate performance comparison requires time-weighted metrics and information about capital invested. Misrepresentation and data distortion … Read More

Key Points: Existing financial regulations indirectly apply to artificial intelligence (AI) in the financial services industry. The European Commission issued the proposed Artificial Intelligence Act (AI Act) in April 2021. The AI Act takes a risk-based approach to AI regulation, categorizing AI systems into prohibited uses, high-risk systems, transparent AI applications, and everything else. The financial services sector falls into … Read More

A group of leading investors, finance experts, and academics gathered for a discussion on the equity risk premium. Defining and recognizing a bubble is a challenging task in finance. Momentum is a powerful force in short-term factor studies, but its efficacy is debated. Combining momentum with value investing can yield better results. There are two main explanations for momentum: overreaction … Read More

Key Points Oil prices have surged, leading to an upgrade in Saudi Arabia’s credit rating. However, Saudi Arabia’s economy is focused on diversification beyond oil. The country’s Vision 2030 plan aims to reduce dependence on oil and invest in other sectors. Saudi Arabia’s debt management efforts have been successful, with plans to improve the debt picture further. The country is … Read More

Key Points: – Diversification, which is crucial for risk reduction in investment management, may seem to disappear when it is needed the most. – The accessibility of mutual funds and ETFs has expanded the range of securities available to investors, making it easier to invest in various markets. – However, despite this increased accessibility, diversifying across global stock portfolios may … Read More

Key Points: Damsel in Distressed by Dominique Mielle is an enchanting memoir about her life as a successful hedge fund professional and leader. Mielle’s career at Canyon Partners spanned 20 years, during which she navigated investing challenges and identified untapped opportunities. The book provides a unique perspective on the evolution of the hedge fund industry and the challenges it faced … Read More

Key Points: A new study examines the value of the US government if it were treated like a corporation using a discounted cash flow (DCF) model. The study estimates that the net present value of future government revenues minus government spending is negative, at $21.6 trillion. The US government has the ability to print money and raise taxes, giving it … Read More

Gender lens investing is a powerful approach to achieving gender parity in finance and investment. It involves investing in enterprises owned or run by women and those that encourage workplace equality. Gender lens investing has a wide range of goals, including closing the gender gap in investee and investor firms. Companies with diverse founders and gender-balanced leadership teams tend to … Read More

Key Points: Globalization is facing challenges due to the COVID-19 pandemic and geopolitical unrest. Companies are prioritizing availability over cost optimization and reorganizing supply chains. This shift in supply chains is leading to higher inflation as costs increase for logistics and management. The stability of the post-Cold War era played a significant role in globalization’s disinflationary effects. Geopolitical disruptions could … Read More

The total market capitalization of cryptocurrencies is above the $2 trillion threshold. Tokens are smart contracts based on a blockchain, while coins are the native tokens of a particular blockchain. Raising capital through token financing requires convincing investors of the value of participating in the token sale. There is no strong correlation between changes in token volume and token price, … Read More