Key Points Decision attribution analysis helps portfolio managers determine the impact of their decisions on performance. This type of analysis looks at the individual decisions made by the manager and assesses their value and evidence of skill or bias. While fund managers may change their stock-picking behavior, other decisions, such as when to enter or exit a position, are often … Read More

Key Points: Saudi Arabia’s economy is experiencing significant growth, with record numbers in credit facilities extended to the private sector. Interest rate risk is a key concern in project finance transactions in Saudi Arabia. The allocation of interest rate risk between the project company and the beneficiary entity needs to be carefully considered. Agreeing on an optimal hedging strategy and … Read More

Key Points: Roger Murray made significant contributions to fundamental analysis and value investing, following in the footsteps of Benjamin Graham and David Dodd. His emphasis on uncovering the intrinsic value of stocks and his disciplined approach to long-term investing have had a lasting impact on the field. Murray’s career spanned both investment management and teaching, with stints at Bankers Trust … Read More

– Retirement spending is often assumed to be predictable and increasing with inflation, but in reality, retirees have the ability to adjust their spending and portfolio withdrawals. – Research shows that retirees can cut back on different types of expenses, suggesting that spending flexibility should be better incorporated into financial planning tools and outcomes metrics. – Traditional static models, such … Read More

Key Points: According to the presidential election cycle theory, the third year of the four-year cycle should generate above-average stock returns. The theory suggests that presidents focus on preparing for reelection in the fourth year by being friendly to markets in the third year. Since 1928, the third year of the presidential cycle has produced positive S&P 500 returns 78% … Read More

Key Points: Index funds with lower tracking error may have better post-tax performance. High tracking error may help funds avoid taxable events and boost post-tax returns. Results vary across different asset categories. Low tracking error tends to be associated with better post-tax performance in small-cap, value, and growth funds. Investors often see tracking error as a negative aspect of index … Read More

** Key Points ** – Bitcoin prices did not fall to zero despite the collapse of FTX crypto exchange – Crypto investors heavily rely on social media for investment information – Natural language processing (NLP) techniques applied to crypto-related comments on Reddit reveal sentiment analysis – Sentiment analysis on different subreddits shows correlation with bitcoin prices – The influence of … Read More

Key Points: In the late 19th century, independent managers began taking charge of investing and administering capital. Brokers and promoters now drive the private markets, which exemplify the intermediary-driven nature of financial capitalism. Multiple layers of agents are active in private markets, including fund providers, fundraisers, gatekeepers, and business managers. Private equity (PE) firms have expanded vertically and horizontally, entering … Read More

The FX market is the largest, most liquid market in the world, but also one of the least understood. The FX Global Code was developed to promote fairness, transparency, and integrity in the FX market. The Code outlines six principles that market participants are expected to adhere to. While sell-side participants have largely adopted the Code, buy-side adoption has been … Read More

Key Points: ChatGPT is an advanced chatbot developed by OpenAI that has made significant strides in natural language processing (NLP) and understanding. ChatGPT’s breakthrough lies in its Transformer architecture, which allows it to analyze and extract textual data with great accuracy. With over 175 billion parameters, ChatGPT can provide thoughtful and natural responses to a wide range of queries, making … Read More