This quarter’s prime reads reveal what’s capturing the eye of funding professionals: overreliance on conventional valuation fashions, the efficiency of actual property throughout inflationary shocks, AI-driven technique growth, and heightened tensions in non-public markets. From debates on discounted money stream (DCF) and hedge fund worth to financial institution liquidity dangers and profession alternatives in wealth administration, these standout blogs replicate a number of the most urgent questions shaping right this moment’s funding panorama.
1. The Discounted Money Circulation Dilemma: A Software for Theorists or Practitioners?
Is the discounted money stream (DCF) mannequin a relic of monetary principle, or a sensible software for right this moment’s buyers?
Sandeep Srinivas, CFA, explores the continuing debate surrounding the DCF mannequin, analyzing its relevance and software in fashionable funding evaluation. His submit delves into the strengths and limitations of DCF, offering insights for each theorists and practitioners.
2. Did Actual Property Present an Inflation Hedge When Buyers Wanted it Most?
In instances of rising inflation, do actual property really provide the safety buyers search?
Marc Fandetti, CFA, investigates how actual property carried out as an inflation hedge through the 2021–2023 COVID-era surge. He analyzes index-level knowledge and finds that almost all actual asset classes underperformed as hedges, with solely commodities providing modest safety towards inflationary pressures.
3. What Lies Beneath a Buyout: The Advanced Mechanics of Non-public Fairness Offers
Non-public fairness offers are sometimes shrouded in thriller. What actually occurs behind the scenes?
Paul Lavery, PhD, uncovers the intricate mechanics of personal fairness buyouts, shedding mild on the monetary buildings and techniques employed. His submit presents an in depth take a look at the roles of acquisition automobiles and the influence on portfolio firm efficiency.
4. The Endowment Syndrome: Why Elite Funds Are Falling Behind
Elite endowments have lengthy been seen because the gold customary in funding. So why are they underperforming?
Richard M. Ennis, CFA, delivers a pointy critique of elite endowment efficiency, arguing that heavy allocations to various investments have persistently eroded returns. Drawing on years of information, he reveals that the extra establishments spend money on alts, the more severe they carry out — difficult the very basis of the endowment mannequin.
5. Volatility Laundering: Public Pension Funds and the Influence of NAV Changes
Are public pension funds masking their true efficiency by NAV changes?
Richard M. Ennis, CFA, delves into the observe of volatility laundering, the place public pension funds modify web asset values (NAVs) to clean returns. He explores the implications of this observe on fund transparency and investor belief.
6. Six Causes to Keep away from Hedge Funds
Hedge funds promise excessive returns, however are they well worth the threat?
Raymond Kerzérho, CFA, outlines six compelling the explanation why buyers may wish to avoid hedge funds. From excessive charges to lackluster efficiency, his submit offers a vital evaluation of the hedge fund business and its influence on institutional buyers.
7. Utilizing ChatGPT to Generate NLP-Pushed Funding Methods
Can synthetic intelligence revolutionize funding methods? ChatGPT may simply be the important thing.
Baptiste Lefort, Eric Benhamou, PhD, Jean-Jacques Ohana, CFA, Béatrice Guez, David Saltiel and Thomas Jacquot, CFA, spotlight the potential of AI to research monetary knowledge and predict market traits, providing a glimpse into the way forward for funding administration. They homed in on a well-liked LLM, ChatGPT, to research Bloomberg Market Wrap information utilizing a two-step methodology to extract and analyze international market headlines.
8. Past Financial institution Runs: How Financial institution Liquidity Dangers Form Monetary Stability
Liquidity threat is greater than only a buzzword. It’s a vital think about monetary stability.
William W. Hahn, CFA, examines the position of liquidity threat within the banking sector, utilizing current high-profile failures as case research. He emphasizes the significance of sturdy liquidity threat administration in sustaining monetary stability and stopping crises.
9. Financial institution Runs and Liquidity Crises: Insights from the Diamond-Dybvig Mannequin
The Diamond-Dybvig mannequin presents timeless insights into financial institution runs and liquidity crises.
William W. Hahn, CFA, revisits the basic Diamond-Dybvig mannequin to offer a deeper understanding of financial institution runs and liquidity crises. He discusses the mannequin’s relevance in right this moment’s monetary panorama and its implications for policymakers and buyers.
10. 2025 Wealth Administration Outlook: Highlight on Funding Careers
What does the longer term maintain for funding careers in 2025?
April J. Rudin presents a complete outlook on the wealth administration business, specializing in rising traits and profession alternatives. She offers invaluable insights for professionals seeking to navigate the evolving panorama of funding careers.
This quarter’s prime reads reveal what’s capturing the eye of funding professionals: overreliance on conventional valuation fashions, the efficiency of actual property throughout inflationary shocks, AI-driven technique growth, and heightened tensions in non-public markets. From debates on discounted money stream (DCF) and hedge fund worth to financial institution liquidity dangers and profession alternatives in wealth administration, these standout blogs replicate a number of the most urgent questions shaping right this moment’s funding panorama.
1. The Discounted Money Circulation Dilemma: A Software for Theorists or Practitioners?
Is the discounted money stream (DCF) mannequin a relic of monetary principle, or a sensible software for right this moment’s buyers?
Sandeep Srinivas, CFA, explores the continuing debate surrounding the DCF mannequin, analyzing its relevance and software in fashionable funding evaluation. His submit delves into the strengths and limitations of DCF, offering insights for each theorists and practitioners.
2. Did Actual Property Present an Inflation Hedge When Buyers Wanted it Most?
In instances of rising inflation, do actual property really provide the safety buyers search?
Marc Fandetti, CFA, investigates how actual property carried out as an inflation hedge through the 2021–2023 COVID-era surge. He analyzes index-level knowledge and finds that almost all actual asset classes underperformed as hedges, with solely commodities providing modest safety towards inflationary pressures.
3. What Lies Beneath a Buyout: The Advanced Mechanics of Non-public Fairness Offers
Non-public fairness offers are sometimes shrouded in thriller. What actually occurs behind the scenes?
Paul Lavery, PhD, uncovers the intricate mechanics of personal fairness buyouts, shedding mild on the monetary buildings and techniques employed. His submit presents an in depth take a look at the roles of acquisition automobiles and the influence on portfolio firm efficiency.
4. The Endowment Syndrome: Why Elite Funds Are Falling Behind
Elite endowments have lengthy been seen because the gold customary in funding. So why are they underperforming?
Richard M. Ennis, CFA, delivers a pointy critique of elite endowment efficiency, arguing that heavy allocations to various investments have persistently eroded returns. Drawing on years of information, he reveals that the extra establishments spend money on alts, the more severe they carry out — difficult the very basis of the endowment mannequin.
5. Volatility Laundering: Public Pension Funds and the Influence of NAV Changes
Are public pension funds masking their true efficiency by NAV changes?
Richard M. Ennis, CFA, delves into the observe of volatility laundering, the place public pension funds modify web asset values (NAVs) to clean returns. He explores the implications of this observe on fund transparency and investor belief.
6. Six Causes to Keep away from Hedge Funds
Hedge funds promise excessive returns, however are they well worth the threat?
Raymond Kerzérho, CFA, outlines six compelling the explanation why buyers may wish to avoid hedge funds. From excessive charges to lackluster efficiency, his submit offers a vital evaluation of the hedge fund business and its influence on institutional buyers.
7. Utilizing ChatGPT to Generate NLP-Pushed Funding Methods
Can synthetic intelligence revolutionize funding methods? ChatGPT may simply be the important thing.
Baptiste Lefort, Eric Benhamou, PhD, Jean-Jacques Ohana, CFA, Béatrice Guez, David Saltiel and Thomas Jacquot, CFA, spotlight the potential of AI to research monetary knowledge and predict market traits, providing a glimpse into the way forward for funding administration. They homed in on a well-liked LLM, ChatGPT, to research Bloomberg Market Wrap information utilizing a two-step methodology to extract and analyze international market headlines.
8. Past Financial institution Runs: How Financial institution Liquidity Dangers Form Monetary Stability
Liquidity threat is greater than only a buzzword. It’s a vital think about monetary stability.
William W. Hahn, CFA, examines the position of liquidity threat within the banking sector, utilizing current high-profile failures as case research. He emphasizes the significance of sturdy liquidity threat administration in sustaining monetary stability and stopping crises.
9. Financial institution Runs and Liquidity Crises: Insights from the Diamond-Dybvig Mannequin
The Diamond-Dybvig mannequin presents timeless insights into financial institution runs and liquidity crises.
William W. Hahn, CFA, revisits the basic Diamond-Dybvig mannequin to offer a deeper understanding of financial institution runs and liquidity crises. He discusses the mannequin’s relevance in right this moment’s monetary panorama and its implications for policymakers and buyers.
10. 2025 Wealth Administration Outlook: Highlight on Funding Careers
What does the longer term maintain for funding careers in 2025?
April J. Rudin presents a complete outlook on the wealth administration business, specializing in rising traits and profession alternatives. She offers invaluable insights for professionals seeking to navigate the evolving panorama of funding careers.
