Allocator Notes @AllocatorNotes

Long-form pieces on alternative investments ~monthly allocatornotes.com Joined November 2020

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Allocator Notes @AllocatorNotes

3 years ago

“The market has got one function, and that is trying to steal your money every day. The best way the market could steal your money in July was to rally, and so that’s what it did.” - Nicolai Tangen

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Allocator Notes @AllocatorNotes

3 years ago

UBS: small HFs (AUM < $1bn) were the only segment to see net inflows in Q2 (+$0.91bn), while large funds (AUM > $5bn) and mid-sized funds (AUM $1bn - $5bn) saw net outflows of -$19.6bn and -$7.2bn respectively.

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Allocator Notes @AllocatorNotes

3 years ago

Product knowledge and strategy intelligence of cap intro teams isn’t nearly as strong as the banks would like you to believe.

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Allocator Notes @AllocatorNotes

3 years ago

JPM reports HF launches in 2021 increasing headline fees, with founder share classes at 1.3% and 17% (up from 1.2% and 15% in 2019).

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Allocator Notes @AllocatorNotes

3 years ago

De Finetti’s thought experiment: A bet pays $1 if there was life on Mars 1 billion years ago. The price you are willing to buy or sell that claim indicates the probability to which you believe it to be true. Willing to buy/sell for $0.05, you believe it’s a 5% probability.

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Allocator Notes @AllocatorNotes

4 years ago

Delivery and ride hauling prices are finally going up. Can we call the beginning of the end of pensioners subsidizing metropolitan lifestyles via blue chip VC funds?

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Allocator Notes @AllocatorNotes

4 years ago

GS’ prime client North American net exposure % of overall prime book is at five-year high. JPY and China net exposures at multi-year lows.

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Allocator Notes @AllocatorNotes

4 years ago

Terry Smith of Fundsmith highlights the impact of 5% inflation based on gross margin, via L’Oreal and Campbells. He is not addressing the ability of these corps to pass on inflation to consumers, rather, inflation’s unproportional impact on corps with high COGS a % of revenue

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Allocator Notes @AllocatorNotes

4 years ago

Does anyone have any recs for resources that detail the inner-workings / plumbing of prime brokerage Not sure if this would take the form of a white paper as this depth wouldn’t be marketed, rather, special reports to BODs in public filings, Twitter threads, or anything else

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Allocator Notes @AllocatorNotes

4 years ago

“Returns are only generated by taking more risk, even if that risk remains hidden for a period of time”. Drobny, 2010 I think there is a lot of truth in this, despite the market not being perfectly efficient. True mispricings are much less common than hidden risk, but do exist.

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Allocator Notes @AllocatorNotes

4 years ago

My favorite quote from Man’s Quantitative Credit primer: ‘An optimised portfolio solution is not optimal if you cannot trade it.’ Obvious, yes, but often overlooked in the plethora of models. Preston, Cole, Kamenski, Lam savvyinvestor.net/sites/default/…

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Allocator Notes @AllocatorNotes

4 years ago

Great resource - a list of 47 U.S. pension funds' policy weights and rebalancing bands and policies nasra.org/files/Compiled…

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Allocator Notes @AllocatorNotes

4 years ago

"CDPQ revealed its European ambitions as cash-strapped governments around the world court foreign capital in an effort to tap finance for infrastructure programmes and fund their switch to low carbon economies." Another $12Bn USD into Europe from CDPQ ft.com/content/d5cf80…

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Allocator Notes @AllocatorNotes

4 years ago

Sector Curse: looking at a recently promoted PM’s book and being able to tell which sectors they covered as an analyst The PM thinks they know the sector best, and assigns a larger than deserved weighting given the macro backdrop From Stuart Roden overcast.fm/+yOwCFxM_Y

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Allocator Notes @AllocatorNotes

4 years ago

One of many non-obvious conflicts pointed out by Swensen. Institutions executing securities lending on behalf of security owners typically strike profit sharing arrangements, with no participation in the downside, creating undue credit risk