Michael Tiedemann: Here’s What’s Fueling Our Growth (Barron’s)
THAT WORRY ACCOMPANIES WEALTH may seem paradoxical, but Michael Tiedemann says his firm’s 400-plus client households almost invariably fret about their heirs. “Most of them share the fear that the wealth they’ve generated is going to somehow do damage to the next generation or the ones following it, that their kids will be preyed on, and that their work ethic won’t translate,” says the CEO of New York-based Tiedemann Advisors, Barron’s 11th ranked RIA firm. Speaking with Barron’s Advisor, Tiedemann – whose firm manages $17 billion of assets under management – explains how he and his team of 37 advisors help clients address their concerns. He reveals that impact investing has become a magnet for new business. And he warns that stimulus from the Fed and the Treasury has created peril in the stock market.
Cohen’s Point72 to Open Warsaw Office for Some Back Office Teams (Reuters)
BOSTON(Reuters) – Billionaire investor Steven A. Cohen’s Point72 Asset Management is opening the $16.2 billion firm’s latest satellite location in Warsaw and moving some back office operations to lower-cost Poland. Point72, based in Stamford, Connecticut with 1,500 employees around the world, expects to hire 150 people in Warsaw by the end of 2021.
BlackRock’s Profit Jumps 21% as Investors Surge Into Bond Funds (The Wall Street Journal)
Money management giant BlackRock Inc.’s quarterly profit rose 21% as investors leaned on bond funds to make new bets in volatile markets roiled by the coronavirus pandemic. A quarter ago, asset managers came under acute pressure as markets sold off. But after the Federal Reserve rushed in to stabilize markets, many investment firms reaped the benefits of the Fed’s intervention in the second quarter. Higher asset prices translate to bigger revenues for managers like BlackRock as they take a cut of fees on money they oversee…
Global Hedge Fund Industry Buffeted by Headwinds, Says New Report (Hedge Week)
The global hedge fund industry is currently facing a number of headwinds, from fee pressure, increased redemptions and liquidations, to the decreasing new fund launches as investors around the world look towards defensive strategies, according to a new report from ResearchAndMarkets.com. But despite the tough times, the industry saw a double-digit annualised return in 2019 for the first time in the past six years.
Hedge Funds Hit by Unconventional Policies (Hedge Nordic)
Stockholm (HedgeNordic) – A new study by Alexei Orlov of the U.S. Securities and Exchange Commission and Massimo Guidolin of the Bocconi University tested whether and how hedge fund strategies are exposed to monetary policy shocks. According to the study, the impact of unconventional monetary policies applied by major central banks has been found to be negative on hedge fund performance. Proxying the hedge fund industry with the Credit Suisse Hedge Fund Index, Orlov and Guidolin measured the performance of ten hedge fund strategies against 18 unconventional monetary policy announcements by the Federal Reserve and the European Central Bank between 2008 and 2016.