Tag Archives: capital markets

Hedge Fund Performance and Regulation

The hedge fund industry has taken quite a hit over the past year, leaving institutional investors fairly disappointed with ROI expectations. Preqin, the industry’s leading investment analytics company cited its 2015’s aggregate 2.02% return as the worst since 2011. Preqin further reported that 44% of fund managers reported failure to meet return objectives. The hedge fund industry is no lightweight; globally the industry accounts for over USD3 trillion assets under management. Poor hedge fund performance is a strong indicator of how unstable the overall financial system has become, even though the industry is not considered a market maker. Both large and boutique hedge funds that pursued single strategy objectives bore the brunt of poor performance.

Hedge funds that focused on equity, macroeconomic, managed futures and relative value strategies had the most fund closures for last quarter 2015. Funds with multi-strategy, event-driven strategies and credit strategies had the best overall performance, and a larger number of fund launches. On a positive note, the entire industry saw an increased transfer of capital flows from family offices and high-net-worth individuals in 2015. Evidently, private wealth investors have waning confidence in public capital markets.

 

For More: http://financialpolicycouncil.org/blog/hedge-fund-performance-and-regulation

 

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Key Financial Regulations To Monitor

Fourth quarter 2015 was a hard precursor to 2016 both in capital markets and financial corporate governance. Highly volatile commodities and equities markets, an overall slowing of economic growth and a cooling of tech business growth have left the investing landscape bearish. In addition, corporate governance of major financial and business institutions showed signs of increased shakiness; in 2015 HSBC took the governance world by storm with tax evasions, Bank of America and Citi continued to fail bank stress tests and capital requirements and JPMorgan’s stock has significantly underperformed analysts’ expectations.

 

We now open the year 2016 with an SEC fraud charge against the entire executive management and Board of Superior Bank for overstating loan performance. In this light, 2016 will be a year of continued US Federal Reserve and Securities and Exchange Commission (SEC) financial regulation.

For More: http://financialpolicycouncil.org/blog/key-financial-regulations-to-monitor

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The current VC or Entrepreneurship worlds are In a Mess?

I have finally come to the realization; after 30 years on Wall Street and Silicon Valley, that our capital markets are simply obsolete and that it’s high time for a new technology that allocates money and other resources far more efficiently than both our actual technology and government.

The current VC/entrepreneurship worlds are in a mess, and to their credit, the players are doing some serious introspection. But mostly, it is still business as usual.

I have nothing against VCs and angels. Most are extremely smart people. But the world of problems and opportunities is now so complex and fragmented that any system that relies on “bottleneck star-spotting talent” is doomed to hit its limits in short order.

Read More: The current VC or Entrepreneurship worlds are In a Mess?

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The Israeli Hi-tech Experience and what we should all learn from it

Israeli hi-tech experience

the 1990s, Israel emerged as a leading center for technology start-ups and innovation.

In the 1990s, Israel emerged as a leading center for technology start-ups and innovation. In 2000, near the peak of the high-tech boom, Israel had 4000 high-tech firms and new ones were forming at the rate of about 500 start-ups per year.

Today, out of the 101 companies trading on NASDAQ; 63 of them are registered in Israel; a stunning number indeed for a country with a population of only seven million people, the size of Rhode Island and the population of New Jersey.

And the story doesn’t stop here.

The Israeli high-tech industry boasts today 43 of the 50 leading technology giants in the world; all with cutting-edge R&D centers.  Scientific American’s list of ’50 Research Leaders’ include three Israeli scientists. Notwithstanding the fact that S&P credit rating for Israel is still AA – amid a still shaky global environment – , four Israelis have been awarded the Nobel Prize and Israel tech investments have produced consistent and significant returns which only continue to climb.

So the question is: What makes Israeli technology companies so unique?

Read More: The Israeli hi-tech Experience

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Ziad K Abdelnour