Professional investors face a world of challenges, from managing risk to identifying macro trends and alpha opportunities. Hosted by Sandy Rattray, Chief Investment Officer at Man Group, these are the problems and solutions at the top of his – and your – agenda.
The Rise of Quant Credit
Quant credit remains a relatively niche investment area compared to quant equity.
The attraction of quant credit is clear. Fixed income is still dominated by large, slow-moving, buy-and-hold money and unlike equity markets it is not yet heavily trawled by quant managers. Consequently, it is a market rife with inefficiencies and quant strategies exist to harvest the opportunities that such inefficiencies throw off.
Quantitative investment strategies are increasingly using the growing amount of data generated by the fixed income and credit markets to deliver uncorrelated returns and eliminate the human biases to which discretionary investors are susceptible.
Paul Kamenski and Robert Lam, Co-Heads of Credit at Man Numeric, join Sandy Rattray and The CIO Agenda to discuss why a systematic approach to credit is moving from the niche to the mainstream and the opportunities for alpha on offer.
Download the full white paper on quant credit here.
You can also read the full transcript of the episode here.
What to Do About Bonds?
For years, investors have benefitted from the simplicity of the 60/40 portfolio. However, going forward, hedging historically expensive equities with historically expensive bonds may result in futility. Assumptions about bond/equity correlations and the Federal Reserve’s ability to control yields may also challenge investors.
Peter van Dooijeweert, Managing Director of Multi-Asset Solutions, joins Sandy Rattray and The CIO Agenda to discuss the search for potential bond replacements and why an alternative solution may reside in giving up on that search entirely.
Where Next for Emerging-Market Debt?
As the successful rollouts of effective Covid-19 vaccines have rekindled investor optimism, emerging markets have seen a comeback in recent months.
We believe that it is prudent to remain cautious on emerging markets for five reasons: overall debt burdens; Chinese credit impulse; deteriorating conditions across the largest developed markets; a lack of catalysts for EM currency appreciation versus the US dollar; and positioning.
Lisa Chua, Portfolio Manager, join Sandy Rattray and The CIO Agenda to discuss what lies ahead for emerging-market debt.
What Happened to Quant (Equity)?
The new year couldn’t come quickly enough for some quant strategies. A swathe of headlines pronounced 2020 a quantus annus horribilis for a host of reasons, from swashbuckling retail day traders to outdated historical trend models. As no stranger to quantitative investing ourselves, we investigate what really happened to quant in 2020 and whether 2021 may prove a change in fortunes.Ori Ben-Akiva, Director of Portfolio Management at Man Numeric, joins Sandy Rattray and The CIO Agenda to discuss the challenges quant (equity) strategies faced in 2020 and the factors that will drive their success.
Introducing The CIO Agenda
Launching April 2021, The CIO Agenda is about the challenges professional investors face.
Hosted by Sandy Rattray, Chief Investment Officer at Man Group and co-inventor of the VIX Index, he'll be interviewing guests on how they'd approach a particular investment problem and where professional investors might find opportunities for alpha.