Emerging markets have been the surprise disappointment of 2013. What happened in the first half of 2013 was a remarkable divergence between emerging markets and the US Dow Jones Index. Most emerging markets lagged the Dow by more than 20%; rarely has asset allocation between mature and emerging markets mattered quite so much. Few people […]
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Tag Archives: Gaming
Universal bank model challenged by global divergence in bank regulation
May 27, 2013 
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Synopsis: Bank regulation appears to be diverging globally, with doubts that Basel will provide a reliable and consistent basis for international co-operation on bail-ins involving depositors. The flexibility to change VaR models, re-classify financial assets and adjust risk weights is driving regulators to set rules that cannot be gamed away by banks. This will involve […]
Continue readingGaming monthy returns – perverse hedge fund incentives
October 27, 2011 0 Comments
Why are so many hedge funds struggling this year? Volatile markets should help active traders, and this year’s rollercoaster has given ample opportunity to demonstrate defensive skills. Yet, many hedge funds are doing little better in 2011 than their conventional long only counterparts. Does this reflect unusual market conditions, or might the key to the […]
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Behavioural Edge 