Tag Archives: Risk


DITMo: Eavesdropping on an Adviser Meeting at Starbucks

by Peter J. de Marigny Statistical Mistakes Advisers Tell Clients  I was sitting at a table waiting for my appointment to show up at a local Starbucks when I overheard a financial adviser speaking to a client.  The colored chart printouts for asset allocation relative to the client’s investment horizon, liquidity requirements and risk tolerance filtered down to representative investments […]

Social Engineering: The Human Factor to Hedge Fund Hacks

The following article was written by Mark Coriaty, Chief Strategy Officer for Eze Castle Integration, and originally published as part of Opalesque’s ‘Other Voices’.  As financial firms become increasingly interconnected and globalized, their dependence on cyberspace has skyrocketed. While this amplified reliance on the infobahn has accelerated productivity and growth, it has also exposed firms to larger risks, such as […]

DITMo: The Biggest Risk – Question To Bill Gross

  Just before the Brexit vote, Bloomberg invited fixed income subscribers to their sponsored Fixed Income Summit in Los Angeles where former PIMCO / current JANUS legendary bond magnate Bill Gross was interviewed on stage for about an hour.  Below is a link to the Q&A with Bill Gross.  None believed that Brexit posed a systematic risk and there were […]

DITMo: Why Risk Parity Hedge Funds are Return Parity Vehicles

  As hedge funds increasingly employ new approaches to asset allocation there has been a rise in the use of Risk Parity funds.  The vulnerability of Risk Parity funds is that they allocate by risk rather than by value. That is actually a bet on whether equities will outperform the return of additional risk adjusted asset class allocations utilizing leverage. […]

DITMo: PRICING AN ASSET BY RISK: CNBC Spot On Student Housing

As an asset manager having worked in almost every asset class from venture writing pitch books for securities offerings; to capital markets trading – equity, bonds and derivatives; to alternative classes such as private equity, hedge funds and real estate, it is easy to observe the interdependence and adverse consequences of government intervention in market pricing. The cause of most […]

SEC Issues Risk Alert on Outsourced CCOs

November 10, 2015 Dear Friends, Yesterday, the SEC issued a Risk Alert outlining observations regarding examinations of SEC registered investment advisers and investment companies that outsource their Chief Compliance Officer (“CCO”) role to unaffiliated third parties. Specifically the SEC found: Communication: Frequent and in-person communication with employees (as opposed to impersonal emails only and/or pre-defined checklists) resulted in fewer inconsistencies between […]

FINRA Cybersecurity Report

February 12, 2015 Dear Friends, FINRA released a report on cybersecurity practices, outlining the results from its 2014 cybersecurity sweep targeting high-frequency traders, independent dealers, large investment banks, clearing firms, and online brokerages. The report identifies principles and effective practices that all firms should consider, including the importance of: Sound Cybersecurity Governance, with Strong Leadership; Cybersecurity Risk Assessments; Development, Implementation, […]

SEC Releases Risk Alert on Cybersecurity

February 3, 2015 Dear Friends, Today, the SEC released a Risk Alert outlining its findings resulting from examinations of over 100 investment advisers and broker-dealers, specific to cybersecurity governance. The majority of the firms examined: Have adopted written information security policies; Conduct periodic risk assessments on a firm-wide basis to identify cybersecurity threats; Have been the subject of a cyber-related […]

SEC Chair Announces New Initiatives

December 12, 2014 Dear Friends, SEC Chair Mary Jo White announced that the SEC staff are developing recommendations for a set of “proactive initiatives” covering three core areas:       Data Reporting Standardized Reporting for Derivatives Enhanced Data Collection on Separately Managed Accounts Reporting of Securities Lending by Funds       Transition Planning and Stress Testing Requirement for Investment Advisers to Develop […]

Identifying Hedge Fund Risk is Risky Business

We received an interesting question from one of our members earlier this week: “I was wondering if someone could give me an idea of where hedge funds are on the totem pole as far as risk with intangible investments. My guess is that they rank with growth mutual funds and are less risky than stocks but I would like a […]