May Performance and Allocation for June
Preferring to avoid high volatile period with significant downside risk, the allocation for June is 15% in REIT and 85% in Agg. The Performance in May is -3.98%, as we were holding mainly REIT and High Yield for that month. The model successfully avoided Equity and Commodity for May. Meanwhile, 60/40 portfolio is down 4.88% for May
April Performance and May Allocation
Our model delivered another positive monthly return: 0.49% for April, 2012. See previous post for allocation for April (48.8% ACWI, 18.2% GSCI and 33% REIT on 3/30/2012). The allocation for May preferring Public Real Estate (REIT) and High Yield Bonds (HY): 5.8% ACWI, 58.1% REIT and 36.1% HY
GS Monthly View – China. An Opportunity for the Reformers?
China. An Opportunity for the Reformers? In the past week there have been many important developments involving China, virtually all of which symbolize ? at least to me ? that the reformers are in the clear ascendancy in Beijing. But, all we read in Western media is about the Bo scandal and the Communist Party’s … Continue reading
Bloomberg – Investor Distrust of Chinese Listings Hits IPOs, Prices
Investor Distrust of Chinese Listings Hits IPOs, Prices By Fox Hu Apr 19, 2012 – Bloomberg Profit warnings, auditor disputes and delistings involving Chinese companies trading on foreign exchanges are fueling investor distrust, wiping out valuations and poisoning the market for new listings. The 180 Chinese firms that went public in New York, … Continue reading
How did people make money in China in the past 30 years?
It all started since 1978 the first reform – Deng Xiao Ping opens China. The first movers that made money in China are multinational companies and few private equity firms. Before that, everything is state owned and the whole economy is state planned. The idea of “shareholder” and “privatization” started to build. In 1990, the … Continue reading
The start of the second reform in China
WSJ Chinese Premier Blasts Banks Chinese Premier Wen Jiabao told a national audience on Tuesday that China’s state-controlled banks are a “monopoly” that must be broken up, in a blunt appeal for a shake-up of the creaky financial system of the world’s No. 2 economy. In an evening broadcast on state-run China National Radio, Mr. … Continue reading
March Performance Review and April Allocation
Our model returned 1.63% for March 2012. If you recall the allocation (see previous post) at the beginning of March – 33.8% ACWI, 18.6% GSCI and 47.6% REITs, the overweight to REITs and underweight to GSCI has positive contributions. The performance also benefited from zero allocation to fixed income. The model still takes risk-on for … Continue reading
Liquidity Timing
Can Hedge Funds Time Market Liquidity? ABSTRACT – Charles Cao and et al. “We explore a new dimension of hedge fund managers’ timing ability—their ability to time market liquidity—and examine whether fund managers can time liquidity by adjusting their portfolios’ market exposure as aggregate market liquidity conditions change. Using a large sample of equity-oriented hedge funds from 1994 to 2009, … Continue reading
Harvard’s Ferguson on China
A good interview of Harvard professor Neil Ferguson on China’s political change and growth prospects. Interestingly, he compares it to South Korea in 1977. Click here for the video
Video Reports – My friend James Xiong’s video interview
Have Correlations Made Your Holdings One Color? Higher correlations paradoxically have caused diversification–and investors’ tools to attain it–to be even more important than they were before. Click here for the link
STARisk 