Jan 13, 2023

BofA Reaps Benefits of Interest-Rate Hikes, Trading Volatility Imran Khan Dissolving Regional Assemblies to Push Pakistan Polls Wall Street's New ESG Money-Maker Promises Nature Conservation — With a Catch Chip-Stock Rally Flies in Face of Weakening Tech Outlook Ukraine Latest: Italy Offers Use of Logistics, Ports to Kyiv BlackRock Gets $146 Billion of Fresh Cash After Market Rout UK Homebuilder Stocks Finally Get Some Relief U.S. futures fall as traders study big bank earnings Quant Fund That Once Lost 92% of Assets Is Making a Big Comeback Fed’s Bostic Leans Toward Smaller Rate Hike After Inflation Slowdown Euro Rally May Have More Room to Run as ECB Takes Hawkish Baton From Fed Bulgaria Charges Four People in Probe Into Crypto Lender Nexo Goldman’s Wealth CIO Says US Stocks Could Rally Despite Recession Biden Backs Nevada Lithium Mine With $700 Million Loan Offer LME Data-Entry Error Showed Copper Down 77% in Latest Glitch Blackstone’s Gray Predicts UK to Beat US for Investment in 2023 Taylor Wimpey’s Supply Warning Caps Grim Week for UK Builders Union Lawyer’s Fight Against Tegna Deal Helps Its Corporate Foes Polish Parliament Takes First Step to Back Bill Accessing EU Aid How pay transparency may affect your job search or raise 50 guests or less: Couples opt for micro-weddings amid inflation It's time for retirement investors to act their age: Dale Jackson Consumer insolvencies rose 16 per cent year over year in November 3 risk-free ways to boost your net worth in 2023: Dale Jackson How to start the new year off on the right financial foot How to take stock of your subscriptions Canadians focused on repaying debt in 2023: CIBC survey Retirement: 6 ways to make extra money 81% of Canadians are worried about a recession in 2023: survey High interest rates breathe new life into TFSA ​Bankruptcy: Experts explain how to rebuild credit How to pay down debt quickly according to the experts Experts share tips for young Canadians finding themselves in debt for the first time 4 key dates for investors to mark in their 2023 calendars Inflation: From missing family time to making food, Canadians are cutting back Market misery could lay groundwork for a bright 2023: Dale Jackson Budgeting for the first time amid soaring inflation? Here are some tips Consumer debt tops $2.36 trillion in third quarter, up 7.3% from last year UK Homebuilder Stocks Finally Get Some Relief BYD Challenges Tesla for Global Electric Vehicle Sales Supremacy Taylor Wimpey’s Supply Warning Caps Grim Week for UK Builders Sweden’s Inflation Rate Tops 10% for the First Time Since 1991 China Posts Record Trade Surplus for 2022 Despite Slowing Demand Bank of Korea Hikes Key Rate as Tightening Cycle Winds Down Sweden Erases Much of the Pandemic Gain in Housing Market Rout Distressed Japanese Hotelier’s Bonds Show Greater Default Risk Hong Kong Sees Record Mortgage Applications From Chinese Buyers LendingClub to Cut 14% of Workers, Take Charges of $5.7 Million KB Home Sends Warning for Builders’ Stocks With Orders Miss OFSI launches consultations on mortgage rules, proposes additions Bank Watchdog Weighs Limiting Canadian Firms’ Riskier Mortgages Housing-Market Funk Has Lumber Traders Expecting Rally to Fizzle Mortgage Rates Fall to 6.33% in Biggest Drop Since Early December New Mortgage Trap Opens in Poland as Banks Lock in Peak Rates Miami Overtakes Phoenix as US Inflation Hotspot in December Minibubbles in US Banking Are Popping With Costs in the Billions French Riviera Realtors Investigated Over Sanctions Compliance Goldman Lost $1.2 Billion in Just Nine Months in Newest Division JPMorgan falls as net interest income outlook misses estimates JPMorgan, Biggest US Banks Slip With Wobbly Economic Outlook BofA Reaps Benefits of Interest-Rate Hikes, Trading Volatility Trump Firm’s Criminal Punishment Carries Threats Beyond Sentence Citi Traders Reap Record as Bank Girds for Tougher Times Wall Street's New ESG Money-Maker Promises Nature Conservation — With a Catch Tesla slashes prices in U.S. to qualify models for tax credit Chip-Stock Rally Flies in Face of Weakening Tech Outlook Ukraine Latest: Italy Offers Use of Logistics, Ports to Kyiv BlackRock Gets $146 Billion of Fresh Cash After Market Rout UK Homebuilder Stocks Finally Get Some Relief Delta Forecasts First-Quarter Profit Below Wall Street Estimates Quant Fund That Once Lost 92% of Assets Is Making a Big Comeback CIBC taps Hountalas to succeed Dottori-Attanasio as Canada chief US Denies Bill Hwang’s Claim That He Was Misled by Prosecutors Corus Entertainment reports Q1 profit and revenue down from year ago Goldman and JPMorgan Diverge on Response to Richest Russian’s Sanctions Bulgaria Charges Four People in Probe Into Crypto Lender Nexo Ukraine Latest: Italy Offers Use of Logistics, Ports to Kyiv Goldman and JPMorgan Diverge on Response to Richest Russian’s Sanctions Biden Backs Nevada Lithium Mine With $700 Million Loan Offer LME Data-Entry Error Showed Copper Down 77% in Latest Glitch BYD Challenges Tesla for Global Electric Vehicle Sales Supremacy Huayou Cobalt Picks Citic for Up to $1 Billion Zurich GDR Sale, Sources Say Where Will Europe Get Its Diesel From in 23 Days’ Time? Russia Is Increasingly Using Its Own Oil Tankers to Beat EU Sanctions Brexit Customs Deal Close With UK-EU Talks Poised to Intensify EU Eyes Easing Curbs on State Aid for Clean Tech in Reply to US Nigeria LNG Scraps Shipments After Vandals Damage Pipelines Balloon Surveillance Startup World View Nears Merger With Leo SPAC Brazil’s Top Hedge Funds Are All Avoiding One Thing: Brazil UK’s Drax Fined £6.1 Million for Charging Extreme Energy Prices Oil set for weekly gain on China optimism, brighter U.S. outlook Czech Billionaire Bought Russian Oligarch’s Paris Home in 2020 for €21.5 Million Chinese Oil Demand Seen Hitting Record on Covid Zero Pivot A Biotech Startup Is Boosting Bee Endurance with Supplements TotalEnergies, Swiss Trader MET Book New LNG Capacity in Germany ​Canadian home prices remain well above pre-pandemic levels: Royal LePage BoC's forward guidance strategy 'backfired': Chief economist BoC to lose billions over next few years, posing communications challenge: report U.S. inflation cools again, putting Fed on track to downshift The Daily Chase: U.S. inflation cools; Aritzia posts record earnings Air travel across U.S. thrown into chaos after computer outage The Daily Chase: Markets show signs of optimism; Smith haggled over Home Capital World Bank warns of a global recession The Daily Chase: Central bankers discuss economic risks; First Quantum makes headway in Panama Trudeau, Biden have bilateral meeting as North American summit begins in earnest Bank CEOs say higher credit requirements manageable following regulator boost The Daily Chase: Canaccord management push for $1.13B takeover; Three Amigos Summit to begin Homebuyers hope 'patience pays off' as prices drop, recession predictions loom TSX recap: Index closes 1.58% higher amid broad-based gains Canada labour market crushes forecasts, sending loonie higher Surprise jobs gain increases the odds of a Bank of Canada rate hike: experts A look at unemployment rates across provinces and major cities The Daily Chase: Awaiting Canadian jobs data; Markets point to flat open Flexible workplaces with work-life balance 'win-win' for workers, employers: study Imran Khan Dissolving Regional Assemblies to Push Pakistan Polls Ukraine Latest: Italy Offers Use of Logistics, Ports to Kyiv Germany Closes In on a Decision to Send Leopard Tanks to Ukraine Biden Backs Nevada Lithium Mine With $700 Million Loan Offer BYD Challenges Tesla for Global Electric Vehicle Sales Supremacy Union Lawyer’s Fight Against Tegna Deal Helps Its Corporate Foes UK Closes In on Deal to End Rail Strikes Crippling Commuters Russia Claims Donbas Town But Ukraine Says It’s in Control Campaign to Renew US Spy Powers Faces Bitter Battle in Congress Brazil’s Top Hedge Funds Are All Avoiding One Thing: Brazil US Supreme Court Waits, and Waits Some More, to Issue First Opinion ‘Doomsday Clocks’ Likely Needed Before Congress Hikes Debt Limit Railway Talks With China Terminated as Uganda Turns to Turkey Lula's Ties With Military Are Strained by Crackdown on Rioters Turkey Summons Swedish Envoy, Warns Over NATO Membership Bid Ethiopia Eurobond Yields Plunge on Tigray Peace Deal Progress Japan Seeks Biden Endorsement of Security Overhaul at Summit Malaysia Deputy PM Puts Faith in His Party Over Leadership Vote Japan Indicts Suspected Killer of Former Premier Abe Chip-Stock Rally Flies in Face of Weakening Tech Outlook Quant Fund That Once Lost 92% of Assets Is Making a Big Comeback Bulgaria Charges Four People in Probe Into Crypto Lender Nexo BYD Challenges Tesla for Global Electric Vehicle Sales Supremacy Union Lawyer’s Fight Against Tegna Deal Helps Its Corporate Foes Buttigieg’s Post-Biden Ambitions Dented by Air-Travel Meltdown Ionos, Euro Group Set to Reopen Europe’s Moribund IPO Market Campaign to Renew US Spy Powers Faces Bitter Battle in Congress Huayou Cobalt Picks Citic for Up to $1 Billion Zurich GDR Sale, Sources Say YouTube Shorts May Fall Down in UK Clash Over Brand Name EU Eyes Easing Curbs on State Aid for Clean Tech in Reply to US China State-Owned Airlines to Delist in New York, Joining Exodus Balloon Surveillance Startup World View Nears Merger With Leo SPAC Gemini and Genesis Battle It Out (Podcast) Jawbone Co-Founder’s Health Startup Is Sued by Investor Alleging Fraud German Google Data Probe Targets Heart Of Digital Dominance Vodafone Said to Plan Hundreds of Job Cuts in Cost-Cutting Drive A Gambling Tycoon and Two British Lords Team Up for £10 Billion Crypto Lawsuit Alibaba, Tencent Fall After Report Beijing Taking Golden Shares The U.S. Fed is failing in four ways: Mohamed A. El-Erian Apple, JPMorgan turn to pay now grow later Remote Working Boom Is Huge for College Towns Like Knoxville Walmart flashes a warning sign to the entire consumer economy: Andrea Felsted Millennials are finally spending like grown-ups Dismal U.S. GDP report raises the odds of recession this year: Gary Shilling Musk is wrong for Twitter even if deal math works out Chocolate bunnies can teach us to save our food supply The Fed has made a U.S. recession inevitable America's oil reserve weapon risks misfiring Four-day workweeks can burn you out U.S. Fed expects a soft landing. Don't count on it Markets are pushing Fed into developing-economy territory Commodity traders go from bonanza to bailout plea Putin's war shows West must clean up dirty money Salary transparency is good for everyone Microsoft's US$69B Activision deal could be a blunder What if the oil market bulls are wrong and this lonely bear is right? Canada's trucker protest may spread from Ottawa to U.S. Inside the Hottest Fashion Chain in the US Samsung Fund Unit Considers More Hong Kong Crypto Products After ETF JPMorgan Health Confab Returns Soggy and Subdued With Few Deals Cathie Wood Key Fund Sees Exact Sciences Take Top Spot From Zoom Dip Buyers Help Pare Record Bitcoin Discount at Grayscale Trust Biggest Junk-Bond ETF Draws Most Cash Since 2020 as Debt Rallies Biopharma Giants Gather at JPMorgan Conference After ‘Depressing’ Year Hong Kong Stresses Pro-Crypto Stance as Industry Reels Women Rarely Manage ETFs. Meet the Team Looking to Change That Nomura Says BOJ May Further Reduce Frequency of ETF Purchases Cooperman Tells CNBC He Doesn’t See A Bull Market Anytime Soon BlackRock Nears Canada ETF Milestone After Tumultuous Year JPMorgan’s Smash-Hit ‘Income’ ETF Seen Battling Off Bond Market 23 ETFs for 2023 Cathie Wood Buys Tesla Stock Amid Plunge After Deliveries Miss Pimco Ranks as 2022’s Biggest Loser in $6.5 Trillion ETF Market Valkyrie Unveils Proposal for Grayscale’s Troubled Bitcoin Trust (GBTC) Cathie Wood’s Grim 2022 Is Almost Over. Next Year Also Looks Bad SBF sent back to Bahamian jail after catching lawyer off guard with U.S. extradition plan Disney's Iger returns to reckon with his own 15-year Legacy Women making small gains, but still troublingly under-represented in the C-suite Gerry Schwartz to step down as CEO at Onex, Bobby Le Blanc named next CEO Dominic Barton on Canada-China relations, future at Rio Tinto 'We’re serving Canadians better' following the pandemic: McKesson Canada CEO Rebecca McKillican World's richest family loses US$11.4B in Walmart rout 'Fine balance': Rania Llewellyn on fitting her long-term inclusion goals into Laurentian's revamp First female bank CEO in Canada leads with younger self in mind ​Company holiday parties are making a comeback, but many employers have a plan B Elon Musk and Jeff Bezos now worth almost half a trillion dollars Jane Fraser has a plan to remake Citigroup while tormenting rivals ‘Forever changed’: CEOs are dooming business travel — maybe for good National Bank names Laurent Ferreira CEO, succeeding Vachon The remote-work czar is the new shortcut to the C-Suite Olympics boss aims to put 'most-followed' Tokyo games on track Wellness resorts eye long COVID treatments as new moneymaker Ghosn accomplice says he 'deeply regrets' helping him escape Gates divorce speeds divergence of separate investing goals Justina Lee, Bloomberg News , (Bloomberg) -- After enduring a 92% collapse in assets during the quant industry’s dark days, a onetime poster child for everything wrong with systematic investing is mounting a comeback. And the manager of the once-$16 billion equity fund has a message for Wall Street peers hooked on the traditional strategies it once embraced: Ditch the old-school playbook. On the back of inflation-driven market turmoil and newfangled tools like alternative data, the flagship vehicle for London-based Jupiter Fund Management is up about 29% in the last two years. It joins the swelling ranks of firms enjoying a big revival in factor investing, which picks stocks based on characteristics like how cheap they look or how their prices have moved. But even as several well-established trades like value and quality rally anew, Jupiter’s quants reckon the days are numbered for peers who simply rely on the basic tenets of an allocation style that were largely forged decades ago, before the data deluge and computing advances of this era. “If there’s one constant, it’s the cyclicality of those factors,” said Amadeo Alentorn, who took over as the lead manager of Jupiter Merian Global Equity Absolute Return Fund, or GEAR, in early 2022. “Proprietary factors, not generic factors, can help you remove a lot of that.” The 44-year-old computational finance Ph.D. says factor investing has simply become too crowded and volatile, echoing a long-standing critique that was amplified during the so-called quant winter. It’s a lesson Jupiter learned the hard way, when assets in GEAR dropped more than 90% in about two years through to late 2020 — a period when Big Tech dominated the stock market and systematic strategies making more dispersed bets suffered. Back then, GEAR was more focused on fundamental factors, but now it can cut its factor weightings significantly depending on prevailing conditions. Value, for instance, can be as little as 2% of the fund, Alentorn said. That compares to 40% when the models were first built. Meanwhile, to capture forces missed by traditional factors, the team, which oversees $6 billion overall, has added new inputs based on research that started in 2019. These include the trading patterns of corporate directors, intel from earnings transcripts and changes in environmental, social and governance ratings. A signal that looks at fund flows, for instance, is intended to find stocks benefiting from hot investment trends regardless of rhyme or reason. Those are nothing new in the systematic world, and their effectiveness can still decay over time thanks to crowding. Critics also argue they’re more likely to be false positives that lose their power in the long haul. The GEAR fund, which now oversees $1.5 billion after drawing inflows last quarter, is far from alone in being buoyed by the factor comeback. The AQR Equity Market Neutral Fund jumped 27% in 2022 in its best year ever. The Vanguard equivalent surged 13% after gaining 23% in 2021. Read more: Quant Factor Trades Roar Back in 2022’s Inflation-Crushed Market Still, the tweaks to Jupiter’s flagship may be showing their potential. Gains for most in the factor industry largely coincided with rising bond yields last year, but have slowed as markets contemplate another shift in the cycle with inflation showing signs of peaking. GEAR has been outperforming peers over the past two months. These new signals “tend to be shorter-term,” said Alentorn, who has been working on these models since 2005. “As we have seen, it’s not easy to exploit factors consistently, unless you really have a very long time horizon.”  The shift away from fundamentals is a significant step for Jupiter and GEAR. Originally launched in 2009 at Old Mutual Ltd., the fund historically followed traditional factors based on decades of academic work arguing certain stock characteristics always prevail in the long run. That was still working in the first half of the last decade, helping GEAR become a juggernaut. But when cheap money abounded and Big Tech ruled in the three years through 2020, the fund lost 14% as its models bet on all the wrong horses. GEAR went from peak assets of $16 billion in July 2018 to a low of $1.3 billion in 2020. As fees from the fund dwindled, its original home — Merian Global Investors, a buyout venture from Old Mutual — was sold to Jupiter in 2020. Alentorn’s predecessor, Ian Heslop, later moved to an advisory role. Alentorn is optimistic that more gains lie ahead — as long as the market doesn’t return to the obsession with big-tech stocks that peaked with the pandemic. “How markets wrestle with inflation expectations, with potential recession, now obviously with Covid being back in the news in China — all of those things should be good for uncertainty,” he said. “This is a great environment for us.”  --With assistance from Loukia Gyftopoulou. ©2023 Bloomberg L.P.