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Faucet to Finance
The story of modern finance starts from a faucet. The Navier–Stokes equations is considered to be the first step to understand the elusive phenomenon of turbulence. The Clay Mathematics Institute in May 2000 made this problem one of its seven Millennium Prize problems in mathematics. There is a US$1,000,000 prize to the first person providing a solution for a…
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Fees Waterfall Effect
Now that Nasdaq 100 is nearing a 50% drawdown, Asset Owner and Investors should question the impact of fees on their portfolios if Nasdaq 100 decides to go sideways like in 2000-2010. All the annual range of fees from 0.1% to 10.92% damage and can decimate long term wealth! Interest rate risk, currency risk, inflation…
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BITW underperforms BTC by 121%!
If you know Crypto, you probably know BITW, which is the fastest-growing ETF today in the crypto space. With nearly 400 million USD invested in the product, you the investor or asset owner [Who’s already invested or plans to invest] may think that there should be something awesome here, like product innovation, alternative asset awareness…
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Why A New Smart Beta?
What is Smart Beta? And why do we need it? Smart Beta is a method to rebuild a portfolio with a weighting scheme different from the market capitalized weightage method. The weighting scheme can be based on fundamental factors different from size e.g. revenue, economic value etc. Most popular benchmarks today are built using the…
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Noise
Einstein famously said, “A new type of thinking is essential if mankind is to survive and move towards higher levels”. We need to rethink Psychology if we have to give the world better tools for judgment. Because Psychology – the scientific study of mind and behavior – has stopped relating to Science. As hyperbolic as…
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E&R U.S. 500 Beats S&P 500 by 8.33%
Exceptional & Rich U.S. 500 [E&R U.S. 500] is based on an open method that is designed to beat [Outperform] the S&P 500 without concentrating on a few stocks. Concentration in the S&P 500 not only creates risk but also forces the overall market into a long recovery period. The E&R U.S. 500 model started…
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Investment Management Fintech 101
Venture capital companies have to work through a lot of confusion when it comes to allocating capital to Investment Management Fintechs. It’s natural because Active Investment Management itself is facing an upheaval when it comes to fees, increases in compliance, financial theory redundancies [1], and foremost, the lack of Alpha. A Venture firm can’t be…
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Warren, SPY, Machines and Concentration Risk
Concentration is the most undermined risk working against long-term wealth generation. The reason you have not heard about it is that both active and passive investment management indulge in concentrated portfolios and don’t think there is anything wrong with the approach. In addition, human active asset managers’ skill of stock selection is rare, and hard…
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AlphaBlock Disrupts Global Financial Investment Industry with the Launch of Pay for Alpha
AlphaBlock Technologies Inc. (“AlphaBlock”) announces the launch of Pay for Alpha, the financial investment industry’s first fully automated pay for performance investment management solution. The solution is disrupting the investment services model with two significant innovations. One, by transforming the traditional financial investment fee model for the first time to pay for performance, and two, with…
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Tulips, Manias And Informational Realms
Tulip Mania The 17th century was the period during the Dutch Golden Age, when the Dutch become an economic and military power. The Dutch controlled the seas and had a monopoly on spice trade. The speculative bubble in the prices of a Tulip bulb, a desired commodity, caused a mania, which has represented everything speculative,…