The hottest Asset management Substack posts right now

And their main takeaways
Category
Top Finance Topics

Bullish or Bearish? Market Update

DeFi Education • 939 implied HN points • 05 Jul 24
🔮 Crypto Market Analysis Trading Strategies Asset management
  1. The current market has low liquidity, which makes it risky for traders with leveraged positions. This can lead to a lot of liquidations when prices change suddenly.
  2. Recently, there was a massive amount of crypto liquidations on July 4th, the largest since the FTX incident. This shows how volatile the market can be.
  3. The post offers a market update and a detailed overview of specific sectors for subscribers. It's designed to help them understand current trends and make informed decisions.

Catch Me If You Can

Net Interest • 15 implied HN points • 24 Jan 25
💰 Finance Investing Market Trends Asset management Economic Analysis Global Markets
  1. The US stock market has significantly outperformed Europe over the last 15 years, with US stocks providing much higher returns compared to European stocks.
  2. European companies lag behind in major tech innovation, lacking equivalents to successful US companies like Amazon and Google, which has contributed to their slower growth.
  3. Recently, there has been a shift in sentiment among investors towards Europe, with increased interest and consolidation in the asset management industry, indicating potential for future growth.

Nelnet Shows Some Skin

Mindset Value • 393 implied HN points • 09 Mar 23
💰 Finance Investments Valuation Asset management
  1. Nelnet's book value has grown consistently and it has never had a losing year, which is impressive.
  2. Nelnet is undervalued as its book value does not reflect the true value of its businesses and investments.
  3. Nelnet's investments in companies like ALLO, solar energy, and HUDL show potential for significant growth and increased value.
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The Distribution Layer

Lewis Enterprises • 235 implied HN points • 06 Jul 23
💰 Finance Investments Asset management Market structure Financial Services Retail Investors
  1. The future of alternative investments is undergoing significant changes in the market structure with emphasis on investment managers, allocators, and capital owners.
  2. Traditional asset managers are seeking growth by entering alternative investments but are facing challenges due to massive capital deployment impacting returns.
  3. There's a trend towards greater intermediation of capital allocation in the alternative investment landscape, leading to a more specialized distribution approach.

BlackRock’s Barbell

Net Interest • 13 implied HN points • 06 Dec 24
💰 Finance Investment Asset management Market Trends Economic Analysis Business strategy
  1. Warren Buffett believes that being both a businessman and an investor is beneficial. Learning from each role can help improve performance in the other.
  2. Many investment firms, like Schroders and Pimco, struggle when they focus too much on one area and lack diversification. These issues can hurt their profits and reputation.
  3. BlackRock, the largest asset manager, successfully mixes passive and alternative investments. They are moving into higher-margin areas to boost profitability and adapt to market changes.

How Banks (Zeros) Make Money

DeFi Education • 899 implied HN points • 12 Apr 22
💰 Finance Banking Investments Cryptocurrency Regulation Asset management Revenue streams
  1. Banks make money by accepting deposits and giving loans. They charge fees for services like managing assets and processing transactions.
  2. Decentralized finance (DeFi) is changing how finance works, allowing people to cut out banks and manage their money directly. This means banks might lose some of their income.
  3. Crypto and other digital methods are making it easier for people to manage their money and investments without needing traditional banks. This could change the banking industry a lot in the future.

People Have More Money Than Ever

Spilled Coffee • 32 implied HN points • 16 Oct 24
💰 Finance Personal Finance Consumer behavior Asset management Economic Trends Investment Strategies
  1. Many people have more money now than ever because wages have been rising faster than inflation for over a year. This means that they can buy more with their earnings.
  2. Homeowners are seeing their property values increase, while those looking to buy are facing more expensive housing costs. This shows the trade-off between rising asset values and affordability.
  3. Overall, both asset prices and wages are at all-time highs, which has led to a significant increase in net worth for Americans across all income levels, especially the bottom 50%.

Elevating Client Experience in the Commercial Real Estate Industry Requires More than Just Technology

PropTech Future • 137 implied HN points • 08 Mar 23
💼 Business Real Estate Technology Hospitality Asset management
  1. Technology is important, but not the only solution to elevate client experience in commercial real estate.
  2. Real estate owners and managers need to focus on creating a compelling reason for employees to return to offices.
  3. Investing in human-oriented initiatives and hospitality training can set new industry standards for client experience.

What You Can Learn From The Investment Committee Process

DeFi Education • 679 implied HN points • 22 Mar 22
💰 Finance Investment Private Equity Asset management Hedge Funds Venture Capital
  1. Having a clear investment process is important. Documenting what you do helps you improve and grow over time.
  2. Teamwork can enhance your investment decisions. Consider gathering a small group to discuss and evaluate investment ideas together.
  3. Monitoring your investments is crucial. Don't just set it and forget it; keep an eye on your assets and know when to sell or change your strategy.

Alfa Leak: What is Alpha?

DeFi Education • 679 implied HN points • 27 Jan 22
🔮 Crypto Investing Market Analysis Asset management Risk Assessment DeFi
  1. Alpha is about making more money than a standard benchmark like the S&P 500. If you earn more than this benchmark, you have positive alpha.
  2. Beta measures how much an investment's price changes compared to a benchmark. A beta of 1 means it moves the same way as the benchmark, while higher or lower numbers show more volatility.
  3. In the crypto world, it's important to compare your gains against Bitcoin and understand how cryptocurrencies are becoming more similar to stocks over time. This can affect how much risk you take.

Depreciation explained

Concepts of Finance 🧠 • 219 implied HN points • 30 Mar 23
💰 Finance Personal Finance Financial Education Investment Strategies Asset management
  1. Depreciation is when things lose their value over time, like cars and electronics. This impacts how much you could sell them for later.
  2. For businesses, depreciation helps account for the decrease in value of their assets, matching costs with how much money those assets help make over time.
  3. Knowing how quickly something depreciates can guide your buying decisions. Some items, like luxury goods, hold their value better than others.

Top Questions ahead of Eagle Alpha’s Next Level Alternative Data Conference

The Data Score • 39 implied HN points • 16 Jan 24
💼 Business Alternative Data Generative AI Asset management
  1. The future of the alternative data industry and how smart asset managers are preparing for it is a key theme in the upcoming conference.
  2. The use of generative AI in financial markets, its applications, constraints, and implications are important topics to be explored.
  3. Corporate data strategy including use cases, monetization challenges, and blockers will be a focal point of discussion at the conference.

Get Woke, Go Broke: Vanguard Ditches ESG Investing

Anxiety Addiction & Ascension • 39 implied HN points • 06 Mar 23
💰 Finance Corporate Governance Financial Sector Asset management
  1. Vanguard, the world's second-largest asset management firm, with $8 trillion AUM, has withdrawn from ESG, which is a significant move.
  2. There are signs of people waking up and pushing back against social engineering, like the ESG framework, showing a recalibration in public perception.
  3. Major financial institutions, like Vanguard and JPMorgan Chase, distancing themselves from ESG indicates cracks in the system and growing public awareness, potentially due to popular sentiment.

Get Your Retirement Money Out of The System

Anxiety Addiction & Ascension • 39 implied HN points • 05 Dec 22
💰 Finance Retirement Investing Asset management ESG Wealth Management
  1. Saving for retirement is essential, but being forced by the government to put money into certain funds can be questionable and may not align with individual financial goals.
  2. Asset management firms play a significant role in managing retirement funds, but their emphasis on ESG and socially responsible investing may not always align with traditional fiduciary responsibilities.
  3. ESG (Environmental, Social, and Governance) criteria can significantly influence how money managers handle investments, potentially prioritizing social and environmental factors over pure financial gains.

Tony Robbins’ Favorite Asset Class

Net Interest • 18 implied HN points • 01 Mar 24
💰 Finance Investing Wealth Management Private Equity Asset management Financial Education
  1. Tony Robbins has invested in over 100 privately held businesses with combined sales over $7 billion, leveraging his brand to immense success.
  2. Robbins emphasized the concept of 'GP stakes', where investors buy minority positions in asset management firms, such as what he did with Blue Owl through CAZ Investments.
  3. The GP stakes business model focuses on buying into asset management firms and can be highly lucrative, providing exposure to various private asset management firms.

New York State of Mind

Net Interest • 13 implied HN points • 02 Feb 24
💰 Finance Banking Regulation Market Analysis Asset management
  1. The Federal Reserve's oversight of banks is divided by size, with different divisions supervising banks of varying asset thresholds.
  2. Regulators reacted swiftly to New York Community Bancorp surpassing the $100 billion threshold by implementing capital preservation measures.
  3. New York Community Bancorp's stock fell significantly after taking actions to strengthen its balance sheet, raising concerns and prompting discussions about reviving a retired series on banking crises.

Past performance is no guarantee of future performance... but is anyone listening?

Musings on Markets • 0 implied HN points • 19 Sep 10
💰 Finance Investing Market Trends Asset management Risk Assessment Economic Indicators
  1. Investors often ignore the warning that past performance doesn't predict future success, and many still chase after funds that have done well recently.
  2. Successful investing usually depends more on how assets are allocated rather than just picking individual stocks.
  3. Momentum investing can be risky, as knowing when to sell is just as important, if not more so, than when to buy.

The dangers of relative valuation

Musings on Markets • 0 implied HN points • 27 Sep 09
💰 Finance Valuation Investing Market Analysis Asset management Valuation Investment Market Analysis Financial risk Equity
  1. Relative valuation can be risky because if one company is valued poorly, it can affect the valuations of other companies that are based on it. This is especially true for big companies like Facebook.
  2. Using relative valuation without careful analysis can lead to mistakes and potentially create market bubbles. Just looking at averages can be misleading.
  3. A better approach to relative valuation is to consider differences between companies and analyze the data thoroughly. This way, it can provide useful insights rather than just being a lazy shortcut.

Jekyll and Hyde revisited!

Musings on Markets • 0 implied HN points • 25 Nov 08
💰 Finance Investments Market Analysis Banking Economic Policy Asset management
  1. Citi's plan to split their assets into good and bad parts is interesting. This could lead to other companies doing the same, letting investors trade their good and bad parts separately.
  2. It's easy to see how the good part would be valued higher by investors. The challenge is figuring out how to make the bad part appealing, since it's often not profitable.
  3. If the government takes on the bad assets, it should demand something valuable in return, like a stake in the good part, to make sure the deal is fair.

Inflation, deflation and investing

Musings on Markets • 0 implied HN points • 14 Oct 10
💰 Finance Investing Economics Inflation Deflation Portfolio Investing Economics Market Trends Taxation Asset management
  1. Economists disagree on whether we are heading into inflation or deflation, but both have big impacts on investing. It's important to understand how these economic changes can affect your portfolio.
  2. Inflation can hurt stock values because it increases costs and taxes while the ability to raise prices might not keep up. Companies with strong brands can handle inflation better than others.
  3. If you expect high inflation, consider investing in real assets or companies that can pass costs to customers. For deflation, focus more on financial assets and companies selling essential products.

All assets are illiquid

Musings on Markets • 0 implied HN points • 21 Dec 10
💰 Finance Investing Markets Economic Theory Asset management Risk Assessment Market Liquidity Asset Pricing Investor behavior Financial Theory
  1. All assets are considered illiquid, meaning they can't always be sold quickly at their current price without costs involved. This changes how we understand and measure the value of assets.
  2. Illiquidity varies between different asset classes, like real estate being less liquid compared to stocks and bonds. Some stocks are also more liquid based on their size and price.
  3. Investors care about liquidity because it affects asset prices and returns. Illiquid assets tend to have lower prices and higher expected returns, especially during market crises.

Asset allocation for illiquid markets

Musings on Markets • 0 implied HN points • 24 Dec 10
💰 Finance Investing Asset management Market Theory Portfolio strategy Risk Assessment
  1. Illiquidity affects all stocks, not just a few, which can lead to challenges in investment decisions. It's important to understand that even seemingly liquid markets can experience periods of illiquidity.
  2. When deciding how to allocate assets, it's crucial to consider the potential underestimation of risks associated with illiquid assets. Ignoring this can result in poor investment choices.
  3. Investors should tailor their asset allocation based on their need for liquidity. Those who prefer more liquidity might focus on large, stable assets, while others might benefit from investing in less liquid ones.

Asset selection & Valuation in Illiquid Markets

Musings on Markets • 0 implied HN points • 26 Dec 10
💰 Finance Valuation Asset management Investment strategy Market Analysis Risk Assessment Valuation Investment Asset management Market Analysis Risk Assessment
  1. When picking assets, consider how liquid they are. More liquid assets are often a better choice for those needing quick access to cash.
  2. To evaluate illiquid assets, you can adjust their value down by using an 'illiquidity discount' or increase their risk by raising the discount rate.
  3. Using relative valuation involves screening for both cheap stocks and those that are more liquid, helping avoid investments in hard-to-sell assets.

Investment consultants are (quietly) doing great

Fund Marketer • 0 implied HN points • 01 May 24
💰 Finance Investment Consulting Market Trends Asset management Economic History
  1. Investment consultants are becoming very influential in the market, with 85% of large investors relying on them for manager selection. This shows they play a key role in guiding investment decisions.
  2. The top twenty investment consultants control a large portion of the industry, making it easier for them to shape which managers are chosen by clients. This concentration means fewer choices for investors.
  3. Investment consultants warn that trendy investment options, like private assets, can be risky and often lead to disappointing results for late investors. It's important to be cautious and think long-term.

Investment research is not as valuable as it used to be

Fund Marketer • 0 implied HN points • 18 Apr 24
💰 Finance Investment Market Trends Asset management Research Analysis
  1. Investment research is becoming less useful because many managers found alternatives, like news or blogs, to get the information they need.
  2. While regulations may allow investment research to be bundled again, the actual spending on it has dropped significantly, showing that its value has decreased.
  3. Market forces can lead to changes like bundling or unbundling, impacting sectors like renewable energy, where clearer reporting standards can increase investment.

Is the European ETF market competitive enough?

Fund Marketer • 0 implied HN points • 28 Feb 24
💰 Finance Investment Market Analysis Asset management Regulation Economics
  1. The European ETF market is heavily dominated by a few large players, with JP Morgan capturing a significant share. This raises concerns about the level of competition available for smaller ETF issuers.
  2. Larger firms often copy niche products from smaller issuers, making it hard for the latter to succeed. This behavior can limit innovation in the ETF market.
  3. Investment consultants prefer funds that are just above certain asset thresholds, affecting how funds are shortlisted and their potential inflows. Being over a $500 million mark can lead to more investment opportunities.

Myth 5.1: If you don't believe in forever, you cannot do a DCF

Musings on Markets • 0 implied HN points • 30 Nov 16
💰 Finance Valuation Investment Market Analysis Financial Models Asset management
  1. You don't need to believe cash flows last forever to do a discounted cash flow (DCF) analysis. There are ways to estimate cash flows that make sense even if the asset doesn't last indefinitely.
  2. Terminal value is very important in DCF calculations, so you can use methods like annuities or liquidation value to estimate it. These options can provide a realistic view of an asset's worth without assuming it will last forever.
  3. One common mistake is using market multiples for terminal value, which can skew the true value of a business. It's better to focus on cash flows and intrinsic value rather than just market pricing.

What Good is a Podcast Without Great Audio Quality? Yes, We Know—It's On Us.

James Ledbetter's FIN • 0 implied HN points • 26 Nov 24
💰 Finance Investing Market Trends Asset management
  1. Investing in whiskey casks is becoming popular, especially for those looking for alternative assets. It's not just for whiskey lovers; even non-drinkers find it appealing.
  2. The global whiskey market is huge, worth about $70 billion, and it's expected to grow even more. Many investors see it as a safe and tangible investment option.
  3. CaskX helps people choose which whiskey brands to invest in by looking for those with potential for high value. They believe this kind of investment can be as valuable as gold.

The Unaddressed Opportunity in Emerging Managers

Equal Ventures • 0 implied HN points • 10 Nov 22
💼 Business Venture Capital Asset management Entrepreneurship Investing Funding
  1. Emerging managers in the venture industry show potential for high returns despite receiving a smaller share of capital allocation.
  2. Diversity in emerging manager profiles and strong alignment with LP incentives make them attractive investments.
  3. The slow change in LP-GP dynamics, the challenge of identifying new managers, and the dominance of established firms hinder the growth of emerging managers, limiting diversity and innovation in the asset class.