Download PDF Introduction In this fourth episode of the Backtesting Series, we will get into Portfolio Construction & Portfolio Optimization processes with a deep focus on MVO. If you haven’t already, we recommend reading the first three episodes before proceeding with this article. Please note that the series will include Read more…
Download PDF Introduction Behavioral finance challenges traditional assumptions of rational investor decision-making as behavioral biases systematically influence investment decisions in the financial world. This article explores how these biases influence investment decisions and examines how financial product design can exploit or mitigate such biases. First, we explain the fundamental concept Read more…
Download PDF Introduction An easy and cheap way to access capital for value-creation, or maybe the first step towards imploding a business that worked for over 50 years? Popularised in the 1980s as an alternative form of financing for corporations amid high interest rates, asset sale-leasebacks have since found applications Read more…
Download PDF Introduction In an increasingly volatile geopolitical landscape, global defence markets are undergoing rapid and historic transformation. From the United States to Europe, military budgets are surging, procurement strategies are evolving, and investor interest is spiking. In the U.S., legacy defence giants are facing a wave of disruption from Read more…
Download PDF Introduction In 2024, over 240 activist campaigns were launched globally, the highest number since 2018, according to a Barclays report. The US and APAC remained the primary regions for activism, with 44% and 29% of campaigns initiated in these areas, respectively. Meanwhile, activity in Europe saw a slight Read more…
Download PDF Introduction What are the main differences between different European economies right now? Will the two traditionally strongest nations be able to recover from these years of weak economic performance and political uncertainties? In this article we will try to tackle these questions, as well as exploring the principal Read more…
Download PDF Introduction This article explores how Hierarchical Risk Parity (HRP) compares to other portfolio optimization strategies, particularly those based on volatility and traditional portfolio theory. To rigorously test this approach, we constructed a portfolio that rebalances on the first tradable day of December each year from 2005 to 2025. Read more…
Download PDF Introduction The Danish Compromise is a regulatory provision within the Capital Requirements Regulation (CRR) which allows banks to apply favorable capital treatment to their equity investments in insurance subsidiaries. This mechanism has a significant impact on capital allocation strategies for financial conglomerates active in both banking and insurance Read more…
Download PDF USA Most stock indexes ended the week on a negative note, although the Russel 3000 Value finished 1.54% higher and the Dow Jones Industrial Average finished 0.80% higher. The NASDAQ and Russel 3000 Growth index significantly underperformed the market, predominantly driven by regulatory uncertainty and concerns of the Read more…
Download PDF Introduction The global diamond industry has long been a cornerstone of luxury markets and industrial applications, with rough diamonds serving as the raw material for both high-end jewelry and specialized industrial tools. While gem-quality diamonds are polished and set into engagement rings, necklaces, and other luxury items, lower-quality Read more…
Download PDF Introduction Over the past decades, private equity has emerged as a robust asset class, consistently matching—and often outperforming—public market returns over longer horizons. This article examines the performance of private equity funds, detailing how strategies such as multiples expansion, deleveraging, and operational improvements have driven returns. Yet over Read more…
Download PDF Definition Over the past years, Private Equity Co-Investments have been on the rise. A PE Co-Investment is a minority investment that is made directly into a company alongside a private equity sponsor who is acquiring a controlling/majority stake on said company. GPs may want Co-Investor for some deals Read more…
Download PDF USA U.S. equities experienced a volatile week as markets navigated a mix of strong early gains and later losses amid mounting geopolitical and tariff concerns. With Presidents’ Day keeping markets closed on Monday, trading began on Tuesday with stocks surging and the S&P 500 Index reaching record highs Read more…
Download PDF About Boaz Weinstein Boaz Weinstein is a seasoned hedge fund manager specializing in credit derivatives, structured products, and event-driven strategies. He began his career at Deutsche Bank [BIT:1DBK] in the late 1990s, where he founded Saba Principal Strategies, a proprietary trading group focused on relative value opportunities in Read more…
Download PDF Introduction Tariffs have recently made headlines, and this time they are the centerpiece of President Trump’s new trade strategy. Simply put, tariffs are taxes imposed on goods imported from other countries, with the goal of protecting local businesses or balancing trade. Though they seem like a simple solution, Read more…