In this article, we will provide an overview on momentum investing, explaining what the strategy is and how it works. We will provide historical values that shows that strategy generated positive returns in the past but also negative returns if the most recent period is observed. What is it? In Read more…
Introduction Chinese buyers are becoming increasingly important in worldwide M&A activities. Their deal volume has increased from $259bn in 2013 to $735bn in 2015, of which $61bn were closed cross-border transactions. In 2016 the numbers have considerably increased: announced cross-border activity reached $96bn in Q1 and the up-to-date expected volume Read more…
The Blackstone Group LP (NYSE: BX) – market cap as of 11/11/2016: $28.95bn TeamHealth Holdings (NYSE: TMH) – market cap as of 11/11/2016: $3.07bn Introduction On the 31st of October 2016 Team Health Holdings Inc. announced that the company has reached an agreement to be acquired by a group of Read more…
Nippon Yusen K.K. — market cap as of 11/11/2016: ¥326.51bn (€2.94bn) Mitsui O.S.K. Lines, Ltd. — market cap as of 11/11/2016: ¥320.87bn (€2.89bn) Kawasaki Kisen Kaisha, Ltd. — market cap as of 11/11/2016: ¥225.45bn (€2.03bn) Introduction On October 31, Nippon Yusen K.K., Mitsui O.S.K. Lines, and Kawasaki Kisen Kaisha reached Read more…
The US Electoral System In the US, the race for presidency is a long process that includes primaries, caucuses and national conventions, in which the parties’ candidates are determined. The main popular vote on who is going to be president of the US is called general election and will take Read more…
The famous Black-Scholes model is a mathematical model used for pricing financial derivatives. It is particularly useful because it offers an explicit formula for the value of a European option in terms of time to expiry of the contract T, risk-free interest rate r, strike price of the option K, Read more…
United States On the week ended November 4th, election uncertainty overshadowed improving fundamentals and sent US stocks to their ninth consecutive decline. Over the week, the Dow Jones Industrial Average declined -1.0% to 17978, the S&P500 Index declined -1.4% to 2097.40, and NASDAQ declined -2.1% to 5080. The last heavy Read more…
CenturyLink Inc. (NYSE: CTL) — market cap as of 04/11/2016: $12.58bn Level 3 Communications Inc (NYSE: LVLT) — market cap as of 04/11/2016: $18.52bn Introduction On October 31, 2016, CenturyLink Inc. agreed to acquire Level 3 Communications Inc. in a cash and stock transaction valued at approximately $34bn. The new Read more…
Qualcomm Inc. (NASDAQ: QCOM) – market cap as of 04/11/2016: $96.54bn NXP Semiconductors NV (NASDAQ: NXPI) – market cap as of 04/11/2016: $34.15bn Introduction On October 27, 2016, Qualcomm Incorporated and NXP Semiconductors N.V. announced a $47bn agreement in which Qualcomm is to acquire all of the outstanding shares of Read more…
General Electric Co. (NYSE: GE) — market cap as of 04/11/2016: $251.59bn Baker Hughes Inc. (NYSE: BHI) — market cap as of 04/11/2016: $24.57bn Introduction In a statement on Monday – October 31, 2016 – General Electric (GE) announced its intention to combine its gas and oil division with Baker Read more…
There’s Nothing Smart about Smart Beta Smart Beta is anything but new: strategies developed in the 70s with the aim of outperforming the market through relatively simple quantitative analysis. It is the middle ground between passive and active investment. Due to the fact that when it comes to stock picking Read more…
United States Disappointing earnings from Apple and Amazon heavily weighed on the Nasdaq, falling 1.3%. Positive surprises from large companies, such as Procter & Gamble, helped to offset some disappointments in the tech sector, resulting in the S&P 500 falling 0.7%. So far, the earnings seemed solid, as this is Read more…
In the second part of the article, we saw how to spot anomalous price movements and how to profit from the divergence between futures and spot prices in the crypto market. Moreover, we showed the key indicator on which we should always be focused on. In this third part, which Read more…
Introduction Over the past years, the technology industry experienced an overwhelming volume of M&A activity. The following article aims at outlining the motivations behind this phenomenon and at identifying numerous disrupting factors. Microsoft’s acquisition of the professional social network LinkedIn, as well as Snapchat’s rebranding strategy and potential IPO in Read more…
British American Tobacco Plc. (BATS)—market cap as of 28/10/16: £87.26bn Reynolds American, Inc. (RAI)—market cap as of 28/10/16: $78.16bn Introduction On October 21, 2016, British American Tobacco (“BAT”) delivered a non-binding merger proposal to Reynolds American Inc. (“Reynolds”). Through this $47bn deal, BAT will acquire the remaining 57.8% of Reynolds’ Read more…