Tag Archives: Fund Managers

BlackRock cuts ranks of stockpicking fund managers (FT)

This was sent over by a member so thanks for them sending: (source is FT)

BlackRock cuts ranks of stockpicking fund managers Quant investment strategies to take the place of out-of-favour active managers Read next FTfm Stephen Foley BlackRock’s active funds navigate rough seas © Bloomberg Share on Twitter (opens new window) Share on Facebook (opens new window) Share on LinkedIn (opens new window) 64 Print this page March 28, 2017 by: Stephen Foley in New York BlackRock has fired several prominent stockpicking fund managers and plans to switch their funds to quantitative investment strategies, in what chief executive Larry Fink called a “pivot” away from areas of active management that have fallen out of favour. The company on Tuesday said it was introducing sweeping changes across its troubled actively managed equities funds, in a new example of the upheaval being wrought across the asset management industry by an investor shift towards lower cost passive funds. About 40 staff are being laid off, including seven portfolio managers, according to people familiar with the details of the plan. BlackRock is the world’s largest asset manager, with more than $5tn in assets under management. But $20bn flowed out of its actively managed equities business last year. Across the industry, funds whose managers use traditional fundamental investment research to try to pick winning stocks in highly liquid and efficient markets such as the US have consistently been shown to lag behind cheap index-tracker funds, and have suffered accelerating outflows. By switching dozens of large funds to new strategies that he hopes will prove more popular, Mr Fink is trying to signal to BlackRock’s shareholders that the company has more options than smaller fund groups who specialise only in active equity management. BlackRock “embraces change and turns it into an opportunity”, he said. “We are constantly anticipating how macro trends will reshape both our industry and our clients’ needs. We then pivot accordingly.” The shake-up is the result of a six-month review led by Mark Wiseman, who was poached by Mr Fink last year from the Canada Pension Plan Investment Board, the largest pension fund north of the border. The changes stretch beyond the US large-cap equity funds that have borne the brunt of the shift to passive investing and whose long-term results have been the worst compared with their benchmarks. Even funds such as the $825m BlackRock Global Small Cap fund will be converted to a new quantitative trading strategy that picks stocks based on numeric characteristics. It will adopt the new BlackRock Advantage brand, under which its quant funds will be grouped. That fund’s two managers, Murali Balaraman and John Coyle, are among the seven leaving the company. The Big Read Capital Group takes on the passive investors Once secretive asset manager embarks on an uphill battle against index funds In an interview, Mr Wiseman dismissed the idea that the fortunes of individual stockpickers will improve dramatically as central banks dial back easy monetary policy, as some fund managers have been hoping. “We don’t believe that hope is a viable strategy,” he said. A full list of affected funds will become clear on Wednesday morning, when BlackRock makes regulatory filings and begins to seek board approvals for the strategy shifts. In all, actively managed equity funds with assets totalling $8bn are involved, with about $6bn shifting to new quantitative investment strategies and $2bn switching to become fixed income funds. All of the new strategies come with lower fees, so BlackRock is hoping to limit the number of investors who pull their money because of the changes. The lower fees will mean $30m less in annual income, even if it manages to hold the existing assets. The company will also record a $25m charge in its next quarterly results to cover redundancy costs. According to the consensus of analysts surveyed by Bloomberg, the company is expected to post earnings of $793m for the first three months of this year, up 20 per cent, on revenues of $2.8bn.

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HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

Pay Survey for Quants, Strats, Traders, Structurers, Economists, Risk, Algos, Hedgies, Fund Managers, and all who use maths in finance

Pay Survey for Quants, Strats, Traders, Structurers, Economists, Risk, Algos, Hedgies, Fund Managers, and all who use maths in finance.

It’s ironic that currently those who do numbers for banks have such poor quality numbers to work out whether they are getting the market rate..
Since the Quant group now has a high % of people in these areas we are doing an anonymous pay survey.

http://svy.mk/letqkA

It’s completely confidential because we use a 3rd party SurveyMonkey to collect results. We don’t ask your name, and if it turns out that a given segment has too few people in it to mask the identities of those who respond we won’t publish that result.
That’s not really likely, now that the first week has given us 2,2000 responses.

Why should *you* bother filling this in ?
It is only 3-4 minutes, mostly just clicking boxes with easy questions in them.
We’ve had people test it just to make sure it doesn’t suck up your life with vast arrays of imponderable nonsense.
This is a field with lots of specialisations, and one factor can make a significant difference in your pay, which means if you don’t respond, the numbers for people just like you won’t be quite as good, and I hope I don’t have to make the case for having good numbers for important decisions.
We will of course be publishing interesting results from this survey on Wilmott.com

http://svy.mk/letqkA

Dates for Your Diary
Thursday 26 May 6:00
Financial engineering workshops @ Cass
Piotr Karasinski

“What Drives Interest Rates Volatility?”
Piotr is the co-author with Fischer Black of the Black–Karasinski model of interest rates (but you knew that anyway, didn’t you ?) and now advises the EBRD

Thursday 9 June Yann Ticot (BAML) “Pricing Inflation Vanillas and Exotics”.
If you want to come, RSVP to stewart.hodges.1@city.ac.uk

MATLAB Computational Finance Virtual Conference – June 9th, 2011

Presentations from Deutsche (on HFT), Dexia (on Basel II, Credit Risk & back-testing), Banc Sabadell (on enterprise deployment of pricing & trading analytics), IMF (on economic forecasting), Bank of Canada (on Systemic Risk), Attilio Meucci (on PRAYER framework), Model IT (on Solvency II and insurance risk) and CamraData (on the threat of the Pythagorean cult)

http://matlab.my/mrBAbH

Computational Finance with Mathematica -New technologies for accelerating quantitative analytics,
bit.ly/k1imgk
Monday 6th June London
Tuesday 7th June Paris
Wednesday 14 June Zurich
Wednesday 15 June Frankfurt
Speakers
Efficient Valuation of Complex Derivatives on the GPU
Dr. Andreas Binder, MathConsult GmbH
In the pricing and risk analysis of structured financial instruments, numerical methods for valuation, as well as calibration of the model parameters, have to be implemented very carefully. The calibration often leads to optimization problems for which local algorithms do not converge. We present an efficient hybrid global/local algorithm and compare them to global optimization.

Daniel Duffy author of several major books on financial programming, is running the following workshops:

One-day Master Class: The Alternating Direction Explicit (ADE) Finite Difference Method. Fast, Unconditionally Stable, High-Order Schemes for Derivatives Pricing and Hedging (8 July, London)
http://bit.ly/fFikUq

Creating Trading and Quant Applications in C# and Excel (September 20, 21, 22 London)
http://bit.ly/dHnXPz

Thalesian Seminar (NYC) Rakesh Joshi:FPGAs in HFT
6:30, Wednesday May 25
3rd Floor Playwright Tavern
202 W 49th St, NYC
http://bit.ly/iwzPqy

CQF Information Session
Thursday 2nd June New York 6.30pm Marriott Courtyard Midtown East Manhattan
http://bit.ly/iLmYh7
Your last chance to meet Paul Wilmott and learn about the content of the Certificate in quantitative Finance

Advanced Risk and Portfolio Management Bootcamp
by Attilio Meucci
August 15-20, 2011, Baruch College, New York City
http://bit.ly/jDv3nq

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!