Category: Story of Interest

When quant funds came out, they were more or less rock stars on Wall Street. Since they first arrived on the scene in force in the mid-1990s, there have been great successes, as well as the occasional and spectacular failures. By and large, though, quantitative investing enjoyed a nice run until 2007. But from the second half of that year through well into 2009, quants underperformed both traditional managers and the market indices by significant margins. Since then, according to Morningstar, relative performance has stabilized, with quant funds gaining and edge over traditional hedge funds in 2010 and outperforming them soundly in 2011. There are myriad hurdles for practitioners who pursue this style of investing. The headwinds facing quantitative investors were addressed in great detail in Challenges in Quantitative Equity Management, a Research Foundation of CFA Institute monograph published in 2008. Through surveys and interviews, authors Frank J. Fabozzi, CFA, … Continue reading Why Quantitative Funds are no Longer the Holy Grail for Investors and Trader in Residence

By Kaustubh Raut US President Barack Obama signed a measure on 19th October 2013 that reopens the federal government after 16 days of a partial shutdown and provides a brief reprieve on the United States economy, preventing a credit default. Here government created nothing but an illusion of cure for long ailing sickness. What this new deal means is funding for the government till January 15, extending treasury’s borrowing ability till 7th February (extraordinary measures could take it to late March), maintaining sequestration. All it did was postpone the inevitable but it did nothing to address the long term fiscal sustainability. All we can hope is, this deal will give lawmaker little breathing space to engage into figuring real ways out of this mess. This problem is not going to be solved without political unanimity. We have to realize that actual need of these political parties is not to solve … Continue reading The Stopgap and Trader In Residence

By: Steven Wu Currency Swap between China and Europe China and Europe are set to continue increasing their bilateral investments strongly despite a global economic slowdown, and the newly-established free trade zone in Shanghai will actively promote investment liberalization China-Europe economic cooperation is increasingly diversified as Europe, which is already China’s largest trade partner, is becoming an important destination for Chinese enterprises seeking overseas expansion. Therefore, China has accelerated plans to internationalize its currency by agreeing to swap euros and yuan with the European Central Bank. The swap agreement with the ECB is China’s second-biggest with a foreign central bank, after South Korea’s 360 billion yuan swap line. The bilateral currency swap agreement between the ECB and the People’s Bank of China is valid for three years and has a maximum size of 350 billion yuan (US$60.8 billion). The deal is the latest of a string of currency swaps that … Continue reading Currency Swap between China and Europe and Trader in Residence – TiR

The DeGroote Trading Centers will be hosting Trader in Residence, a speaker series being industry professionals in DeGroote to discuss their success in their field of business. The series takes places every Tuesday at 5:30PM in the Ron Joyce Center, RJC, in room 136 and is also viewable via a 2 way camera in the Gould Trading Floor located at 122A in the DeGroote School of Business, DSB. Drinks and food will be provided at the DSB location. For further information regarding the series please visit: https://trading.degroote.mcmaster.ca/trader-in-residence/ The list of upcoming speakers is as follows: October 15- Torstein Braaten-Chief Executive Officer, Chief Compliance Officer and Managing Director of TriAct Canada Marketplace LP October 22- Darren Farwell- Senior Wealth Advisor | Director, Wealth Management | ScotiaMcLeod Head Office Branch October 29- To Be Announced November 5- Paul Allison-Chairman, Chief Executive Officer, and President -Raymond James Ltd. November 12- To Be Announced … Continue reading Trader in Residence – TiR

By Greg Sun China announced plans for a new free-trade zone in Shanghai to bring about change in the financial sector, along with numerous different industries. Once a very sheltered city, is now open for foreign competition, and has the potential to be one of the biggest reform since 1978. Major plans include moving towards a convertible yuan and liberalised interest rates. Such restructuring to a market-oriented financial system are key to a sustainable growth. With its regional decentralized system, China allows municipalities to experiment with reforms before implementing it to the rest of the country. Such is the case earlier this year when Shanghai’s financial sector was able to experiment the tool of short selling in the capital markets. Government laws on foreign businesses in the zone will be suspended October 1, where foreign direct investments are more easily to reach the city. With the announcement, speculative investments has … Continue reading FTZ Shanghai

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THE IDEAL CANDIDATE We are looking for a highly driven and self-motivated individual with a genuine interest in Finance and who has strong organizational, communication and analytical skills. You will be dependable and able to handle a variety of tasks in a very precise and accurate manner throughout the 2013 academic year. You should also have: • Completed the Volunteer Internship Program (VIP). • Exceptional leadership and presentation skills. • Working towards an undergraduate/MBA degree. Students from all faculties are encouraged to apply! RESPONSIBILITIES • Supervise the trading floor, and assist fellow students with research and other inquiries. • Co-organize as well as attend weekly speaker series, Trader in Residence, and other events held throughout the year. • Conduct presentations and seminars ranging from software applications to trading simulations. CONTACT US If interested, please submit a hardcopy of your resume and cover letter to the Allen H. Gould Trading Floor … Continue reading Apply to the GTF & HIDC

Ford Motor Co. and the Canadian Auto Workers (CAW) have finally reached an agreement. The four-year labor agreement has come into play quick enough to avoid the strike that would have halted production. The agreement is expected to create at least 600 new positions at Ford Canada, having the vast majority at the company’s Oakville plant. However, the CAW’s first priority is to bring back as many of the 800 laid off Ford employees throughout Ontario. The agreement mostly eliminates cost-of-living raises for workers and retirees. In doingso, each employee will receive lump sum payments of $2,000 in year two, three, and four of the contract, along with a $3,000 ratification bonus. The CAW is asking for Chrysler Group LLC and General Motors Co. to accept the same terms. So far it has been indicated that they are unable to agree to those terms. “So I say to General Motors … Continue reading CAW reaches tentative labor agreement with Ford

On 16th march, the EU and IMF agreed on a €10 billion ($13 billion) deal with Cyprus making it the fifth European country to receive money from the EU and IMF. Part of the bailout agreement demands that all bank customers pay a one-time levy that led to heavy cash withdrawals throughout Cyprus. Under the currently agreed terms, depositors with less than 100,000 euros in Cyprus accounts would have to pay a one-time tax of 6.75%. Those with sums over that threshold would pay 9.9%. Some sources have said that the president may want to lower the former rate to 3%, while raising the levy on the larger depositors to 12.5%. The president of Cyprus, Nicos Anastasiades has insisted that without the bailout, Cyprus could face bankruptcy and a possible exit from the EU. The banks were closed on Monday for a national holiday and are being kept closed to … Continue reading Cypriot Bailout Strategy

Relations between Japan and China, two of Asia’s biggest economies, has never been in good spirits, their exchange has been referred to as “hot in trade and cold in politics”.  However two countries have managed to stay complacent as they are one of each other’s largest trading partners.  This changed on September 11 when the Japanese Cabinet approved Tokyo Governor, Shintaro Ishihara’s, request to use public funds to buy the islands from a private owner which has resurrected a decades old feud on the Islands true ownership.  China contests that this “constitutes a severe violation of China’s sovereignty”.  Since then Japanese personnel have landed on the islands and boats have been patroling recently. Disdain towards Japan hasn’t been this heated since 2005 when Japanese textbooks downplayed the brutality of their actions during the Second World War.  Protests have been held daily since the occurrence forcing some Japanese companies to reduce … Continue reading Territory Dispute Between China and Japan Over Islands Disrupts Economy