• Key market indices
    • S&P 500: 3913.97 -0.44%
    • DJIA: 31493.34 -0.38%
    • HSI: 31084.94 +1.10%
    • STI: 2920.43 -0.51%
    • Gold Spot $/Oz: 1769.48 -0.35%
    • Brent Crude: 62.38 -2.42%
    • Bitcoin: 51253.16 -2.02%
  • Dow falls from record amid disappointing jobs data and weak Walmart forecast (Link)
    • The Dow fell 119.68 points, or 0.4%, to 31493.34, slipping from a record high; the S&P 500 dipped 0.4%, to 3913.97, falling for a third straight day; The Nasdaq Composite slipped 0.7% to 13865.36 as investors continued to rotate out of high-flying tech
    • Walmart shares dropped 6.5% after its fourth-quarter earnings fell short of Wall Street estimates
    • Stocks are sliding across the board with high-multiple growth names getting hit the hardest thanks to the unrelenting rise in yields
  • The Market Minute: Will SPACS outpace traditional IPOs this year? (Link)
    • Patrick Healey, founder and president of Caliber Financial Partners, thinks that the volume of SPACs is going to certainly outweigh the number of IPOs, but the IPOs will remain to be the bigger deals
    • So far in 2021, there have been 145 SPAC initial public offerings that have raised more than $44.5 billion, according to data from SPAC Insider, and the average deal size was $307 million
    • This compares with 55 traditional IPOs that have raised $21.7 billion so far this year
    • The number of SPACs this year, according to Healey, is a result of the industries targeted by SPAC sponsors being "really hot"
  • Bitcoin keeps hitting new highs as crypto mania accelerates (Link)
    • Bitcoin's incredible rally shows little signs of abating yet after the token jumped past $52,000 for the first time
    • The crypto faithful believe that the digital asset is grabbing more mainstream attention, especially after Tesla Inc.'s recent $1.5 billion purchase
    • MicroStrategy Inc. boosted its convertible debt sale to buy Bitcoin by nearly half to $900 million and cut the coupon to 0%, making it virtually a straight bet on the price of the cryptocurrency
    • Nicholas Pelancos, head of trading at NEM said that the reason why Bitcoin is soaring is the trend that MicroStrategy started and Tesla popularized: moving institutional balance sheets into BItcoin to hedge against inflation
  • The most powerful artificial intelligence knows nothing about investing and that's perfectly okay (Link)
    • Clients have expressed growing disappointment with quants, as manifested in their steadily increasing redemptions
    • However, a genuine remedy for their current, and most certainly, future ills exists: artificial intelligence
    • The power of advanced AI, such as deep learning (DL) and deep reinforcement learning (DRL), is rooted in its ability to find patterns in data directly and make predictions independent of human intelligence or expertise
    • These new AI models will know nothing of the investment canon, the CFA curriculum or momentum; instead, they will hunt through the data, identifying patterns and similarities between the target and the data, and then use this knowledge to make investment decisions
  • London manager to launch an absolute return options fund (Link)
    • Carmika Partners LLP is a discretionary investment manager that specializes in quantitative volatility trading and is about to launch its Carmika Absolute Return Fund Master Ltd domiciled in Delaware
    • The firm's Alpha Hedge Strategy is an absolute return options strategy targeting low double-digit returns
    • The firm generates alpha through taking advantage of the richness/cheapness in options while maintaining an investment objective complimentary to risk assets
    • The strategy uses a proprietary, quantitative model to seek opportunities in volatility, which are then analysed, stress-tested, and implemented through discretionary management by a team with +20yrs of capital markets experience working together at Goldman Sachs since the late 90s
  • Refinitiv launches MarketPsych ESG Analytics (Link)
    • To monitor perceptions of sustainability and ESG risk, Refinitiv and MarketPsych have partnered to create a multidimensional ESG analytics offering
    • Amongst its wide host of applications, one of Refinitiv MarketPsych ESG Analytics use is to quantitative investors, who can deploy the data to enhance alpha generation and risk management
    • The software underlying the Refinitiv MarketPsych ESG Analytics, is a complex AI-based natural language processing (NLP) engine, which locates, filters and scores ESG-themed content pertaining to specific companies as well as cities, regions and countries from tens of millions of authors in thousands of global resources

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