SPACs, the new blank check companies are not delivering their unicorn promises. Even the prophet’s recommendations are not performing. Surprisingly, Chamath Palihapitiya is nowhere to be seen.
The blank check companies are raising billions in IPOs… but for how long? Here is the SPAC 101 manual: nature, popularity, ego crisis… and even options!
Index providers provide research with some discretion on trillions of assets. They move markets. Their errors are costly.
Should those ‘data providers’ become ‘investment advisors’? The SEC is considering it. Two academics explain why and how this should be implemented.
Goodhart’s Law: When a measure becomes a target, it ceases to be a good measure.
The Sharpe ratio has changed investor behavior. We chase the metric rather than the underlying quality it is trying to assess, and there are plenty of situations where the Sharpe is a poor metric of quality.
And there are unfortunately major losses, which keep on demonstrating the point – LTCM, AIG, Malachite…