July 1, 2016

Market Favoring Yield

BREXIT Volatility continues to send shock waves across markets and sectors. One theme is still in tact, however. The market continues to favor REITs, Utilities and Stocks generally offering attractive dividends. Verizon (VZ) is a name our engine flagged earlier in the Spring. The portfolio position is generating substantial alpha at present. […]
January 14, 2016

Blending Multiple Strategies is Key

The U.S. stock market is off to a historically bad start in 2016, leaving many investors and financial advisors with painful losses. However, intelligent advisors and High Net Worth investors diversify. That means they employ a range of alternative investments that act as hedges and indirect hedges against wild and […]
January 8, 2016

Protecting Capital & Capturing Alpha in Times of Distress

Second Phase Technologies can’t see the distant future any better than the next firm. We can’t predict the source and timing of the next crisis. However, we can assume (and do) that markets go through periodic times of turbulence and periodically face crises that cause dislocations in various assets – […]
December 8, 2015

Amongst the Noise, there is Opportunity

The growth of technology has provided us with the ability to dissect and manipulate data at an unprecedented level. Even compared with just a few years ago, the improvements in access to real-time streaming data, in-memory databases, high speed CEP engines, cloud based storage of massive data sets and the […]
September 21, 2015

How Passive can you Afford to be?

Hand-picked investment opportunities by your broker or wealth manager have long been a route taken by high net worth investors seeking superior capital appreciation for the riskier part of their portfolios. However, the age-old debate of passive vs active investing may hide more than it appears. Sub-par performance from hedge […]
August 12, 2015

How Family Offices View Hedge Funds

I interviewed Michael Oliver Weinberg who has served as a CIO at a NY single family office and has extensive experience in hedge fund investing and asset  allocation. Given his background, I wanted to get his view on investing in hedge funds.  Here’s an interesting excerpt from my interview with Michael: Richard C. […]
July 30, 2015

Strength in the Utilities Sector

Second Phase models witnessed a noticeable spike in activity from the Utilities sector during July, indicative of a strong group move identified by the underlying algorithms. All symbols that appear above the 45-degree line are showing outperformance (Alpha) gained by being either long or short the individual stock rather than the […]
July 20, 2015

The Future of Trading?

How the most powerful female hedge fund manager sees trading changing in the next 10 years Leda Braga, 48, is considered the most powerful female hedge fund manager in the world. In January, she launched her fund, Systematica Investments, a computer-driven fund. With $8.8 billion in assets, Braga manages more than any other female […]
July 2, 2015

When It Comes to Investing, the Web Is Going to Waste

The volume of data produced online dwarfs all other sources. And research shows that 23 percent of the world’s digital information, if captured and analysed, could be useful to investors. But currently, only 3 percent is captured, and only a minute portion then analysed. The drive to make better use […]
July 1, 2015
patterned building

Should You Trust Your Money to a Robot?

Time and time again, the evidence suggests that humans’ record in picking investments is quite poor, and there is a surge of interest in artificial intelligence for financial prediction and risk management. But should we trust our money to a robot? The answer depends on the type of investing. Financial […]
April 9, 2015

Marrying Human Insight with Code

Although algorithmic trading is a form of automated trading, it hasn’t reached the point where humans can be totally disengaged. On the contrary, the more we rely on systems to make trading decisions, the more human oversight is needed to make sure they’re performing as intended. “As with all ‘black […]
February 20, 2015

Balancing Safety and Risk in Today’s Portfolio

The Barbell approach to portfolio management is akin to a see-saw equalizing the effects of safety and risk at opposite ends and has traditionally been achieved through counterbalancing very safe assets such as bonds with much higher risk ones, with very little if nothing in between those two categories. Such […]