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On Slack: Returns of Robo-Advisors; Don't Go For Cute Inv. Managers; 5 IT Stocks Lose 47K Cr; 10 Financial Modelling Commandments and more

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What’s Happening on Our Slack Channels?

The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there (Premium subscribers only), pop us a note by replying to this email or login here using your premium credentials.

Capitalmind Slack discussions

A brief summary of some of the interesting things discussed there in the last few days:

#general: Don’t give him access to your loot, just because his talk is cute !

Choosing and investment manager is in many ways even more difficult than choosing stocks. We meet with them and open ourselves up to a new set of biases. Successful fund raisers are more qualified in psychology than in economics. Just like your “trusted” “sweet-talking” jeweller is more qualified in etiquette and mannerisms than actual gemology, some investment managers too know the art of selling better than the art of making money.

#general: Goldman Sachs Has Started Giving Away Its Most Valuable Software

There is perhaps no better sign of the changes that have engulfed Wall Street than this: Goldman Sachs has recently started giving clients the tools that made it a trading powerhouse, for free.

#general: India’s ‘flash boys’ fret over proposed automated trading curbs

India’s “flash boys”, or high-frequency traders, are pushing back against the domestic markets regulator and in some cases putting investments in new strategies on hold, saying proposed tighter rules could render their ultra-fast systems redundant.

#general: Sink or die, but pay back home buyers: SC tells Supertech

Supreme Court today gave a stern message to Supertech asking it to return money to investors saying it was not concerned whether the real estate major “sinks or dies”, a direction which may soothe ruffled feathers of hassled home buyers waiting endlessly for their dream homes.

 #bonds-and-funds: Chart o’ the Day: The Tech Breakout Nobody’s Talking About

My pal JC Parets at All Star Charts has a pair of worthwhile charts to check out concerning the recent strength in large cap tech. It’s not just tech on an absolute basis – it’s tech relative to the overall markets that is most interesting to him.

#bonds-and-funds: Returns vary widely for robo-advisors with similar risk

Automated investing services, known as robo-advisors, offer low-cost portfolios designed for each investor’s risk tolerance — but the bespoke nature of the investments make them difficult to benchmark.
Robo-advisors are growing rapidly. Financial services research firm Cerulli Associates estimates that assets under management of robo-advisors will soar by 2,500 percent to $489 billion in 2020 from $18.7 billion in 2015. That’s roughly 22 percent of the estimated $2.2 trillion independent registered investment advisors manage today.
returns of robo-advisors-suck-too

#bonds-and-funds: Fund Management BS-Meter

Understand how much you pay to get your money managed professionally.

#stocks-fundamentals: Top 5 IT stocks lose nearly Rs47,000 crore in market value, on TCS profit warning

India’s top five technology companies on Thursday lost a combined Rs.47,000 crore in market value in morning trade on Thursday after Tata Consultancy Services Ltd (TCS) warned about weakness in its key banking, financial services and insurance (BFSI) arm.
A quick note on What is the provisioning  % for a NPA versus standard asset ? How does this play over time ?
Banks NPA provision percentages over time

#stocks-fundamentals: 10 Commandments of Financial Modeling

From Nick Colas, Chief Strategist at Convergex, comes the 10 Commandments of Financial Modeling:

#stocks-fundamentals: SpiceJet Q1 net profit beats estimates, up 104 per cent at Rs 149 cr ; shares up 20%

SpiceJet shares advanced nearly 20 per cent on Wednesday after the company reported better-than-estimated 104 per cent growth in net profit at Rs 149.03 crore for the quarter ended June 30, 2016
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