• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer
  • Subscribe
  • Twitter
  • RSS Feed

Investment News NZ

Investment News provides financial advisers news stories from the financial industry in New Zealand. Subscribe to our free weekly newsletter.

  • Home
  • News
  • Kiwisaver
  • Subscribe
  • About
  • Advertise
  • Contact
You are here: Home / Investment News / Fund hack: how journalists could have the answers (and the questions)

Fund hack: how journalists could have the answers (and the questions)

December 16, 2018

Trent Loi: AMP Capital portfolio manager

Journalists could provide fund managers with a new source of alpha as traditional investment information becomes increasingly commodified, a just-published AMP Capital paper argues.

The article, authored by Sydney-based AMP Capital portfolio manager, Trent Loi, says technology has both increased the availability of information and the speed at which it “gets arbitraged away”.

“… anyone trying to use publicly available information to make a decision is probably too late, as it will have already been factored into the price,” the paper says.

Fund managers have sought to break the data deadlock by tapping into private networks of ‘experts’ and using cutting-edge technology to gain bespoke investable insights.

“The problem is that many of these new, so-called edges are available to everyone, at a price,” the AMP Capital report says. “They are not proprietary and therefore become quickly adopted, thus diluting the advantage they provide.”

But investment firms could break the information stalemate by setting journalists on the beat, the paper says.

“… some savvy fund managers are turning to hiring journalists, who are skilled in uncovering hidden information and looking at publicly available information from a different perspective, in order to find a true proprietary edge in an increasingly competitive marketplace,” the AMP Capital report says.

According to the paper, the hire-a-hack strategy won’t replace fundamental research but journalists could make the investment process “more objective” by using sources of information outside the standard analyst closed loop.

The AMP Capital paper lists seven basic qualities of the journalistic approach that, allegedly, could spin funds management in profitable directions, including:

  • resourceful research techniques such as the ability to “go out into the world and talk to people”;
  • generalist skills that go beyond the narrow confines of sector-specialist analysts;
  • a big picture approach;
  • flexibility;
  • speed;
  • persistence; and,
  • access to unique sources of information.

All of those skills could see fund managers reap money-making insights or provide the same value “as reading a newspaper” depending on how investment firms use their pet journos.

“While it is not yet a widespread trend in Australia and New Zealand, there are reports in the US that hedge funds are hiring reporters and even advertising on journalism jobs boards,” the AMP Capital paper says.

However, the report does not reveal whether fund managers pay hacks more than publishers: it is understood that fact is rumoured to be confidential, according to sources close to the matter.

Print Friendly, PDF & Email
Twitter0
LinkedIn0
Google+0
Facebook0

Read More » Investment News

Recent articles

  • Funds management chief vacancy opens up as ANZ divides wealth and private bank April 18, 2021
  • Regulator reasons on fees April 18, 2021
  • Two more Cs for MMC; Fisher CIO scales back but trucks on April 18, 2021
  • Milford adds $1.3bn in December quarter, breaks $10bn barrier April 18, 2021
  • Member admin shake-up as FNZ enters Aussie fray April 18, 2021
  • Government bond manager gets fingers in NZ PIE April 18, 2021
  • Nay-sayers emerge in ESG trend research April 18, 2021
  • Climate change legislative journey begins for NZ financial sector April 18, 2021
  • Hong Kong manager seeks Australasian insto money, assets for new mortgage fund April 18, 2021
Finished reading? Why not subscribe? To receive a weekly email enter your email address here.

Primary Sidebar

WEEKLY NEWSLETTER

Sign up here to receive our weekly newsletter.
Learn More »

Investment News

  • Funds management chief vacancy opens up as ANZ divides wealth and private bank April 18, 2021
  • Regulator reasons on fees April 18, 2021
  • Two more Cs for MMC; Fisher CIO scales back but trucks on April 18, 2021
  • Milford adds $1.3bn in December quarter, breaks $10bn barrier April 18, 2021
  • Member admin shake-up as FNZ enters Aussie fray April 18, 2021
  • Government bond manager gets fingers in NZ PIE April 18, 2021
  • Nay-sayers emerge in ESG trend research April 18, 2021
  • Climate change legislative journey begins for NZ financial sector April 18, 2021
  • Hong Kong manager seeks Australasian insto money, assets for new mortgage fund April 18, 2021
  • Salt diversifies with another AMP Capital hire April 14, 2021

Search by Keyword

Most Recent Investment News

Funds management chief vacancy opens up as ANZ divides wealth and private bank

April 18, 2021

Regulator reasons on fees

April 18, 2021

Two more Cs for MMC; Fisher CIO scales back but trucks on

April 18, 2021

Milford adds $1.3bn in December quarter, breaks $10bn barrier

April 18, 2021

Member admin shake-up as FNZ enters Aussie fray

April 18, 2021

Investment News Archive

Most Popular Articles

  • NZ share-trading splurge could trigger tax alarms… posted on October 5, 2020
  • Westpac NZ flags retail advice sale to Forsyth Barr posted on October 19, 2020
  • Flint set to spark platform competition posted on August 17, 2020
  • The horror year in technicolour: free KiwiSaver 13 report released posted on September 30, 2020
  • Four to the core: Smartshares to expand, rearrange and reprice ETFs posted on June 22, 2020
  • NZ Funds directors back on board posted on April 24, 2016
  • Kitset KiwiSaver scheme set to unwrap in spring posted on April 27, 2020
  • Kiwi Wealth hits the bigger time posted on November 26, 2017

Sponosored Content

Responsible goes retail: why Mint has opened the SRI tin

David-Boyle

Jumping lessons: what all investors can learn from GameStop loss

What do ‘Kiwi’ experts see for 2021?

David-Boyle

On the industry play-list: four chart-topping regulations for 2021

Quick-links to Popular News

  • FAP Compliance
  • Coronavirus
  • New Appointments
  • Financial Markets Authority (FMA)
  • Kiwisaver
  • Climate Change
  • Crypto Currency
  • Blockchain
  • Insurance

Secondary Sidebar

Recent News

  • Funds management chief vacancy opens up as ANZ divides wealth and private bank April 18, 2021
  • Regulator reasons on fees April 18, 2021
  • Two more Cs for MMC; Fisher CIO scales back but trucks on April 18, 2021
  • Milford adds $1.3bn in December quarter, breaks $10bn barrier April 18, 2021
  • Member admin shake-up as FNZ enters Aussie fray April 18, 2021
  • Government bond manager gets fingers in NZ PIE April 18, 2021
  • Nay-sayers emerge in ESG trend research April 18, 2021
  • Climate change legislative journey begins for NZ financial sector April 18, 2021
  • Hong Kong manager seeks Australasian insto money, assets for new mortgage fund April 18, 2021
  • Salt diversifies with another AMP Capital hire April 14, 2021

Footer

Copyright ©2020 InvestmentNews.co.nz — All Rights Reserved ·— Terms & Conditions