January 2008
- Alternative Viewpoints - Some perspective on 130/30 funds, a year into the "(r)evolution"
Director's Comments
Happy New Year to our candidates, friends of CAIA, and fellow finance practitioners!
As we all know, the arrival of a new year is a time of reflection and evaluation - taking stock of what has been and looking forward to what may come. Since our inception, this has been the case here at the CAIA Association. This year, we are provided with the opportunity to consider not only what has happened over the past year, but in the five years of the CAIA designation. We are very proud to celebrate 2008 as the fifth year of the CAIA charter!
On November 5, 2002, the first announcement was sent out to our very modest database that the CAIA program was accepting registrations. In February 2003, 79 brave individuals sat for that first exam, 43 of whom would become our inaugural class of July 2003. We invite you to join us in commemorating 2008 - our fifth year of exams and membership, the cornerstones of the CAIA Association.
Much is in store for the CAIA Association in 2008, including inaugural forays to several countries, including South Africa and Brazil later this month (see below). Of course, we look forward to returning to global CAIA centers such as London, Geneva, Hong Kong, New York, Toronto, Zurich and Singapore. Our current chapters, as well as those that will be launching very soon, are planning many exciting activities for CAIA members and candidates. So keep your eyes open for those invitations throughout the year!
Additionally, the CAIA Program team is continually searching for ways to enhance and expand the curriculum and examinations, and we expect to share some very exciting developments later this year. As always, the input of our community is invaluable, so keep your ideas and comments coming.
Finally, we know that a vibrant alternative investment community is essential for the wellbeing of the sector as well as the practitioner. We look forward to focusing our attention on this goal and providing new and valuable resources to the community as a whole.
2008 is shaping up to be no less fascinating a year for the industry, as well. As the excesses from subprime lending continue to worm their way through the markets, we can expect to see some interesting and innovative responses from the industry. The subsequent impact on Central Bank policy and growing concerns over counterparty risk, especially as it pertains to credit default swaps, are two examples of news we'll be watching for. On the macro side, global political unrest, high oil prices and growing commodity demands, national elections, and regulatory uncertainty will remain significant market factors as the year progresses. In short, while the specifics are highly uncertain, we are assured that 2008 will be a year rife with challenges and opportunities.
We wish all of you the very best for a successful year and hope you will join us in celebrating the arrival of 2008 and our fifth year as the global mark of distinction in alternative investments!
Best regards,
E. Craig Asche
Executive Director
March 2008 Exam Registration Update
- Exam registration closes January 28, 2008 at 11:59 PM EST
- Late registrations are not considered under any circumstances
- Exam dates: March 10 - 21, 2008
- Register for an exam here
Scheduling an Examination Appointment:
Pearson VUE testing centers are currently open to scheduling for the March 2008 CAIA exam period. We strongly recommend scheduling your exam appointment with them as soon as possible to ensure a seat at your preferred testing center. All exams are scheduled directly through Pearson VUE. If you have not received your scheduling instructions, please contact candidate@caia.org.
Registration vs. Scheduling:
While exam registration closes on January 28th, you may schedule your exam appointment with Pearson VUE at any time after completing the purchase process.
Alternative Viewpoints...powered by CAIA
Some perspective on 130/30 funds, a year into the "(r)evolution" posted January 1, 2008 on AllAboutAlpha.com
Steve Deutsch, CFA, CAIA
Director of Collective Investment Trusts/Separate Accounts, Morningstar, Inc.
Despite all the excitement about short-extension strategies, 130/30, 120/20 and other constrained ratio investment products are not that monolithic or revolutionary (Morningstar refers to them simply as "leveraged net long"). Contrary to popular assumption, most are not purely quantitative. Nor are they the sole domain of mutual fund companies and retail investors. And given their short histories, many remain unproven. As a result, it is far too early to determine if these vehicles will reach $2 trillion (or even $1 trillion, for that matter) in the next five years.
See what PIonline.com said about Alternative Viewpoints!
AllAboutAlpha.com's column, Alternative Viewpoints, aims to provide the thoughtful and reasoned opinions typical of CAIA members on the various topics covered by AllAboutAlpha.com. AllAboutAlpha.com is read by over 10,000 unique readers each month in the hedge fund and greater asset management industry.
JAI Featured Article - "Hedging Liquidity Risk"
In conjunction with Institutional Investor Journals, we are proud to offer you access to a featured article from the latest edition of the Journal of Alternative Investments, the official journal of the CAIA Association. We hope you will take advantage of this unique opportunity to read cutting edge research from the leading journal of the alternative investment sphere.
This quarter's highlighted article, "Hedging Liquidity Risk", is only available to JAI subscribers and through our website.
CAIAA on the Road - 2008
The CAIA Association continues to visit financial centers around the globe, building on the successes of 2007. Next on our agenda is a trip to Brazil followed by South Africa this month. We look forward to meeting with local CAIA members and increasing our outreach efforts to AI-focused practitioners and firms wherever we travel.
Two presentations in South Africa are open and available to the public, so please do share this information with any colleagues that may be interested in learning more about the program.
Cape Town - January 22
Johannesburg - January 24
CAIA is pleased to announce the addition of our newest official chapter in Chicago, Illinois, USA! In celebration, CAIA Chicago (headed by Bill Gruzynski of Emerald Traders) will be hosting an educational presentation by Hilary Till highlighting her most recent research on commodities and the release of a new book that she has co-authored entitled Intelligent Commodity Investing.
Later this quarter, representatives from the Association will also be traveling to Texas, San Francisco and Los Angeles as part of our ongoing efforts to increase awareness of the CAIA program. Stay tuned for more announcements, as we'll likely be visiting a city near you.