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Cryptocurrencies Don't Behave Like Other Assets

Cryptocurrencies Don't Behave Like Other Assets: By Brian C. Albrecht | A new NBER working paper shows how cryptocurrencies have no exposure to most.  Cryptocurrencies offer the possibility of a diversified asset in a portfolio.  As the authors of a new study point out: the risk-return tradeoff of cryptocurrencies (Bitcoin, Ripple, and Ethereum) is distinct from those of stocks, currencies, and precious metals. Cryptocurrencies have no exposure to most common stock market and macroeconomic factors. They also have no exposure to the returns of currencies and commodities. In contrast, we show that the cryptocurrency returns can be predicted by factors which are specific to cryptocurrency markets...

Facebook Stock Decline Hits Hedge Funds Hard

A longstanding problem for hedge funds has been the limited number of companies that have sufficient amount of publicly traded stock to accommodate the appetite of hedge funds with billions of dollars to invest.  The result is "herding" where many large hedge funds end up with similar positions: i.e., a concentration of assets in a small number of stocks.  Additionally, these stocks make up a significant component of the S&P 500 which causes the heavily exposed hedge funds to show performance that mimics the S&P 500 as well as each other.
Facebook stock decline hits hedge funds hard
https://www.bloomberg.com/news/articles/2018-06-04/facebook-has-the-most-hedge-funds-counting-it-as-a-top-holding​

A Good Excuse for Laziness

Survival Of The Sluggish: Scientists Find An Upside To A Low Metabolism https://n.pr/2LphFN9

Models will Run the World

Hedge fund titan, Steve Cohen, known as the ultimate "stock picker," i.d. make trades based on fundamental analysis, is predicting that quantitative models using massive databases, will dominate trading, as well as other sectors.  ​https://www.wsj.com/articles/models-will-run-the-world-1534716720

New Bond Issue Managed by Blockchain

https://www.ccn.com/world-bank-to-settle-73-million-blockchain-bond-on-ethereum-next-week/

SEC rejects 9 more Bitcoin ETF Proposals

SEC continues to reject Bitcoin ETF proposals because the proposals are not consistent with the Exchange Act Section 6(b)(5) and its requirement that a national securities exchange's rules "be designed to prevent fraudulent and manipulative acts and practices."