Managing Investments As A Charity Or Nonprofit
by ValueWalk - April 16th, 2021 12:32 pm
By Anna Peel. Originally published at ValueWalk.
Maintaining financial viability is a constant challenge for charities and nonprofit organizations.
Q4 2020 hedge fund letters, conferences and more
The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.
Finding ways to generate long-term, sustainable returns for your nonprofit organization has become more important than ever.
But don’t invest money just because it’s there.
Do your research and invest strategically. Find opportunities that will help your organization realize both immediate and long-term goals while aligning with your values.
Strategic investment will result in:
- Maximization of long-term funds
- Creation of a reliable, sustainable income source
- Potential financial growth for future expansion
- Protection of funds against inflation
- Generation of better returns than bank-held cash
Questions to Ask Before Investing
Will the investment align with our mission and goals?
Will it help meet our financial goals?
Does it align with our policies on ethical investment?
How long should we plan to invest in it?
Is it within our acceptable risk level?
Establishing Your Risk Tolerance
Any type of investment – even a straightforward cash deposit – entails both potential reward and risk. Defining your risk tolerance level is about determining the balance that will best align with your organization’s goals.
Consider multiple factors – from your comfort level with potential fluctuations in the value of your organization’s assets, to how quickly you may need to liquify your assets down the road.
Your potential risk level is largely determined by how you choose to allocate your assets.
Asset Allocation Options
When you spread investments over different asset classes – and even across different parts of the globe – you avoid the concentration of volatility and risk in one specific area.
One of your goals with respect to investment should be to derive a regular dividend or income that can cover most or all of your operational expenses including your spending on software tools like CRM, or any other IT software, salaries, utility payments, etc.
The good thing is that nonprofits and…
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Psychology In Trading: How Pandemic Pressure Impact Our Ability to Spend & Save Responsibly
by ValueWalk - April 16th, 2021 12:28 pm
By Jacob Wolinsky. Originally published at ValueWalk.
- The Psychology of Trading by IG provides insight into the factors that can influence financial decisions.
- UK consumers purchase discretionary items due to boredom brought on by the pandemic.
- Advice, expert knowledge and commentary share how ‘fear in trading is often associated with distress and is caused by the threat of loss, real or imagined’
Q1 2021 hedge fund letters, conferences and more
COVID-19 And Its Impact On Consumer Fear:
Fear is often highly associated with finances and COVID-19 has only increased consumer fear on whether or not they feel their money is safe. According to a recent report [4], more than 53% of UK consumers are in fear that they will lose their savings due to the pandemic.
With an unstable economy likely to continue to impact the everyday consumer long after the lockdown is lifted, these fears are seemingly here to stay and continue to impact decision making.
Insight: Fear in trading is often associated with distress and is caused by the threat of loss, real or imagined. Fear can help to keep impulsivity in check but it can also cloud decision making, causing a trader to close out a position too early, or miss out on profit by being too afraid to open a trade.
IG’s own study showed that less experienced traders were more affected by fear and uncertainty when compared to professional traders. One explanation for this is that professional traders might have experienced more losses and so could be more comfortable with the fear of loss to secure profit.
One way to limit the effects of fear is by approaching every trade with a plan, and by placing stops to reduce any losses and limits to lock in profits.
UK Consumers Purchase Discretionary Items Due To Pandemic Boredom
Despite the fear of the unknown impact the pandemic will have on our savings, research shows that UK spenders have been purchasing discretionary items, with many said to have done so through boredom and a need for lifting spirits.
According to a report from Barclays Bank [3], Brits have spent £40.6 billion on items to lift spirits during lockdown. Of these spenders, a third have found that their purchases made lockdown more enjoyable.
Purchasing goods and services out of boredom is…
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American Rescue Plan offers many more benefits than coronavirus stimulus checks
by ValueWalk - April 16th, 2021 12:27 pm
By Aman Jain. Originally published at ValueWalk.
For most people, the American Rescue Plan is the source of a third stimulus check of up to $1,400. In reality, the stimulus checks are just one part of the massive $1.9 trillion plan. The American Rescue Plan offers many additional benefits to people apart from the coronavirus stimulus checks.
Q1 2021 hedge fund letters, conferences and more
Coronavirus stimulus checks is just one benefit
Most people are only concerned about the coronavirus stimulus checks that the American Rescue Plan offers. However, the $1.9 trillion plan offers many more benefits that could help people get more money than the stimulus checks. Some of these benefits are mentioned below:
Within this press release is a list of the federal #stimulus programs available for regular folks and direct links for those who might qualify to apply. @news10nbc https://t.co/gJrddRQ4qI
— Jennifer Lewke (@WHEC_JLewke) April 13, 2021
Additional Child Tax Credit up to $1,600 – the American Rescue Plan raises the maximum credit from $2,000 to $3,000 per child ($3,600 for children under age 6). Also, it extends the child tax credit to 17-year-olds.
Earned Income Tax Credit – the latest relief plan offers expanded EITC (Earned Income Tax Credit) for low-paid adults without minor children at home. The American Rescue Plan raises the maximum EITC for eligible people from around $540 to around $1,500. It also raises the income cap from about $16,000 to at least $21,000.
Additional credit to reduce health premium – those who already registered for the health premium tax credit, including those who got through the 2021 Special Enrollment Period, need to update their application to benefit from this provision under the American Rescue Plan.
More funds for Low-Income Home Energy Assistance Program – those who need this benefit can apply for the same online, or by calling 1-800-342-3009.
Enhanced Child and Dependent Care Credit – under this benefit, eligible families will get a tax credit on childcare expenses spent on children below 13 years of age.
More benefits under American Rescue Plan
Increase in SNAP benefits – the plan extends a 15% increase in SNAP benefits through September. The additional benefits were…
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News Analytics Data Can Help Forewarn of Market Risks
by ValueWalk - April 16th, 2021 12:26 pm
By Joaquin Monfort. Originally published at ValueWalk.
Traditionally used by hedge funds to drive alpha-generating strategies, news analytics data also has applications for assessing financial market risks, as the deep-dive into the research below shows.
Q1 2021 hedge fund letters, conferences and more
Before ordering in the Moet it’s always a good idea to make sure your back is covered, and as every professional money manager knows, an accurate assessment of the potential downside to any given position is an integral part of the job, especially in the current regulatory climate.
The investment game is a bit like poker; to be good you don’t just need to know the odds but you also need to be able to read the opponent’s hand – not just so you can win but also so you can know when to cut your losses; and to do this successfully players employ all the information at their disposal.
As such, we thought it would be useful to look at whether news analytics data – a type of alt data generated by scanning thousands of news articles online – can help portfolio managers get a better picture of the downside risks to their positions.
Obviously, the news has a highly reflexive relationship with asset prices; driving, and in turn being driven by them; and this would suggest this type of data could be of great value, but to what extent and in what ways can it be useful?
To help us answer these questions, RavenPack’s data science team wrote a white paper on the subject, which we have summarized below.
We hope it provides an assessment of the downside risks, if any, of not incorporating this type of data into your decision-making.
No Reward Without Risk
Volatility is a double-edged sword. When positive it can be a gold mine for traders; when negative a Balrog chasm in Moria. Without it, traders can’t turn a profit, but along for the ride comes a healthy dose of liability. How then, if at all, can news sentiment help investors get on the right side of this tricky customer?
Most but not all volatility is caused by the news so it seems to be an area ripe for the use of news analytics. Research by Audrino et al…
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Coinbase Offering Is ‘Landmark Moment’ for Crypto, Here Is Why
by ValueWalk - April 16th, 2021 12:26 pm
By Jacob Wolinsky. Originally published at ValueWalk.
In a landmark moment for the crypto industry, Coinbase Global Inc (NASDAQ:COIN) was valued at $85.8 billion in its listing on the Nasdaq stock exchange.
Q1 2021 hedge fund letters, conferences and more
Insights from thought leaders in the crypto industry, as to what this development means for the industry and the financial services industry at large.
Cryptocurrency Is No Longer Underground Money
Masakazu ‘Senshi’ Kikuchi, CEO of Secured Finance, said:
“Coinbase’s listing brings a frame-shift to global users that cryptocurrency is no longer underground money and to become a legitimate currency. Its valuation can be higher than Facebook’s IPO of $104bn, impressing people that blockchain technology underpins a global financial infrastructure.
Traditional finance institutions have to change gears to driving mode and start seriously researching cryptocurrency for their clients. They should expect much broader investors and higher trading volume; thus, it’s inevitable to move onto crypto. This move could stimulate a consolidation among centralized crypto companies.
There are potential challenges for banks to expand the crypto business is the cryptocurrency’s risk weight under BIS regulation. So, the installment of full-scale crypto finance could take time. In this regard, the fast-growing decentralized finance (DeFi) can provide institutional-scale services in a peer-to-peer manner.”
The Coinbase IPO: A Landmark Event
Nicholas Pelecanos, Head of Trading at NEM commented:
“Beyond being a landmark event in the crypto space, the Coinbase IPO signals the transition from crypto being a fringe alternative asset to being accepted by institutional investors.
Valuations for the company are estimated around $100 billion and some prediction markets are even pricing in >$150 billion valuations. In my opinion these are over valuations for the company but representative of the current bullish interest in crypto markets. Coinbase stock will likely act as conduit for mainstream money to gain an exposure to the crypto ecosystem. As a result I expect the stock to correlate closely with the BTC price action.
The broader impacts of this IPO for crypto will likely see further interest in the space due the publicity of the event, further institutional adoption and strong price appreciation of exchange tokes like BNB and FTT, contingent of course on a successful listing for Coinbase.”
Mainstream Adoption Among Both Retail
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These Are The Ten Richest Women In The World In 2021
by ValueWalk - April 16th, 2021 12:25 pm
By Aman Jain. Originally published at ValueWalk.
Despite the pandemic, 63 more women joined the elite billionaires club in 2021. Forbes 2021 billionaires list included 328 women, compared to 241 last year. Their combined net worth was $1.53 trillion, an increase of 60% from last year. These billionaires added more than $570 billion to their wealth, largely due to the rebound in the stock markets. Detailed below are the top ten richest women in the world in 2021.
Q1 2021 hedge fund letters, conferences and more
Top Ten Richest Women In 2021
Following are the top ten richest women in the world in 2021 as per their net worth:
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Iris Fontbona & family (Chile, $23.3 billion)
Iris inherited Luksic Group after the death of her husband Andronico Luksic in 2005. The group has an interest in beverages, mining, industrial and financial sectors. She also owns a majority stake in Quiñenco, which is a Chilean conglomerate operating in the banking, beer and manufacturing industry. Iris is the richest woman in Chile, and her net worth was about 6% of the country’s GDP in 2016.
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Gina Rinehart (Australia, $23.6 billion)
Rinehart is the executive chairman of Hancock Prospecting, a private mining and agricultural business that she inherited. What she inherited was a bankrupt estate, but with her hard work and dedication, Rinehart turned around the business into one of the most successful business stories. She also ventured into the beef market, making Hancock the third biggest cattle producer in Australia.
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Susanne Klatten (Germany, $27.7 billion)
Susanne Klatten owns about 19% of BMW, a stake that she inherited from her late mother, Johanna Quandt. She is also the owner and deputy chairman of Altana, a pharmaceutical and chemical company. Klatten also holds a stake in Nordex AG (a wind power company), Geohumus (soil additive company) and SGL Group (carbon and graphite producer). She helped her grandfather transform Altana AG into a world-class pharmaceutical/specialty chemical company.
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Yang Huiyan & family (China, $29.6 billion)
Yang owns more than 50% of Garden Holdings, a popular real estate company founded by her father, Yeung Kwok…
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HVS 1Q21: Grizzlyrock’s Investment In Ciner Resources
by ValueWalk - April 16th, 2021 12:09 pm
By Jacob Wolinsky. Originally published at ValueWalk.
Hidden Value Stocks issue for the first quarter ended March 31, 2020, featuring interviews with Connor Haley, the Managing Partner of Alta Fox Capital Management, and with George Livadas, the Portfolio Manager of Upslope Capital. Blue Tower’s top value investment, EZCORP Inc (NASDAQ:EZPW), from their 2020 annual letter. GrizzlyRock Value Partners’ new investment idea Ciner Resources LP (NYSE:CINR), as highlighted in their 2020 annual letter.
Introduction
Welcome to the March 2021 (Q1) issue of Hidden Value Stocks.
In this issue, we have our usual two interviews and extracts from letters of funds previously profiled.
The first interview is with Connor Haley, the Managing Partner of Alta Fox Capital Management, LLC.
Alta Fox is a Fort Worth, Texas-based investment manager that primarily focuses on identifying under the radar, high-quality businesses. The Alta Fox Opportunities Fund launched in April 2018 with approximately $10 million of committed capital. Today, the fund is temporarily closed to new investors with about $210M of committed capital.
Since inception in April 2018, the fund has produced a gross return of 374% and a net return of 268% compared to the S&P 500’s return of 50%, the Russell 2000’s return of 34%, and the Russell Microcap’s return of 28%.
George Livadas, the Portfolio Manager of Upslope Capital is our second interviewee. Founded in 2017, Upslope’s objective is to deliver attractive, equity-like returns with significantly reduced market risk and low correlation versus traditional equity strategies.
Since inception, Upslope has produced a net return for investors of 63.5% with an average net long exposure of 42%, compared to a return of 17.8% for its benchmark, the HFRX Equity Hedge Index. We hope you enjoy this issue of Hidden Value Stocks, and if you have any questions or comments, please feel free to contact us at support@valuewalk.com.
Sincerely,
Rupert Hargreaves & Jacob Wolinsky.
Updates From Previous Issues: Blue Tower
Andrew Oskoui’s Blue Tower highlighted EZCORP (NASDAQ:EZPW) as one of its top value investments in the fund’s 2020 annual letter to investors:
“Normally in an economic crisis, demand for subprime credit is elevated and counter-cyclical companies such as pawn shops have their best years. As a result of the disposable income increase previously discussed, we have instead seen sharply declining demand for subprime credit. Pawn…
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Dogecoin Maybe Worth More Than $1 At The End Of 2021
by ValueWalk - April 16th, 2021 12:04 pm
By Jacob Wolinsky. Originally published at ValueWalk.
Oddsmakers Have Grown More Confident in Bitcoin and Dogecoin Following Surge-filled Week
Q1 2021 hedge fund letters, conferences and more
Dogecoin Maybe Worth More Than $1
Copenhagen – April 16, 2021 – Dogecoin currently has 5/1 odds (16.7% implied probability) to be worth more than $1 at the end of 2021, according to betting aggregators US-Bookies.com (See Disclaimer Below). This is a significant improvement from earlier this month, when it had 33/1 odds (2.9%) to do so.
“Following Elon Musk’s latest tweet, the odds of Dogecoin hitting the landmark value of one dollar have fallen significantly,” says a US-Bookies spokesperson. “Not so long ago, the prospect that the currency would be worth any more than a few cents seemed remote, but momentum is building and another surge – even as soon as this month – cannot be ruled out.”
Dogecoin also has 16/1 odds (5.9% implied probability) to reach $1 by the end of April. Oddsmakers are currently placing 10/1 odds (9.1%) on Elon Musk allowing Teslas to be purchased with Dogecoin this year.
Big Price Increases Expected For Bitcoin
Bitcoin is also likely to see big price increases, according to the oddsmakers. Bitcoin’s odds of reaching $100,000 this year improved slightly from 5/4 (44.4% implied probability) to 11/10 (47.6%) since the beginning of the month. Its odds of hitting $200,000 also improved from 16/1 (5.9%) to 12/1 (7.7%) during this time. Bookies now also list Bitcoin as 33/1 (2.9%) to eclipse $400,000, and 66/1 (1.5%) to reach $1 million.
“The cryptocurrency market has been quite the interesting sight as of late, and that’s mostly thanks to Bitcoin’s incredible rises, which have led bookies to grow quite confident that it will continue to take off,” says a US-Bookies spokesperson. “However, the volatility is noted, as oddsmakers also give Bitcoin 4/1 odds to fall to $10,000 in 2021.”
Odds that Bitcoin Reaches the Following Prices in 2021 (parentheses indicate odds on April 6):
- $100,000: 11/10 (5/4)
- $200,000: 12/1 (16/1)
- $400,000: 33/1
- $1,000,000: 66/1
- Fall to $10,000: 4/1
- Fall to $1,000: 250/1
Dogecoin Odds (parentheses indicate odds on April 6):
- To be worth more than $1 at end of 2021: 5/1 (33/1)
- To be worth
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53% Of Minority-Owned SMBs Can’t Afford April Rent
by ValueWalk - April 16th, 2021 11:55 am
By Anna Peel. Originally published at ValueWalk.
53% Of Minority-Owned SMBs Can’t Afford April Rent, Despite Early Signs Of Recovery
Q1 2021 hedge fund letters, conferences and more
Minority-Owned SMBs Can Not Afford April Rent
Boston, MA, April 15, 2021: Many small business people are feeling better about their prospects as expedited vaccine distribution is taking effect across the U.S. But that doesn’t mean the money is rolling in yet. And for minority-owned small businesses, the rent situation continues to be very difficult.
Alignable’s April Rent Poll, conducted among 8,943 small businesses from 3/27 to 4/5/21, showed that covering the rent remains a major obstacle for nearly one-third (31%) of all small business owners in the U.S. But for minorities, that percentage is much higher: 53% of minority-owned SMBs could not afford to pay their full rent on time.
And as this chart indicates, their situation is more dire than the struggles of other demographic groups.
While 53% is better than last month’s number, 67%, it’s still very discouraging and suggests that the recovery for many minority-owned businesses will likely be slower and more difficult.
Unfortunately, this reflects a trend we’ve seen throughout the COVID Era that doesn’t seem to be going away.
And the fact that more than half of minority-owned businesses can’t pay their rent also indicates that the PPP program is not fulfilling its early promises to focus on helping minorities, at least so far. Much more needs to be done for minority-owned small businesses to help them to rebound.
Small Business Economy’s “Glimmer Of Hope”
Despite the ongoing challenges that minority small businesses face paying their rent, there is a glimmer of hope for the overall small business economy.
That’s abundantly clear when we compare the 31% average from this month to March’s figure: 49%. So dropping 18% to 31% is a welcome reversal in the worrisome upward trend that lasted from January to March.
And much of this can be attributed to increased hope of a new normal ushered in by faster vaccine distribution.
Along with that general trend reversing, we did see some improvement in several industries, too.
Rent Rebound For Restaurants, Retail, Gyms & Salons?
Look at the latest chart for April and compare it to our statistics from just one month ago.…
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Sullivan & Cromwell Tops M&A Legal Advisers Rank
by ValueWalk - April 16th, 2021 11:42 am
By Jacob Wolinsky. Originally published at ValueWalk.
Sullivan & Cromwell and Kirkland & Ellis were top M&A legal advisers by value and volume in North America for Q1 2021, finds GlobalData
Q1 2021 hedge fund letters, conferences and more
The Top M&A Legal Advisers In North America
Sullivan & Cromwell and Kirkland & Ellis were the top mergers and acquisitions (M&A) legal advisers in North America for Q1 2021 by value and volume, respectively. Sullivan & Cromwell advised on 32 deals worth $109.3bn, which was the highest value among all advisers. Meanwhile, Kirkland & Ellis led in volume terms having advised on 189 deals worth $108.8bn. A total of 3,927 M&A deals were announced in the region during Q1 2021, according to GlobalData, a leading data and analytics company.
According to GlobalData’s report, ‘Global and North America M&A Report Legal Adviser League Tables Q1 2021’, deal value for the region increased by 132.2% from $208bn in Q1 2020 to US$483bn in Q1 2021.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Kirkland & Ellis was the only adviser to advise on more than 100 deals, and, apart from leading by volume, it also gave tough competition for top position by value. However, the firm lost top position by value to Sullivan & Cromwell by a very small margin and had to settle for second position.
Transaction Values
“Meanwhile, Sullivan & Cromwell advised on a much lower number of deals but saw higher-value transactions – helping it top by value. While the average transaction of deals advised by Sullivan & Cromwell stood at $3.4bn, it was just $576m for Kirkland & Ellis.”
Skadden, Arps, Slate, Meagher & Flom occupied the third position in terms of value with 56 deals worth $101bn, followed by Paul Weiss Rifkind Wharton & Garrison with 44 deals worth $99.8bn and Wachtell Lipton Rosen & Katz with 21 deals worth $84.4bn.
Latham & Watkins occupied the second position by volume with 84 deals worth $81.9bn followed by Willkie Farr & Gallagher with 66 deals worth $55.4bn, Jones Day with 66 deals worth $24.8bn and Goodwin Procter with 63 deals worth $27bn.
Methodology for League Tables
GlobalData league tables are based on the real-time tracking of thousands of company websites, advisory firm websites and…
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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
Ilene is editor and affiliate program
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