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📑 Research Notes for 2021-01-19
This week, we look possibilities with a new Democratic president and Congress, venture capital interest, and a dismal year for quantitative strategies.
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A Narrowly Democratic Congress Could Boost Spending and Growth.
What can we expect from a unified, albeit narrowly, Democratic Washington? We expect more spending on COVID-19 relief in the near term with a longer-term focus on “economic rebuilding,” a central message of President-elect Joe Biden’s campaign, which could include an infrastructure bill, healthcare, and other non-economic priorities such as a voting rights bill.
North American Venture Investment Rose In 2020, Culminating With Big Exits And A Strong Q4.
History will remember 2020 as a very bad year by many measures. However, venture funding will not be one of them. Funding for startups and growth-stage private companies in North America held up at historically high levels last year. Even amid a pandemic, widespread unemployment, and escalating small-business closures, investment was up year over year across all stages from early and beyond.
Human-Run Hedge Funds Trounce Quants in Covid Year.
After years of being outgunned and outclassed by computer-driven quantitative strategies, human stock-pickers climbed back on top in 2020, helped by aggressive bets in technology and the flood of central bank money that buoyed markets. The dizzying gyrations of the pandemic-stricken year humbled even the most sophisticated of quants -- notably behemoths Renaissance Technologies and Two Sigma -- whose trading models were thrown off by swings their computers had never seen before.
Curated by Joseph Lu, CFA®
Joseph has over a decade of experience as an investment professional, primarily in quantitative analysis and portfolio management roles. He is the founder and managing director of Conscious Capital Advisors and a CFA® Charterholder. The CFA charter is a globally respected, graduate-level investment credential by the CFA Institute, a global association of more than 90,000 investment professionals working in over 133 countries.
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