1/
This was a long personal goal of mine. However, I wanted a fund using a quarterly macro strategy, the same way I trade for my personal account.
Turning BASON into a tradeable strategy was actually inspired by many of our readers and followers.
2/ Dozens of you, impressed by our performance, contacted us suggesting we should turn the BASON into some sort of fund.
We took that advice seriously.
During the summer we made a brief pitch and got in touch with many people from the finance industry and investor community...
3/
...to see if that idea would even make any sense.
A weekly prediction method that consistently beats the markets? Fat chance!
However, much to our excitement, the feedback was excellent.
4/ We got really useful suggestions on how to organize the whole thing, how to backtest a bunch of alternative strategies, how to set up the fund structure, automate our trading, etc.
A few of these calls ended up as our first investors. Kudos to them for taking the plunge!
5/
The next step were a few cap raise events, to see if there is any real interest among investors.
Again, to our excitement, there was.
The stage was set, regulatory requirements fulfilled, the fund is registered, and will be live trading by the end of January 2023. Liftoff!
6/ A big thank you to everyone who participated in our survey competition. We couldn't have done it without you!
In 2023, we are giving you even more - linking your performance to the performance of the fund.
7/ And finally, a big thank you to everyone who already pledged to invest and support this idea from the start.
I will never forget that, and will strive to return the favor in the best way possible.
This year's econ #Nobel Prize was awarded to three professors for their research on banks and financial crises.
What struck me is this: "The laureates’ insights have improved our ability to avoid both serious crises and expensive bailouts,"
Did it though? 🧵 👇
1/ First of all, let me be clear that I do not express any doubts towards the academic contributions of profs. Bernanke, Diamond, or Dybvig.
I read Bernanke's pre-Fed work on the Great Depression & am familiar with their work.
In a purely academic sense - kudos to the winners!
2/ It's the policy implications that I find problematic.
Three points to be made here:
1 - QE arguably made the system more vulnerable, not less.
2 - systemic risk was amplified, not reduced
3 - the bailouts *were* expensive (and politically driven)
One of the reasons why Bernanke was chosen to run the Fed back in the day was his contribution to studying the Great Depression and the failures of central banks.
An error he did not repeat during his tenure..
Very interesting timing on this one:
as the BoE is intervening heavily in the UK gilt market,
as US banks are facing $4bn of losses on bad loans,
as Credit Suisse is fighting its own liquidity crisis,
...