Category: Investing

Economist: Bets on low market volatility went spectacularly wrong

Here is an article from The Economist that details the dangers of structured products, such as Credit Suisse’s XIV which collapsed spectacularly last week. Banks like to sell these products to institutional and high net worth clients because they generate fees for the banks and often times are not well understood by the clients –…

[VIEW FULL POST]

Economist: GE’s flow of financial information has become fantastically muddled

The many problems with GE’s financial reporting has made it difficult for both managers and investors of GE alike to assess the health of the conglomerate. At Aureus, we feel it’s important provide clear and concise client reporting so that both ourselves and our clients are able to properly assess their current financial situation and have the necessary…

[VIEW FULL POST]

WSJ: BlackRock CEO to Companies: Pay Attention To ‘Societal Impact’

While ESG funds are being raised at a rapid pace, they represent a very small percentage of stocks and therefore their influence on management teams is questionable. However, BlackRock is one of the largest investors in stocks through its passive iShares index platform, which heretofore had itself taken a largely passive stance with regards to…

[VIEW FULL POST]

The Economist: Investment banks’ cull of company analysts brings dangers

This article from The Economist lays out the reasons for and potential fall-out from MiFID2. If the new regulation ultimately results in fewer sell-side analysts covering stocks, it should increase the opportunity set of mis-priced securities for those who continue to pursue active investing, such as ourselves. Read the full article in The Economist

[VIEW FULL POST]

NYT: Young and in Love … With Lipstick and Eyeliner

This article lays out how the makeup industry has proven resilient and capitalized on social media as a driving force for expanded revenues.  Not just overall sales, but makeup store retailers benefit too. Read the full article in The New York Times

[VIEW FULL POST]