Newsletter - December 2009
- Director's Comments
- Exam Updates
- Member Profile
- Alternative Viewpoints
- Chapter Notes
- CAIA Out Front
- Conversation Pieces
Director's Comments:
The Year in Review
Globally, headlines are changing as the closing bell rings for 2009—and that’s good news for the industry.
Following the subprime debacle of 2008 and subsequent global credit freeze, 2009 has begun to see a thaw in the flow of capital back into existing and new hedge funds and CTAs. Despite the regulatory uncertainty overhanging our industry, we are seeing renewed interest in alternatives, as a whole, with the news of asset managers being hired, pension plans reallocating to alternative investments, and financial advisors clamoring for education and knowledge about alternatives.
Surveys by the likes of Spectrem Group, Cerulli Associates, and Morningstar and Barron’s confirm the growing interest in alternative investments and, indirectly, point to the increasing value of the CAIA designation. Some references to the value of CAIA are more explicit, such as the one that lists CAIA among the "Big Eight" financial designations.
Financial professionals are certainly taking note of this value, with over 12,000 having registered for the CAIA exams since our inception. Interest has led to the launch of new chapters in Boston, Hong Kong, and Germany in this year alone. It has also spurred growth in globally-sponsored CAIA events—both in terms of the number of events as well as the number of attendees per event. Of course CAIA’s ability to attract such notable speakers as John Bollinger, creator of Bollinger Bands; Mark Yusko, President and CIO, Morgan Creek Capital Management, LLC; and Richard Sandor, Chairman and CEO of the Chicago Climate Exchange, has certainly contributed to the growing "buzz."
Our reputation as the go-to organization for AI professionals is not a windfall. We work hard and purposefully to fill the huge AI education and knowledge void in the industry. Just take a look at the level of expertise of the many industry professionals who contributed to the creation of the CAIA Knowledge Series introduced this year: Mark Anson, Ernest Jaffarian, Francois Lhabitant, Thomas Meyer, Pierre-Yves Mathonet, Richard Spurgin, and David McCarthy, to name just a few. The list is impressive and includes many CAIA members who contributed significant time and thought to the process. For a full accounting of all we have accomplished in 2009, I invite you to read our Year in Review report.
Looking ahead, we will continue enlarging our global footprint through the addition of new chapters, increased educational events, and the expansion of our Asian operations, all the while continuing the unending process of maintaining the currency and excellence of our designation program.
2009—much to be thankful for; much to look forward to!
Happy holidays to all,
Craig Asche
Executive Director
Exam Updates
March 2010 Registration Now Open
- Register for an exam here.
- Exam dates: March 04 - 19, 2010.
- Exam registration closes January 26, 2010.
Scheduling an examination appointment:
Pearson VUE has now opened its testing centers to scheduling for the March 2010 CAIA exam period. We strongly recommend scheduling your exam appointment with them as soon as possible to ensure a seat at your preferred testing center. All exams are scheduled directly through Pearson VUE. If you have not received your scheduling instructions, contact candidate@caia.org.
Member Profile
Robert Koller, CAIA
Attorney, Clifford Chance
Robert Koller, a lawyer admitted to the bar in Madrid, Spain, and a member of the Frankfurt Bar, spent his early professional years at a top-tier Spanish law firm. It was his long-time interest in the findings of Benoit Mandelbrot, the father of fractal geometry, that inspired his particular interest in finance, which soon brought him to Gibraltar where he established both hedge and private equity funds and acted as a director of some funds.
After returning on-shore in 2008 to Frankfurt, with the Finance and Capital Markets practice of the international law firm Clifford Chance, Koller found his hands full with the fallout from the recent financial crisis.
"The crisis is currently the main focus here in Germany, as it is all over the world. We still have to help the banking sector to get on its feet by ‘detoxifying’ it through diverse structures. But we also had a real frenzy in fixed income. I think that one of the main challenges will be to strengthen investors’ trust in sectors such as securitizations, structured notes, and derivatives." In addition to this daily work with bailouts and fixed income, Koller has been busy lately with catastrophe bonds, regulatory law and derivatives, and repackaging alternative investments in structured notes and UCITS funds.
Of his CAIA designation, Koller says, "It’s helpful for me to understand what the fund managers who are my clients actually do, so that I can reflect that adequately in the legal documentation." He points particularly to his work in funds and project and asset finance for infrastructure and renewable energy projects, where he believes his CAIA education gave him a grasp of the business plans underlying those investments.
Koller believes that "as lawyers, as in many other professions, we are often quite inwardly-focused. The CAIA program will give you an additional perspective and will help you understand—not only from a structural point of view, but also with hard numbers—the strategies and motivations of players in the financial markets. For me, it is about being able to speak to clients in their language."
Koller has been a particularly active CAIA member: after some participation with the CAIA Iberia chapter while in Spain and Gibraltar, he has taken over pre-chapter coordination in Frankfurt, where he organizes the group’s periodic social meetings, known as "Stammtisch," and where he recently put together educational events on commodities and distressed assets. He has also written for the Alternative Viewpoints column in AllAboutAlpha.com and started the CAIA XING group online.
Alternative Viewpoints... powered by CAIA
The Ineichen Dialogues: A Green Pig Down Wall Street
By: Alexander Ineichen, CFA, CAIA
posted on October 28, 2009
A Green Pig Down Wall Street – Act I
Once upon a time, not so long ago, there was a bear named Winnie-the-Bear who lived in the Trillion Acre Wood. On some level, he was a silly old bear. Nevertheless, he was wondering what the fuss about hedge funds was all about. He invited his two best friends, George Jones, the famous hedge fund manager, and Ben Put, the famous academic central banker, to the Trillion Acre Wood for a chat on hedge funds.
Winnie-the-Bear: Thank you for joining me for a new adventure. The financial crisis was a major disaster. Didn’t anyone see it coming?
George Jones: Very few did. The financial meltdown was a so-called Green Pig event. These things are impossible or at least very difficult to predict.
Winnie-the-Bear: What’s a Green Pig event?
George Jones: It’s financial jargon for an event that is highly improbable to occur but has a major impact on everyone if it actually does occur. It’s from a famous book called The Green Pig – The improbable impact of the randomly fooled.
To continue, please click here.
Chapter Notes
BOSTON:
Gerard Gardner, North Asset Management, and Larry Heller, Helios Capital Management, led a debate titled "Inflations vs. Deflations" at the Harvard Club on Thursday, November 5.
CANADA:
On Thursday, January 7, CAIA Canada will begin the New Year with a cocktail social in Montreal. Venue details will be confirmed and posted. Save the dates and click here to register.
As part of the joint CAIA/CFA Vancouver Alternative Investments Outlook Forum, the CAIA Canada chapter in Vancouver hosted a reception on Tuesday, December 1, for CAIA members, candidates, and industry professionals.
"The Toronto branch of CAIA Canada kicked off the Holiday season on Thursday, December 3 with an event you might call a 'think and drink,'" said Chris Holt, Associate Director of Industry Relations, who attended the event. The event included presentations by four industry experts on their outlook for the future. Read more.
CHICAGO:
A well attended CAIA Chicago holiday social was held Tuesday, December 8. Chris Holt, Associate Director of Industry Relations, provided an update on the association. Read more.
FRANCE:
Gilles Guérin, Deputy CEO of HDF Finance, and Dunny P. Moonesawmy, Head of Fund Research in Western Europe and the Middle East for Thomson Reuters, spoke on Wednesday, December 9, at an educational event organized by the CAIA Association in Paris. Craig Asche, Executive Director, and Steve Wallace, Associate Director of Industry Relations, EMEA, attended the event. View related resources.
GERMANY:
CAIA Germany’s launch as the association’s 11th global chapter on Tuesday, Dec. 8, included a panel discussion on "Alternative Investments After the Crisis." The discussion focused on climate investing, hedge funds, and private equity. Congratulations to Robert Koller-Vernot and Christian Voit, CAIA Germany Chapter executives. Craig Asche, CAIA Association’s Executive Director, and Steve Wallace, CAIA's Associate Director of Industry Relations, EMEA, attended the event. View the presentations and related resources.
HONG KONG:
The chapter launch of CAIA Hong Kong on Friday, November 6, featured an outstanding panel of experts discussing "The Alternative Investment Industry in 2010: A Global Perspective." View a blog post and links to news articles covering the event.
IBERIA:
CAIA Iberia held an end-of-the-year social networking events in Barcelona on Thursday, November 26, and in Madrid on Friday, November 27.
LONDON:
CAIA London held a social at the Counting House on Wednesday, December 16.
NEW YORK:
CAIA members attended holiday celebrations in New York on Tuesday, December 15, and in Stamford, CT on Wednesday, December 16, to find out if Santa Claus would see his shadow – predicting six more weeks of recession. Chris Holt, Associate Director of Industry Relations, attended both events.
SAN FRANCISCO:
Members attended the CAIA San Francisco Alternatives Affair at the Press Club on Tuesday, December 15. View event details.
SINGAPORE:
CAIA Singapore held an educational seminar titled "Private Equity Industry in Asia." Claudia Zeisberger, Affiliate Professor of Decision Sciences and Program Director of the Center for Decision Making and Risk Analysis, INSEAD, was the featured guest.
SOUTHERN CALIFORNIA:
Members in Los Angeles and the surrounding areas attended a highly successful Exam Congratulations and Social event in November. Chris Holt, CAIA's Associate Director of Industry Relations, gave an update on the Association.
SWITZERLAND:
CAIA Switzerland closed the year with yet another successful and oversubscribed educational event which featured Dr. Sassan Zaker, CFA, Julius Baer Portfolio Management/Alternative Investments, who spoke about "The Changing Role of Hedge Funds in Portfolio Context - The Alpha Uncertainty Principle."
CAIA Switzerland’s educational dinner program in November also drew a crowd. John Bollinger, creator of Bollinger Bands, was the featured speaker on "A History of Volatility: Or why it is a mistake to put volatility in the divisor."
EVENTS AT NON-CHAPTER LOCATIONS:
Recent member events took place in other non-chapter locations including Shanghai, Taipei, Copenhagen, Dublin, Luxembourg, Vienna, Tokyo, New Delhi, Atlanta, Seattle, Amsterdam, and Cape Town.
CAIA Out Front
Christopher Holt, Director of Industry Relations, will moderate a panel for the upcoming GAIM USA being held in Boca Raton, January 19-21, 2010. CAIA members receive a 15% discount on conference registration.
Conversation Pieces
Click on these links for this month’s conversation pieces.