This paper demonstrates that bitcoin’s medium-to long-term price follows Metcalfe’s law. Bitcoin is modeled as a token digital currency, a medium of exchange with no intrinsic value that is transacted within a defined electronic network. Per Metcalfe’s law, the value of a network is a function of the number of pairs transactions possible and is proportional to n2. A Gompertz curve is used to model the inflationary effects associated with the creation of new bitcoin. The result is a parsimonious model of supply (number of bitcoins) and demand (number of bitcoin wallets), with the conclusion bitcoin’s price fits Metcalfe’s law exceptionally well.
This paper investigates the investment returns of Ivy League endowments in the U.S. in order to evaluate their alpha generation abilities and determine performance efficiency. They find that, while some funds show superior manager selection capabilities when evaluated against both public and private asset classes, most funds show superior alpha generation abilities only when evaluated against public asset classes, and the endowments tend to take on large risks to do so. When properly measured, such risks indicate that the alpha achieved is not high enough to result in noticeably different Sharpe ratios to a 60-40 portfolio.
The authors research the efficacy of their Market Cycle Indicator (MCI), and provide insight into what they believe the capital markets will be like in the foreseeable future. Moreover, they highlight potential pitfalls investors should be concerned with and some potential strategies to consider in advance of the proverbial Endgame.
Recent developments have not only driven numerous financial markets to record highs, but also significantly increased the correlations between various asset classes. Following one of the longest bull markets in history, current price levels and the comovement behaviors of traditional asset classes suggest reduced expected returns and diversification benefits in the future. The question therefore is whether there exist investment strategies that still provide an attractive risk/return profile and consistent diversification benefits. The hypothesis and aim of this paper is to demonstrate that the unambiguous answer is yes!
Malaysia has become the pioneer among the ASEAN countries when the Securities Commission approved Special Purpose Acquisition Companies (SPAC) in 2011. As an alternate form of an Initial Public Offering (IPO), SPAC offers investment opportunities similar to venture capital with a protection on the downside with an IPO trust. This study analyses the four existing firms, the strength and weaknesses of SPAC IPOs, and also provides policy suggestions to the authority on how to strengthen the institutional framework to benefit other financial markets in ASEAN.
As it has grown and matured over the past two decades, secondary private equity has shifted away from a niche market characterized by distressed sellers and significant discounts to a functional and active marketplace with increasingly sophisticated participants. This primer reviews the history of the secondary market, answers some of the questions investors may be asking today, and considers how the secondary market will continue to evolve going forward.