GLG News by Valuation Specialists

Dynamics of wheel production Competitive position of Hayes

1. Pension funds need to understand costs and benefits associated with investing in alternatives such as private equity and hedge funds. 2. The absence of a well-documented process that addresses hedge fund/private equity risk management and valuation issues should be a red flag...

As foreign and U.S. companies get to choose accounting rules by which they will abide, institutional investors must: 1. Understand what the different standards mean in terms of an accounting - economics "gap" 2. Identify whether a reporting entity is perversely changing its behavior to game a...

1. Pension fiduciaries are obliged to manage risk in a prudent fashion.2. Current regulatory guidance requires pension fiduciaries to ask tough questions of their money managers (hedge, mutual, private equity) about risk controls, use of derivatives and risk analysis techniques.3. Everyone stands to...

1. The global derivatives market is huge and growing.2. Many mutual funds employ derivatives.3. Investors want to read the fund's prospectus.4. There are many questions an institutional investor must ask before committing money to a fund that employs derivatives.

1. Many global financial institutions have Chief Risk Officers.2. The risk function is being addressed more often by the board, something that this post's author advocates for pension funds.3. There is a cited need to do more work in the area of credit and energy derivatives.4. Not all financial institutions...

1. Property derivatives allow for exposure to this asset class without direct investing.2. Incremental risks specific to the structure of property derivatives must be taken into account.3. The UK property derivatives market has grown to $10 billion in the two years since inception. Use of good quality...

The new pension accounting standard requires companies to book on their balance sheet the entire pension asset/liability. Typically, companies have higher liabilities and lower equity if pensions are underfunded. IBM has underfunded pension plans, but it adopted the standard by a decreasing equity...

1. The hedge fund industry is changing in terms of rigor applied to fund selection.2. High net worth individuals may have relied more on trust. Institutional investors are asking tougher questions about risk.3. Hedge funds that have failed may have a hard time attracting institutional investors.

1. Demographics are rapidly changing around the world, including China.2. The pension issue is made more acute as people age and represent a larger percentage of the population.3. Asset allocation is an important element of retirement planning.4. The Chinese "401 (k) equivalent" - enterprise annuities...