Capsule: Dr. Andrew W. Lo, Alpha Simplex Group

In the third or fourth quarter, he thinks think money will come back to the industry with a vengeance. Pension funds are going to realize that their asset allocations are out of whack, Mr. Lo said.
JAN 04, 2009
By  Bloomberg
DR. ANDREW W. LO Founder and chief scientific officer Alpha Simplex Group LLC Cambridge, Mas. Assets under management: $800 million Forecast: "I think you'll see gridlock in the economy for the first two quarters of 2009," Mr. Lo said. In the third or fourth quarter, he thinks think money will come back to the industry with a vengeance. Pension funds are going to realize that their asset allocations are out of whack, Mr. Lo said. "I think the policies being discussed now are aimed an unfreezing the debt market. Once that becomes more liquid, bonds will start trading again. That will start an onslaught of managers in risk taking activities," Mr. Lo said. The 2009 finish line: The Dow: 8,600 The Nasdaq: 1,600 The S&P 500: 950 Tip sheet: Favorite fund: Natixis ASG Global Alternatives Fund (GAFAX). Favorite strategy: Global macro, distressed and equity market neutral. Favorite sector: Green energy technologies. Next big thing: "Beta replication, which involves the ability to sell short and take on common exposures like currency or commodity risk." Biggest concern: "My concern is that the policymakers won't move quickly enough to restore confidence in the marketplace." Reading, watching, listening to: Book: "Hot, Flat and Crowded; Why We Need A Green Revolution — And How It Can Renew America" by Thomas L. Friedman (Farrar Straus & Giroux, 2008). TV: CNN. Radio: National Public Radio. Websites: wsj.com, nytimes.com, ft.com.

Latest News

Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says
Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says

A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.

SEC bars New Jersey advisor after $9.9M fraud against Gold Star families
SEC bars New Jersey advisor after $9.9M fraud against Gold Star families

Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.

Navigating the great wealth transfer: Are advisors ready for both waves?
Navigating the great wealth transfer: Are advisors ready for both waves?

After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.

UBS Financial loses another investor lawsuit involving Tesla stock
UBS Financial loses another investor lawsuit involving Tesla stock

The customer’s UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client’s attorney.

Trump's one big beautiful bill reshapes charitable giving for donors and advisors
Trump's one big beautiful bill reshapes charitable giving for donors and advisors

An expansion to a 2017 TCJA provision, a permanent increase to the standard deduction, and additional incentives for non-itemizers add new twists to the donate-or-wait decision.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.