News & Media
Darwinian Investing In A World Without Price Signals2019
The markets and investing have been compared to Darwinian selection and evolution by a number of observers (e.g., Jonathan Burton, 2009; Chris Dillow, 2014; Andrew Lo, quoted by Peter Dizikes, 2017; Charles Munger, quoted by Lee Kuan Yew, 2017; Justin Kuepper, 2019). Andrew Lo of MIT's Sloan School of Management has written a thorough and illuminating book on the subject, laying out an argument for a behavioral investment theory that can serve as a better explanation of market behavior than mere random walk theory alone (Andrew Lo, 2017; Adaptive Markets: Financial Evolution at the Speed of Thought; Princeton University Press, Princeton, NJ, 483 p.).
Mass. biotech funding is down, after ‘insane’ 20182019
People in the Massachusetts biotechnology sector figured that the record-setting success of 2018 would be hard to match. So far, they're proving right.
After collectively raising $4.8 billion of venture capital last year, an all-time high, Bay State biotechs are on pace to raise less than $3 billion in 2019, according to a report published Tuesday by the Massachusetts Biotechnology Council, a leading industry group.
Elizabeth Steele, MassBio's vice president of programs and global affairs, said the venture climate is merely "coming back to normal" after an "insane" 2018. A total of about $3 billion would be in line with the average from 2015 to 2017.
But Andrew Lo, a biotech investor who directs the MIT Laboratory for Financial Engineering, said he is "a bit more concerned."
Se buscan banqueros que trabajen bien con robots2019
Los profesores de negocios y finanzas que preparan a sus estudiantes para futuras carreras en la banca también están viendo la tendencia. Científico de datos es la "función más importante" ahora para los empleadores, asegura Andrew Lo, director del Laboratorio de Ingeniería Financiera de MIT en Cambridge, Massachusetts.
A Breakthrough Is Claimed in Systemic Risk Monitoring2019
More than 10 years since the global financial market meltdown, regulators and central bankers are confident that a stronger and well capitalized banking system is better able to withstand another major systemic shock. Yet proven measures of systemic risk, and particularly predictive tools that cut through market noise and volatility, remain hard to come by. Bank Holdings and Systemic Risk, a paper published last year on the Federal Reserve Board website, puts forward what its co-authors claim is a unique and effective statistical approach that can monitor for systemic risk in banking. It can also be utilized for tracking change and risk in other complex sectors such as mutual funds, real estate investment trusts (REITs) and broker-dealer holdings.
Part One: The changing world of investing2019
Listen to Part 1 of our latest sponsored Top Traders Round Table podcast featuring Andrew Lo, the Charles E. and Susan T. Harris Professor at the MIT Sloan School of Management, and Sol Waksman, the President of the Backstop BarclayHedge Division. These guests have years of experience in the world of investing and have watched the finance industry as it has gone through many changes.
Index Funds Are King, But Some Indexers Are Passive-Aggressive2019
Vanguard Group founder Jack Bogle, who died on Jan. 16 at age 89, ushered in an era of low-cost investing for the many. He launched the first index mutual fund for individual investors at the end of 1975 for the purpose of passive investing: Skip the stockpicking, save on fees, and simply ride the ups and downs of the overall market. His fringe idea has become mainstream. Sometime this year, analysts at Morningstar Inc. say, assets in passively managed U.S. equity funds are likely to surpass assets in actively managed ones. By pushing down fees across the industry, Bogle may have saved American investors $1 trillion over his lifetime, calculates Bloomberg Intelligence analyst Eric Balchunas.
Markets, Gaming, Investing2019
On the Thursday, January 24 edition of Bloomberg Baystate Business we spoke with Bloomberg Intelligence gaming and lodging analyst Brian Egger about MGM-Springfield, the latest on the Wynn saga, and sports betting. Rob Almeida of MFS stopped by to talk about the markets. Bloomberg News endowments reporter Michael McDonald joined us to talk about his story on Baupost Group’s Seth Klarman, who sees opportunity in the markets. Boston Business Journal real estate editor Catherine Carlock talked about the commercial real estate market in Boston. Finally, MIT’s Andrew Lo talked about technology, finance and investing. Hosts: Peter Barnes, Janet Wu and Pat Carroll. Producer: Dan Pierce.
MIT Targets Life Sciences with Clinical Trial Analytics Project2019
The MIT Laboratory for Financial Engineering (LFE) and Informa Pharma Intelligence have launched an initiative to provide timely and accurate estimates of the risks and benefits of clinical trials to the entire life sciences ecosystem.
Project ALPHA (Analytics for Life-sciences Professionals and Healthcare Advocates) aims to help investors, payers, regulators, and biopharmaceutical companies better evaluate the opportunities of biomedical research and development.
Project ALPHA’s first project will be the further development of clinical success rate metrics, based on algorithms developed by MIT researchers and published in Biostatistics in January 2018.
MIT LFE with Informa Pharma Intelligence launches project ALPHA2019
The MIT Laboratory for Financial Engineering (LFE) and Informa Pharma Intelligence announced Project ALPHA (Analytics for Life-sciences Professionals and Healthcare Advocates), an initiative to provide timely and more accurate estimates of the risks and rewards of clinical trials to the entire biopharma ecosystem. The goal of Project ALPHA is to accelerate biomedical innovation by helping investors, regulators, payers, and biopharmaceutical companies better assess the opportunities of biomedical R&D, allowing all stakeholders to manage their investments more efficiently.
"More accurate risk metrics will eventually lead to fewer big failures, faster approval times, cost savings to the entire healthcare system and more investment capital for developing breakthrough therapies," says Andrew W. Lo, Charles E. and Susan T. Harris Professor at the MIT Sloan School of Management and director of the LFE, "all of which means more, and better, therapies to patients sooner."
Impact Investing Could Accelerate the Fight Against Cancer2018
A new generation of philanthropists, whose wealth was created via entrepreneurship in technology-driven fields, has the unique opportunity to make a real difference in speeding the pace of progress in the fight against cancer. Not content with having hospital pavilions named for them or with giving large, open-ended gifts for academic research, they want to use their wealth to have a direct and visible impact on patients’ health. Research we have conducted has revealed a variety of new, highly impactful investment approaches that can help accelerate the pace of the development, approval, and commercialization of new cancer therapies. By embracing these new approaches this new generation of philanthropists has the opportunity to truly help cure cancer.
Wall Street Needs More Market Indexes. Seriously.2018
People tend to fear the wrong things when it comes to indexing and exchange-traded funds. Take the recent hand-wringing over an Index Industry Association report that there are now 3.7 million market indexes, an increase of about a half a million from last year. The Twitter commentary was predictable, with observations such as “peak passive” and “smells like CDOs.
Sanford C. Bernstein — the firm that famously compared passive investing with Marxism in a research note and then proceeded to make two indexes and launch two ETFs tracking them — was so triggered by that number they wrote a satirical story mocking the quixotic quest for the perfect index.
6 Trends and Takeaway Messages from the 2018 AI World Conference2018
BOSTON — Cold weather this week didn’t matter to the crowds at the AI World conference here, as activity around artificial intelligence continues to heat up. Over three days, more than 2,200 attendees learned about the latest advances in machine learning, deep learning, and the industries being affected by AI.
While most of the conference focused on AI’s impact on the healthcare, pharmaceutical, and enterprise software markets, a few sessions discussed industrial automation efforts, including the Industrial Internet of Things (IIoT), manufacturing, and autonomous vehicles.
Here are six themes from this year’s AI World, as observed by Robotics Business Review editors attending the event:
A biologia evolutiva é a chave para entender os mercados, diz Andrew W. Lo2018
Andrew W. Lo é um autor prolífico. Professor de finanças na Sloan School of Management, do Massachusetts Institute of Technology (MIT), ganhou reconhecimento do público, por causa de seu livro A non-random walk down Wall Street ( Uma caminhada não aleatória por Wall Street , sem edição em português), e dos profissionais, por seus artigos em periódicos importantes de finanças e economia. Lo conquistou muitos prêmios em sua carreira.
Annual Reviews, MIT Golub Center and NYU Stern Co-Host “2008 Financial Crisis: A Ten-Year Review” Conference2018
Annual Reviews, MIT Golub Center for Finance and Policy (GCFP) and New York University Stern School of Business (NYU Stern) convened for a two-day conference, “2008 Financial Crisis: A Ten-Year Review,” spotlighting the perspectives of those with expert vantage points of the crisis. New review articles focused on the 2008 financial crisis in the Annual Review of Financial Economics Volume 10 were presented. The conference program covered topics including bailouts and their consequences, accounting issues that impact financial stability, trust and the future of finance, asset pricing, leverage and systemic risk.
Booming U.S. economy fueling prosperity throughout industry2018
Thus far, 2018 has proven to be a prosperous year for many in the industry, thanks in no small part to the strength of the U.S. economy.
And while economists are predicting a slowdown in growth next year, the next 12 months, barring unforeseeable incidents, should remain strong, with few signs of a pullback on the horizon.
"The economy is clearly strong," said Andrew Lo, a professor at MIT's Sloan School of Management and director of the MIT Laboratory for Financial Engineering. "We've got pretty low unemployment, very reasonable inflation, and all eyes are on the stock market, which has done quite well. I think, overall, both in the United States and more broadly around the world, things are going quite well. In that kind of an environment, it's no wonder people are confident about the future and willing to spend money on things like vacation and travel."