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Trends Watch: September 22, 2016

EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies Snyderman.  

This week, Elana talks to Simon Wajcenberg, CEO, K1T Capital.   

What is your outlook on the alternative investment industry? 

I am excited by the growth in the alternative investment industry. I believe that the industry opens up new and interesting opportunities for investors and as the industry is competitive, fees will be driven down over time and returns will improve for investors. K1T Capital is a pure quant investment manager and everything we do is predicated by our unique algorithm which enables us to predict turning points in market cycles. I believe there will be continued growth in investment into quantitative investment strategies as they continue to outperform the market. 

What are the next steps for the EU post-Brexit? 

Since we are a pure quant strategy trading U.S. equities we do not really have a view on this. I would say the EU should start preparing trade agreements with the UK as soon as possible to ensure a smooth transition. 

What keeps you up at night? 

We are a pure quant long/short equity strategy. As such, we can profit from both rising and declining markets. The K1T algo is signaling a top for U.S. equities at around 2200 for the S&P500. This could result in a severe market correction. We believe the asset bubble created by monetary easing and negative interest rates is about to be pricked, although the K1T investment strategy would likely benefit from such a market correction. The bubble bursting could have severe consequences for millions of people globally.

Elana Margulies-Snyderman is an investment industry reporter and writer who develops articles, opinion pieces and original research designed to help illuminate the most challenging issues confronting fund managers and executives.

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