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Hedge funds training 16-year-old interns in Singapore

SINGAPORE (BLOOMBERG) - In the dog-eat-dog world of hedge funds, giving an internship to a 16-year-old is almost unheard of. But when local talent is hard to find, teaching a minor how to generate alpha can be a worthwhile investment. And so last year, Raffles Girls School student Cao Yi Ke spent two weeks at Modular Asset Management, a nearly US$1 billion (S$1.34 billion) Singaporean hedge fund spun out of Millennium Management. She crunched data on spreadsheets, chatted with veterans and watched nerve-racking meetings where money managers defended their investment ideas from peers. Please subscribe or log in to continue reading the full article.

Death of 60/40 Portfolio Makes Returns Tougher for Wealth Funds

(Bloomberg) Two of the world’s largest sovereign wealth funds say investors should expect much lower returns in the future in part because the typical balanced portfolio of 60/40 stocks and bonds no longer works as well in the current rate environment.Singapore’s GIC Pte and Australia’s Future Fund said global investors have relied on the bond market to simultaneously juice returns for decades, while adding a buffer to their portfolio against equity market risks. Those days are gone with yields largely rising.“Bonds have been in retrospect this gift,” with a 40-year rally that has boosted all portfolios, said Sue Brake, chief investment officer of Australia’s A$218.3 billion ($168.4 billion) fund. “But that’s over,” she added, saying “replacing it is impossible I don’t think there’s any one asset class that could replace it.”Thanks to the declining returns of bonds, the model 60/40 portfolio

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