Latest news with #retailinvestors
Bloomberg
16 hours ago
- Business
- Bloomberg
Quant Hedge Fund CFM Eyes Canada Expansion With Toronto Office
French quantitative hedge fund Capital Fund Management SA opened an office in Toronto to attract wealthy investors in Canada. Steve Shepherd, CFM's head in the country, said he's seeking to partner with a local firm in order to market Canada-domiciled versions of its existing strategies to retail investors. The firm wants those versions to be available next year.
Bloomberg
2 days ago
- Business
- Bloomberg
Quant Traders That Dominate US Options Market Move in on Europe
The option market makers that dominate US trading are taking a bigger share of volume in Europe. While the tariff-driven market turmoil in April boosted trading on both sides of the Atlantic, Europe remains far behind. Even with talks about the end of 'US Exceptionalism' and investment flows directed away from the country, Europe lacks the abundant retail demand that drives a robust, relatively transparent options market in the US.
Yahoo
2 days ago
- Business
- Yahoo
Retail stock market investors are no longer the ‘dumb money'
In the past, retail investors were often viewed as the so-called 'dumb money' in the stock market (institutions were seen as the 'smart money'). This is because they would typically buy stocks near the top of the market and sell near the bottom. In recent years however, there's been a major shift in the way retail investors go about deploying their capital. Here's a look at why this class of investors is smarter than many professionals used to think. In the last few major stock market meltdowns, retail investors have stepped in to buy shares at exactly the right time. For example, in early 2020 when stocks were tanking due to concerns over the impact of the coronavirus, retail investors stepped up to buy. At the time, there was a notable surge in activity from these investors, with many 'buying the dip' (some research indicates it was retail investors who actually stabilised the market). More recently, when stocks crashed in April this year due to tariff concerns, retail investors stepped up to buy again (while many institutions were offloading equities). In the US, retail investors made $4.7bn worth of net equity purchases when stocks tanked on 3 April – the highest daily inflow in the past decade. On both occasions, those who bought during the market weakness would have most likely have done very well. For example, let's say that a UK investor had snapped up some shares in the iShares Nasdaq 100 UCITS ETF (LSE: CNDX) when share prices were down. This is an ETF that tracks the tech-focused Nasdaq 100 index and offers exposure to Apple, Amazon, and Nvidia and many other well-known tech stocks. I see it as a good product to consider as a long-term core portfolio holding (despite the fact that it lacks sector diversification and is therefore more risky than some other index trackers). In March 2020, this ETF was trading for under $400. Yet by late 2021, it was trading above $900 – more than 100% higher. Meanwhile, in April this year, the ETF was trading below $1,000. Today however, it's sitting above $1,200 – more than 20% higher. So there were big gains on offer for those who were willing to buy when there was fear in the air, as many retail investors did. Why have retail investors suddenly got much better at investing? Well, I think it comes down to information. In recent years, investing websites (like The Motley Fool), YouTube channels, and podcasts have democratised investing. Today, it's really easy to learn the basics. Through these kinds of resources, retail investors have learnt that the best time to buy stocks is when there's panic in the air. They've also learnt about other key concepts such as portfolio diversification and the importance of investing for the long term. It's great to see. Because when it's done properly, investing in the stock market can be a great way to build wealth for the future. The post Retail stock market investors are no longer the 'dumb money' appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Edward Sheldon has positions in Apple, Amazon, and Nvidia. The Motley Fool UK has recommended Amazon, Apple, and Nvidia. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Globe and Mail
4 days ago
- Business
- Globe and Mail
OSC looks to improve access to private markets while investor advocate urges caution
The Ontario Securities Commission (OSC) is moving ahead with a project to make private market investment funds more accessible to investors, a proposal supported by asset managers while investor advocates raised concerns. The regulator said Thursday that it's developing a LaunchPad project through its innovation office to introduce new investment fund products with exposure to long-term assets. The project will allow firms to work with the OSC and receive exemptive relief to develop alternative investment funds for retail investors. The move follows a consultation seeking input on a framework to give individual investors access to 'long-term asset funds' comprised primarily of non-public assets. While many asset managers supported the proposal, other organizations raised concerns. The OSC's Investor Advisory Panel (IAP) said in its annual report released this week that it's concerned about the rising interest in alternative investment products, as private markets lack transparency and offer less investor protection than public markets. Any efforts to increase access to private markets should consider the risks to retail investors, it said. The OSC said Thursday that exemptive relief decisions under the project would require 'bespoke investor protection controls based on the specific details of each fund and product.' The IAP said in its submission to the OSC consultation that the 'nature and structure of long-term illiquid assets does not render them a suitable investment for a large swath of the retail investing public.' However, the IAP added in the submission that not all retail investors need to be restricted to public markets and that an allocation to 'long-term assets' within retirement plans may be suitable for investors with a long time horizon. If the OSC goes ahead with the proposed fund structure, the IAP recommends enhanced risk disclosure that explains the investments' illiquid nature and redemption costs clearly. The IAP also calls for clear fee structures that explain performance fees. OSC chief executive officer Grant Vingoe said the LaunchPad project would provide new opportunities for firms and investors while providing oversight and protection. 'The investment landscape is shifting, and retail investors are increasingly looking to diversify their portfolios,' he said in a news release. The IAP's annual report also noted concerns about unintended consequences from the client-focused reforms, which introduced enhanced know-your-client and know-your-product rules in 2021. Three of the big banks responded to the rules by restricting branch-level advisors and financial planners to selling their in-house proprietary products. The IAP warned that limited product shelves may 'reduce interest and investment in the advisory channel.' The panel also raised the issue of advisor titles causing confusion, especially at the bank branch level. '[A]n investor who speaks to a bank branch-level employee, who uses the term 'advisor' in their title, may conclude, based on that title, that the employee is required to act in the investor's best interest,' it stated in the report. 'These issues need to be addressed.' Broader lens: Technology stocks have rebounded sharply after being roiled by uncertainty and recessionary fears triggered by U.S. President Donald Trump's tariffs. Although fund managers are very upbeat on some of these mega-caps, they're also betting on other names to carry the tech baton. Shirley Won reports. Broader service: Clients have moved on from transactional relationships and are now demanding an advisor who is relational. But what exactly is a relational advisor? Julia Chung, co-founder and chief executive officer of Vancouver-based Spring Planning Inc., explains. Broader diversifiers: Most investors understand that diversification can help preserve portfolio values when markets are volatile. But an asset mix that worked during one market downturn may not have the same stabilizing effect in another. Brenda Bouw reports. Real estate: The co-founders of now-defunct syndicated mortgage company Fortress Real Developments Inc. have been found guilty of fraud after a lengthy criminal trial. Reinvest: Prominent Canadian business leaders with interests in the defence industry are calling for a major reinvestment in the sector in Canada, arguing the country can boost its prosperity and security in tandem. Rethink: Canada's business community is calling on Prime Minister Mark Carney to review the digital services tax that has triggered the U.S. government's proposed retaliatory taxes on Canadian companies and investors in U.S. securities. The proposal could cost investors who own U.S. securities up to $81-billion in additional taxes over seven years.
Yahoo
5 days ago
- Business
- Yahoo
Straumann Holding AG's (VTX:STMN) largest shareholders are retail investors with 37% ownership, insiders own 32%
Significant control over Straumann Holding by retail investors implies that the general public has more power to influence management and governance-related decisions The top 12 shareholders own 51% of the company 32% of Straumann Holding is held by insiders This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Every investor in Straumann Holding AG (VTX:STMN) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 37% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Meanwhile, individual insiders make up 32% of the company's shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. In the chart below, we zoom in on the different ownership groups of Straumann Holding. See our latest analysis for Straumann Holding Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. We can see that Straumann Holding does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Straumann Holding, (below). Of course, keep in mind that there are other factors to consider, too. Straumann Holding is not owned by hedge funds. The company's largest shareholder is Thomas Straumann, with ownership of 16%. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 5.1% by the third-largest shareholder. A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our most recent data indicates that insiders own a reasonable proportion of Straumann Holding AG. Insiders own CHF5.5b worth of shares in the CHF17b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders. With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Straumann Holding. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
