So I don’t know anything about CAIA really, but I do know a few things about hedge funds. It would be fun and entertaining to discuss substantive questions here. Is the CAIA exam so easy that nobody has any subjects to discuss?
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It’s pretty easy. I hope they significantly increase the difficulty and decrease the pass rates (after I pass that is).
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Although to be more accurate, I’d like to qualify that “easy” about CAIA with having completed CFA L1. Otherwise it could be a tough(er) exam. I still stand by my disgust of a scandalously high pass rate though. I don’t mind “value-investing” in the designation, but don’t want it to be that much of a value at the beginning stages. Anyways, I’m starting to read some academic papers, which actually comprise 50% or more of CAIA L2, really enjoy them, and am planning to read other academic papers as well in the Institutional Investor journals such as J. of Alternative Investments. I’ll try my best to come up with good topics of discussion, and maybe with some particular references to some papers. -------------------------------------------------- Maybe to start one is the discussion about the difference between quantitative analysis (QA) and technical analysis (TA). Schweser, in their answering of the learning objectives basing off of the writing of Kestner, seemed to say they were more different than the same. I contend that they are more the same than different. The main goal of both is to look at past price action in order to predict/infer the future, though in an imperfect manner. Assigning some confidence interval or other type of statistical construct gives you some numerical value, true, that does not exist in TA. However, the meaning you ascribe and the decision you make due to that quantity seems to be just as much of an art as, say for example, determining a pattern, trend, or support/resistance in TA. This is why I think QA is a close cousin of TA. Am I totally off base?
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About hedge funds, CAIA material tells you things which you know are wrong. For example there is a whole list of indices and they suffer from every bias that you can ever think of. But still returns from these indices are taken to prove that hedge funds sharpe ratio is better than s&p.
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So I am in the same boat as JoeyDVivre. I am trying to see how interesting this CAIA stuff is and if it is really something to think about. Mind you I do not come from a business background (went to a Liberal Arts School- hey sublimity someone labelled you as a liberal arts graduate and being an average, not sure whether they meant “mean, mode or median”?). I read an interesting article on Hedgefund and thought I would poke in here to see what all the commotion is about.
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CAIA is more expensive than CFA. I wonder why that is? Sure, HF folks may be paid higher than the industry average job (maybe), but I’m not sure that translates to fund of funds folks, and that seems to be the biggest target, based on the limited sample of questions I saw from the L1 example exam.
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2ndLuvGunner Wrote: ------------------------------------------------------- > So I am in the same boat as JoeyDVivre. I am > trying to see how interesting this CAIA stuff is > and if it is really something to think about. Mind > you I do not come from a business background (went > to a Liberal Arts School- hey sublimity someone > labelled you as a liberal arts graduate and being > an average, not sure whether they meant “mean, > mode or median”?). I read an interesting article > on Hedgefund and thought I would poke in here to > see what all the commotion is about. It’s especially funny that I was accused of being a liberal arts major by another liberal arts guy, essentially. MBA = Masters in li-“B”-eral Arts
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sublimity Wrote: ------------------------------------------------------- > 2ndLuvGunner Wrote: > -------------------------------------------------- > ----- > > So I am in the same boat as JoeyDVivre. I am > > trying to see how interesting this CAIA stuff > > is > > and if it is really something to think about. > > Mind > > you I do not come from a business background > > (went > > to a Liberal Arts School- hey sublimity someone > > labelled you as a liberal arts graduate and > > being > > an average, not sure whether they meant “mean, > > mode or median”?). I read an interesting > > article > > on Hedgefund and thought I would poke in here > > to > > see what all the commotion is about. > > It’s especially funny that I was accused of being > a liberal arts major by another liberal arts guy, > essentially. > > MBA = Masters in li-“B”-eral Arts Nice one. Given your sense of humor, you really must have gone to a Liberal Arts School.
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sublimity Wrote: ------------------------------------------------------- > 2ndLuvGunner Wrote: > -------------------------------------------------- > ----- > > So I am in the same boat as JoeyDVivre. I am > > trying to see how interesting this CAIA stuff > is > > and if it is really something to think about. > Mind > > you I do not come from a business background > (went > > to a Liberal Arts School- hey sublimity someone > > labelled you as a liberal arts graduate and > being > > an average, not sure whether they meant “mean, > > mode or median”?). I read an interesting > article > > on Hedgefund and thought I would poke in here > to > > see what all the commotion is about. > > It’s especially funny that I was accused of being > a liberal arts major by another liberal arts guy, > essentially. > > MBA = Masters in li-“B”-eral Arts Well put Sub, your art is more authentic than mine:)
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Joey, I also noticed that there is no real discussion on these forums except exam related. I have 3 observations … 1) There is not much audience for this designation yet, especially with HF&PE cooling down, the interest to get into alternative space will diminish. 2) AI folks typically do not discuss, may be out of fear of regulators or strategy competition etc. I am finding very difficult to recruit speakers for the AI events. Where as for Eq/FI topics, there are a tons. 3) Finally, AI folks have not heard of this forum, I came to know this (somewhat of a surprise) when we took a straw poll of CAIA guys (unscientific).
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I will probably not even use the CAIA designation after my name after having aced L1 and planning on acing L2, but I find this material interesting. I apologize that I am not disparaging nor ignoring the exam because it doesn’t not automatically ensure that I become a billionaire 1 second after I become officially designated. The exam prep provides structure for me to learn more efficiently. That is all. I’ve read much philosophy (of science) before, but don’t plan on getting a degree/designation in philosophy. Crazy, that the knowledge itself is intrinsically satisfying - but the world is a crazy place!!!
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Whoa, Sub. So I won’t become an overnight billionaire passing the CAIA? What a rip! In all seriousness, I don’t understand this negative stigma to the designation. Is it really that awful that I am furthering my education and skills beyond the CFA?
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Yes, I am also curious as to the negative stigma associated with this designation. Is it the high pass rates that make it less of a commodity and more of a “satisfaction of intellectual knowledge?”
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CFA started off with a very high pass rate back in the day…
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CAIA is what, 5 years old? Pass rates are discouraging, I hope a downward trend emerges in the coming years as it becomes more popular.
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http://www.cfainstitute.org/cfaprog/pdf/candidate_results.pdf Gold Standard started of at 94%
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jcrick Wrote: ------------------------------------------------------- > http://www.cfainstitute.org/cfaprog/pdf/candidate_ > results.pdf > > Gold Standard started of at 94% very interesting. Can we automatically assume that CAIA will follow the path of the CFA in terms of % rates?
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It’s hard to say…the validity and value of the charter itself will be very much dependent on the significance of “alternative investments” in the coming post-crisis years. There’s a bit of a psychological aspect at play in terms of the candidates taking CFAs and CAIAs. We tend to get drawn to a designation that is difficult to obtain, so that successfully passing it is a form of achievement and self worth. Right now, because the CAIA is relatively easy (as it naturally should be in its early years), people may be hesitant to take the exam right away. However, based on the history of CFA, I would say the CAIA would take a similar path. As the exam gets harder, and people start to catch on to the notoriety of its “failure rate” (see CFA for example), people will be automatically drawn towards it. At some point, the failure rate may jump from 20% to as high as 50%, which in turn will draw on more curious exam takers who want to give it a shot. At that point, the CAIA may have incorporated a level III exam and the questions will be much more difficult in nature. A good analogy would be going to a nightclub. When you see it is difficult to get into the club, you want to go inside even more. For those who are taking the CAIA right now, embrace this moment, as it could easily turn into a much more difficult exam in the future. Afterall, if you look around, there isn’t a whole lot of competition out there. Besides the CAIA, the CHA has launched their own version of a chartered examination, but it doesn’t have the support and backing of large organizations like AIMA and the ISDA. Of course this is coming from an exam taker myself, and I am optimistic about the CAIA. But what’s the worse that can happen? I paid money on a designation that I already earned, and I have learned a great deal from the study materials. It’s a no-lose situation. Just my two cents.
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That’s definitely a probable situation tekara. I also get more value out of the content more then the letters, so I a m not extremely worried about it. Thanks for the info, that was a great write-up.
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Does anyone here use any of the quantitative trading strategies discussed in Level 2?
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