NEWSLETTER of August 25, 2023

The following content has been added at finexpert:

Citi
FAMILY OFFICE INVESTMENT REPORT Q2 2023
Using data from our family office clients worldwide, this report summarizes recent portfolio positioning and shifts at global and regional levels. It also examines this activity in light of Citi Global Wealth’s short- and long-term asset allocations. >more

KfW Research
KFW-KREDITMARKTAUSBLICK AUGUST 2023
Following record growth in the previous year, new lending from German banks to enterprises and self-employed persons in the first quarter remained just barely below the level of the same quarter last year. Available data already indicates stagnation for the second quarter. Banks remain cautious in their lending practices but an end to the tightening of lending criteria appears to be in sight. >more

Noerr & TU München
KONZERNTRANSFORMATION 2023
Corporate acquisitions are the most important instrument for group transformation. This is the result of a study by the law firm Noerr and the Technical University (TU) of Munich. The focus is on revenue growth through innovation and digitization. The scientific study is based on extensive interviews with 21 top managers from various industries and sheds light on the key issues surrounding corporate transformation. >more

KfW Research
KFW VENTURE CAPITAL-DASHBOARD Q2 2023
In Q2 2023, German startups raised a total of almost EUR 2.5 billion in 266 financing rounds. Thus, deal volume in 2023 increased for the second quarter in a row (+25% QoQ). In contrast, the number of deals declined slightly (-8%). After the cooling in 2022, the German VC market has thus stabilized significantly for the time being in the first half of 2023. Viewed over the entire first half of 2023, deal volume was again higher than in the previous 6 months. >more

TEMPERATURE SHOCKS AND INDUSTRY EARNINGS NEWS
Jawad M. Addoum, David T. Ng, and Ariel Ortiz-Bobea
2023
Climate scientists project a rise in both average temperatures and the frequency of temperature extremes. We study how extreme temperatures affect companies' earnings across different industries and whether sell-side analysts understand these relationships. We combine granular daily data on temperatures across the continental U.S. with locations of public companies' establishments and build a panel of quarterly firm-level temperature exposures. Extreme temperatures significantly impact earnings in over 40% of industries, with bi-directional effects that harm some industries while others benefit. Analysts and investors do not immediately react to observable intra-quarter temperature shocks, but earnings forecasts account for temperature effects by quarter-end in many, though not all, industries. >more

MACHINE-LEARNING THE SKILL OF MUTUAL FUND MANAGERS
Ron Kaniel, Zihan Lin, Markus Pelger, and Stijn Van Nieuwerburgh
2023
We show, using machine learning, that fund characteristics can consistently differentiate high from low-performing mutual funds, before and after fees. The outperformance persists for more than three years. Fund momentum and fund flow are the most important predictors of future risk-adjusted fund performance, while characteristics of the stocks that funds hold are not predictive. Returns of predictive long-short portfolios are higher following a period of high sentiment. Our estimation with neural networks enables us to uncover novel and substantial interaction effects between sentiment and both fund flow and fund momentum. >more