Study finds that factor timing isnât actually a huge source of hedge...
In the never-ending search for the source of hedge fund alpha, some have looked to factor timing. But a new study suggests that this, like many other possible explanations, falls short of explaining...
View ArticlePerformance-based compensation: Does size really matter?
A new academic paper suggests managers open and close their funds to new investments to keep performance up - and to keep fees flowing in. We wonder whether hedge fund champion John Paulson would agree.
View ArticleFiduciary Alpha
Fiduciaries think of a client's needs before their own - sacrificing the latter if required. But does the requirement for a hedge fund manager to put their client's interests before their own help or...
View ArticleTurn that tap off! The search for illiquid investments is onâ¦
It's getting easier to lead an institutional manager to illiquid strategies - not water - according to a recent survey by eVestment Alliance and Casey Quirk. But after what happened in 2008, why would...
View ArticleGIPS to Hedge Fund Managers: No worries. Youâre already covered (mostly).
The arbiters of quality investment reporting have released a new set of draft guidelines of hedge fund managers. Most of it is simply a restatement of existing guidelines, but some is designed...
View ArticleCongratulations! You got a raise!
Everyone is talking about how institutional investors are beating up hedge fund managers on fees these days. But it seems the empirical evidence suggests otherwise. In fact, dropping fees may be the...
View ArticleNote to migrating ducks: Watch your flight path
Predictable patterns are easy game for hedge funds.
View ArticleFrom poison pens to poison pills: New, improved, and definitely more bitter...
Much to the chagrin of activist hedge fund managers, poison pills are making a comeback - in new and more lethal forms. For managers in particular, reading the label and following the directions is...
View ArticleThe Interaction of Demand and Supply Curves for Alpha
If only the marketplace for alpha fit neatly into a model from an Economics textbook.
View ArticlePE Firms: Sweet little bunnies or the âKiller Rabbit of Caerbannogâ
Private equity managers arguably bit off more than they could chew in the pre-crisis, credit-crunch world. Now, several years on, PE-funded companies have managed to survive, mutate and thrive,...
View ArticleStudy: University endowments really are smarter investors!
The University of Texas endowment recently revealed that it had nearly $1 billion of gold hidden away in their basement. This might be a good time to revisit whether US endowments are really that smart.
View ArticleâCrisis Alphaâ
Some types of alpha have a sting in the tail: they hibernate or head south when tail risks appear, while other types of alpha thrive on panics. Crisis alpha is about celebrating low Sharpe ratios, and...
View ArticleWidely followed survey finds hedge funds with âhighest level of...
Hedge funds' ability to persevere and thrive following the past few years is a sign they'll be around for the long haul - a sentiment confirmed by Rothstein Kass's latest annual hedge fund survey.
View ArticleSurvey reveals hedge fund investors are changing channels
All is calm and good on the surface of the hedge fund industry, with AUM collectively continuing to rise. Underneath, however, are some gyrations that are changing the composition of alternatives...
View ArticleAlpha not âdeadâ â just not always better than beta (as...
A recent research note concludes that alpha (as a performance measure) passed away recently after along battle with beta-tosis and several other ailments. But wait! Did Alpha's nose just twitch?
View ArticleCan networking actually be a bad thing for hedge funds?
A recent study suggests to at least one mass media outlet that hedge funds should mind their own business and not by nosy about other hedge funds' trades. But a closer reading of the study suggests to...
View ArticleNo longer pariahs, funds of hedge funds making a comeback with investors
Funds of hedge funds aren't exactly being embraced with open arms again just yet, but they are no longer the pariahs they were, according to a recent recent report.
View ArticleHedge fund investors waking up in Land of the Rising Sun?
While still struggling, Japan-focused hedge funds were finally beginning to show some promise, according to a recent report. The unfortunate events of March have created new challenges for the industry.
View ArticleSovereign Wealth Funds: In it for the money or the policy objectives?
Most sovereign wealth funds have two objectives: to make money and to achieve the state's economic development objectives. Two scholars recently tried to measure the possible "tension" between these...
View ArticleWhen the Leverage Levee Breaks and real estate liquidity recedes
Your house is grounded, so it should be stable. But what if the water table is rising? There could be leaks in the basement. That analogy explains why real estate as an asset class can be highly...
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