http://allaboutalpha.com/blog/2006/10/21/merrill-lynch-new-alternatives-in-alternative-investing/ A finance blog about hedge funds, portable alpha and alternative investing. Mon, 13 Feb 2012 11:26:54 +0000 http://wordpress.org/?v=abc hourly 1 http://allaboutalpha.com/blog/2006/10/21/merrill-lynch-new-alternatives-in-alternative-investing/comment-page-1/#comment-1635 All About Alpha » Blog Archives » Managed Accounts: Not just for breakfast any more Thu, 15 Mar 2007 01:47:45 +0000 http://allaboutalpha.com/blog/2006/10/21/merrill-lynch-new-alternatives-in-alternative-investing/#comment-1635 [...] Interestingly, Hookway says the drive toward managed account-enabled DIY funds of funds is gutting the “plain vanilla funds of funds” sector.  In order to survive, he says, these funds of funds are either a) becoming more specialized or b) becoming index providers (a development that is reminiscent of the mutual funds industry). [...] [...] Interestingly, Hookway says the drive toward managed account-enabled DIY funds of funds is gutting the “plain vanilla funds of funds” sector.  In order to survive, he says, these funds of funds are either a) becoming more specialized or b) becoming index providers (a development that is reminiscent of the mutual funds industry). [...]

]]> http://allaboutalpha.com/blog/2006/10/21/merrill-lynch-new-alternatives-in-alternative-investing/comment-page-1/#comment-917 All About Alpha » Blog Archives » “Accidental Alpha” Fri, 02 Mar 2007 00:04:11 +0000 http://allaboutalpha.com/blog/2006/10/21/merrill-lynch-new-alternatives-in-alternative-investing/#comment-917 [...] Will hedge funds succumb to the same fate as large chunks of the mutual fund industry: commoditization through ETFs and index funds?  Merrill Lynch seemed to think so last October.  And now, so do academics William Fung and David Hsieh.  This research paper provides a “tool kit” to identify alternative beta, distinguish it from its hard-to-copy cousin, alternative alpha, and replicate it using basic trading rules that the authors say “capture the essence of hedge fund strategies”.  These trading rules explain what they call an “accidental alpha” produced by traditional (linear) factor regressions.  [...] [...] Will hedge funds succumb to the same fate as large chunks of the mutual fund industry: commoditization through ETFs and index funds?  Merrill Lynch seemed to think so last October.  And now, so do academics William Fung and David Hsieh.  This research paper provides a “tool kit” to identify alternative beta, distinguish it from its hard-to-copy cousin, alternative alpha, and replicate it using basic trading rules that the authors say “capture the essence of hedge fund strategies”.  These trading rules explain what they call an “accidental alpha” produced by traditional (linear) factor regressions.  [...]

]]> http://allaboutalpha.com/blog/2006/10/21/merrill-lynch-new-alternatives-in-alternative-investing/comment-page-1/#comment-58 All About Alpha » Blog Archives » Bursting Another Sort of Bubble Sat, 28 Oct 2006 11:37:15 +0000 http://allaboutalpha.com/blog/2006/10/21/merrill-lynch-new-alternatives-in-alternative-investing/#comment-58 [...] Firstly, as we have discussed on this blog, the industry became quite concentrated between 2000 and 2006 (as the mutual fund industry did years earlier).  As several respected institutional investors have told us recently, there are really only about 700-1,000 funds that would make it onto an institution’s investment radar screen (not 9,000).  And according to research by Alpha Magazine, large segments of the industry actually shrank between 2004 to 2005.  [...] [...] Firstly, as we have discussed on this blog, the industry became quite concentrated between 2000 and 2006 (as the mutual fund industry did years earlier).  As several respected institutional investors have told us recently, there are really only about 700-1,000 funds that would make it onto an institution’s investment radar screen (not 9,000).  And according to research by Alpha Magazine, large segments of the industry actually shrank between 2004 to 2005.  [...]

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