Porters Five Forces Applied to Hedge Funds
| Jun 8th, 2007 | Filed under: CAPM / Alpha Theory, Hedge Fund Industry Trends | By: Alpha Male |
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George Main is one such manager. Fiercely Canadian, he laments the fact that he has rarely made any allocations to Canadian hedge fund managers out of his nearly $2 billion fund of hedge funds at Diversified Global Asset Management (DGAM).
Some of you might recognize George’s name from his recent stint as one of the speakers at GAIM USA in Florida last winter. Main is due to keynote Friday’s “HFM Live Canada” agenda with an address on alternative beta.
His approach to investing is somewhat unique. Most hedge fund investors will begin with the decision to invest in a single manager or a fund of funds. Once this critical first step has been taken, the investor will usually select a suite of hedge fund strategies in which to invest. After this, they will seek out the best managers within each hedge fund strategy. When they have selected appropriate managers, they will typically inquire about their edge – the fundamental economic engine of their out performance.
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