http://allaboutalpha.com/blog/2007/06/20/operational-alpha/ A finance blog about hedge funds, portable alpha and alternative investing. Thu, 09 Feb 2012 19:03:08 +0000 http://wordpress.org/?v=abc hourly 1 http://allaboutalpha.com/blog/2007/06/20/operational-alpha/comment-page-1/#comment-36986 Pineapple Watch: Australian Finance and Investing News blog » Hedge funds: Useful alpha (returns) tool, or a money skimmer? Thu, 01 Nov 2007 08:51:37 +0000 http://allaboutalpha.com/blog/2007/06/20/operational-alpha/#comment-36986 [...] It’s often cited that transaction costs erode any ‘edge’ hedge funds have over the market. This is a concern, because transaction costs shave both profits and add to losses, greatly harming the cumulative time effect that investing has. The key is to figure out the right mix. Allaboutalpha rightly points out that high managerial and performance fees can cripple a hedge funds ability to give investors returns. “Once largely overlooked, the impact of realized transaction costs on investment performance is now well recognized. Indeed, transaction costs can substantially reduce, or even eliminate, the notional returns to an investment strategy.” [...] [...] It’s often cited that transaction costs erode any ‘edge’ hedge funds have over the market. This is a concern, because transaction costs shave both profits and add to losses, greatly harming the cumulative time effect that investing has. The key is to figure out the right mix. Allaboutalpha rightly points out that high managerial and performance fees can cripple a hedge funds ability to give investors returns. “Once largely overlooked, the impact of realized transaction costs on investment performance is now well recognized. Indeed, transaction costs can substantially reduce, or even eliminate, the notional returns to an investment strategy.” [...]

]]> http://allaboutalpha.com/blog/2007/06/20/operational-alpha/comment-page-1/#comment-12071 Thursday links: operational alpha « Abnormal Returns Thu, 21 Jun 2007 16:18:07 +0000 http://allaboutalpha.com/blog/2007/06/20/operational-alpha/#comment-12071 [...] All About Alpha on the growing relevance of “operational alpha” in a increasingly complex trading world. [...] [...] All About Alpha on the growing relevance of “operational alpha” in a increasingly complex trading world. [...]

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