Comments on: Funds of funds knocked flat by Madoff. But are they down for the count? http://allaboutalpha.com/blog/2009/08/27/funds-of-funds-knocked-flat-by-madoff-but-are-they-down-for-the-count/ 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 By: Rene Levesque http://allaboutalpha.com/blog/2009/08/27/funds-of-funds-knocked-flat-by-madoff-but-are-they-down-for-the-count/comment-page-1/#comment-195374 Rene Levesque Fri, 28 Aug 2009 18:29:35 +0000 http://allaboutalpha.com/blog/?p=5653#comment-195374 One should not be surprised by the outcome of events. A market disruption further made obvious the problem that plagued the investors side, and particularly among the fund of funds. Reasons: - many did not realize the fact that not all hedge funds deploy hedge fund strategies. - the resources that hedge fund investors have deployed to evaluate and screen throughout this universe of hedge funds are for the most part young investment professionals with little or no experience, and indeed the actuaries; but worse, none with trading experience. - the unfortunate fact that has transpired on the investor side reveals that the hedge fund investor community has deployed an inexperienced scouting pool that has far too often and grossly mistaken eloquence for competence. This has resulted in high rates of false-positive and false-negative diagnostics of hedge funds thus ensuing with the unfortunate headlines plaguing this industry; again, particularly fund of funds. One should not be surprised by the outcome of events. A market disruption further made obvious the problem that plagued the investors side, and particularly among the fund of funds.

Reasons:
- many did not realize the fact that not all hedge funds deploy hedge fund strategies.
- the resources that hedge fund investors have deployed to evaluate and screen throughout this universe of hedge funds are for the most part young investment professionals with little or no experience, and indeed the actuaries; but worse, none with trading experience.
- the unfortunate fact that has transpired on the investor side reveals that the hedge fund investor community has deployed an inexperienced scouting pool that has far too often and grossly mistaken eloquence for competence. This has resulted in high rates of false-positive and false-negative diagnostics of hedge funds thus ensuing with the unfortunate headlines plaguing this industry; again, particularly fund of funds.

]]> By: Friday links: taxing transactions Abnormal Returns http://allaboutalpha.com/blog/2009/08/27/funds-of-funds-knocked-flat-by-madoff-but-are-they-down-for-the-count/comment-page-1/#comment-195280 Friday links: taxing transactions Abnormal Returns Fri, 28 Aug 2009 15:54:21 +0000 http://allaboutalpha.com/blog/?p=5653#comment-195280 [...] Did Bernie Madoff kill the hedge fund of fund business?  (All About Alpha) [...] [...] Did Bernie Madoff kill the hedge fund of fund business?  (All About Alpha) [...]

]]>