Browsing: AIMA

Posts Tagged ‘ AIMA ’

AIMA’s New Due Diligence Template

Oct 22nd, 2017 | Filed under: Due Diligence Process, Newly Added, Operations, Partner accounting, Risk Management & Operations, Service Providers, Technology

It has been 20 years since the Alternative Investment Management Association published its first due diligence questionnaire, a template designed to standardize the diligence process by which investors decide if a particular management is right for them. Now it has published a new questionnaire/template, covering a broader range of entities/strategies.Read More

Hedge Fund Gigantism is Not Necessary

Jul 30th, 2017 | Filed under: Fees, Hedge Funds, Newly Added, Seeding/early-stage, Structure of the Hedge Funds Industry

A joint survey by the Alternative Investment Management Association and GPP, the financial services firm formerly known as Global Prime Partners, disaggregates the hedge fund industry by size. It finds that the dynamics of the smallest (emerging-funds) sector looks very different once the “billion dollar club” and even the medium-sizedRead More

AIMA and KPMG on Managed Accounts

Dec 15th, 2016 | Filed under: Allocating to A.I., Institutional Asset Management, Newly Added

AIMA’s new managed accounts guide tells us that an investment manager considering the use of managed accounts should consider certain disadvantages that come with this product, and may want to negotiate around these difficulties with investors. For smaller investment managers in particular, the increased regulatory and operational requirements can beRead More

Aftermath of 2008: Reactions to Decreased Liquidity

Nov 20th, 2016 | Filed under: Finance & Economics, Liquid Alternative Investiments, Liquid Alts, Macroeconomics, Newly Added, Other Topics in A.I., Regulatory Environment, The A.I. Industry, The Global Economy & Currencies

A new report from State Street Corporation and the Alternative Investment Management Association says that nearly half of the market participants surveyed believe that decreased market liquidity is a secular change, not a cyclical one: that is, that it is a climate that is here to stay, not a rainRead More

Alpha From the Non-Bank Lending Space

Sep 25th, 2016 | Filed under: Hedge Funds, Newly Added, Other Issues in Private Investments, Private Investments

A new report, Financing the Economy 2016, looks at “the role of alternative asset managers in the non-bank lending environment,” addressing such questions as the likely impact of an exit of the United Kingdom from the European Union (a “Brexit,”) upon Europe-focused direct lending vehicles. The paper is a jointRead More

Aligning Interests: Changes in Alt Investment Business Models

Sep 18th, 2016 | Filed under: Fees, Hedge Fund Industry Trends, Hedge Funds, Industry Size & Managers, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

A new AIMA research paper discusses “the alignment of interests between hedge fund managers and investors” as it manifests itself in changes in the hedge fund business model. There have always been features in the relationship that were designed to produce such an alignment. As Michelle McGregor Smith observes, inRead More

AIMA on the Consequences of Brexit: Three Scenarios

Jul 5th, 2016 | Filed under: Newly Added, Regulatory, Regulatory Environment, The A.I. Industry

Among the questions that have acquired a great deal of urgency in recent days is: what will Brexit mean for MiFiD? Or for MAD? Or for the CMU? Britain has always been a major voice in the creation of these systems and directives within the EU. Where will hedge fundRead More

New AIMA Guide: 7 Themes for Investor Relations Professionals

Jun 23rd, 2016 | Filed under: Alternative Investments in Context, Industry Size & Managers, Investor Relations, Newly Added, Sales & Marketing in the AI Industry, The A.I. Industry

In October 2015, a scholar at the University of Toronto wrote a paper on what he called the “paranoid style of investment lawyers and arbitrators,” bemoaning an increasingly shrill and belligerent tone in the investment world of late. If there is such paranoia, one probable contributor, and one possible consequenceRead More

Centripetal versus Centrifugal Force: Fund Marketing in Europe

Jun 14th, 2016 | Filed under: Newly Added, Other Topics in A.I., Regulatory, Regulatory Environment, Sales & Marketing in the AI Industry, The A.I. Industry, UCITs

On June 2, 2016 the EC issued a consultation document of interest to the many alpha seekers who would like to market their funds in one or more of the countries of the Eurozone. In a sense, its interest is much broader than that, because it fits into a veryRead More

AIMA’s Guide to the Bamboo Bridge of Operations

Feb 15th, 2016 | Filed under: Due Diligence Process, Newly Added, Operations, Regulatory Environment, Risk Management & Operations, Risk Management Strategies & Processes, The A.I. Industry

How sturdy can a bamboo bridge be? The front page of a new Guide from The Alternative Investment Management Association consists of a photo of a bamboo bridge, apparently on a beach, as seen from below. That is, this is the view of someone on whom the bridge would fall,Read More

AIMA Suggests Third Method For Leverage Measurement

Feb 7th, 2016 | Filed under: Hedge Fund Regulation, Newly Added, Regulatory Environment, The A.I. Industry

At present, AIFMD allows for either a gross or a commitment method of measuring leverage. AIMA has suggested a third method. The Context The European Commission has issued a “call for evidence” on the EU regulatory framework for financial services. One of the comments the EC received on this subjectRead More

Banks (PBs): Turning Cash Away

Jan 21st, 2016 | Filed under: Hedge Fund Regulation, Hedge Funds, Newly Added, Regulatory Environment, Structure of the Hedge Funds Industry, The A.I. Industry

The Alternative Investment Management Association and S3 Partners jointly sponsored a new survey and report on the consequences of the Basel III reforms on the alternative-investment world. Basel III, a voluntary set of banking-supervisory standards for capital adequacy, stress testing, and market liquidity, published in its final form by theRead More

AIMA: From Cola Wars to Clusters to Clusters-of-Clusters

Nov 22nd, 2015 | Filed under: Equity Hedge Funds, Hedge Fund Industry Trends, Hedge Funds, Newly Added

Equity neutral funds go far beyond simple pairs trades. Still, for reasons that a simple pairs-trading example can illustrate, equity market neutral funds, a recent paper says, have “demonstrated their resilience over the past 20 years, posting steady long-term risk-adjusted returns.” Read More

AIMA Issues Guide for Liquid Alternative Funds

Oct 25th, 2015 | Filed under: Alternative Mutual Funds, Liquid Alternative Investiments, Other Topics in A.I.

If a hedge fund manager accustomed to a less regulated system (and its illiquidity at both ends) has on the blackboard a liquid product, it needs to “evaluate whether [its] strategy is suitable for a UCITS or an AMF format, and whether it can maintain an investment portfolio with sufficient liquid assets to meet the stringent liquidity requirements that exist” under those regimes, the new guide cautions.Read More

A Curtain Opener for the Australia Forum

Sep 13th, 2015 | Filed under: Alternative Beta & Hedge Fund Replication, Hedge Fund Regulation, Performance, Analytics & Metrics

Paul Chadwick, chairman of AIMA Australia, says that the hedge fund industry in Australia is at an "inflection point." Faille reflects on that ubiquitous expression, and then turns to Australia's new Investment Manager Regime. Read More

Fractal Ambiguity in the AIFMD Passport Status of the U.S.

Aug 6th, 2015 | Filed under: Regulatory

What does the road to passport status look like for the US, regarding Europe's AIFMD? It looks rocky, and ESMA seems disinclined to draw a legible map. Instead it offers ambiguity and links to further ambiguity in the footnotes of its report.Read More

Liquidity, Leverage and Those Nimble Hedge Funds

Apr 9th, 2015 | Filed under: Derivatives, Hedge Fund Strategies, Regulatory, Risk management

Basel III has given us three different statistics with a common goal, to keep banks to a stable funding profile, neither too illiquid nor too highly leveraged. As these requirements come on-line, what will be the consequences for the relationship between prime brokers and hedge fund managers? Read More

KPMG, MFA & AIMA: Institutional Investors & Customization

Mar 19th, 2015 | Filed under: Alternative Mutual Funds, Asset allocation, Fees, Hedge Fund Industry Trends, Hedge Fund Strategies, Institutional Investing, Liability Driven Investing, Regulatory

Surveys suggest that certain conspicuous ongoing trends will continue. For example, the classic 20 + 2 fee structure will continue to crumble, replaced by "customized" structures. A full 91% of the small hedge fund managers who filled out a survey agreed with this. A mere 76% of large hedge fund managers did likewise. Read More

AIMA Reports: Activist Hedge Funds are the Good Guys

Mar 3rd, 2015 | Filed under: Hedge Fund Strategies, Private Equity, Regulatory

Activist investors usually aren't trying to take control of a company. And when they are, managers have strong existing tools to foil them. What activist investors can do is increase share value, over sustained periods.Read More

Pension Funds as Alternative Investors Get Some Advice

Jan 28th, 2015 | Filed under: Alpha Hunters, Alpha Strategies, Asset allocation, Institutional Investing

As the CEO of AIMA, Jack Inglis, said: Many pension-fund trustees "are asking questions about their existing or prospective hedge fund allocations. Rarely has there been such demand for a realistic assessment of the benefits – and also the risks – associated with hedge fund investing.” The AIMA and CAIA are working together to meet that demand in a series of papers.Read More

Risk Management versus Risk Mitigation & Absolute Return versus Hedge Funds

Jan 31st, 2013 | Filed under: Alpha Strategies, Hedge Fund Industry Trends

Rene Levesque looks at risk management and absolute return from an industry practitioner's point of view.Read More

AIFMD Still Gives ‘Substantial Leverage’ a Number

Jan 2nd, 2013 | Filed under: Regulatory

Under the new directive, if an alternative investment fund manager manages AIFs that employ "substantial leverage," then this AIFM must include in the information it reports to its EU member home state's competent authority the overall level of leverage employed by each fund. That authority may then require further information as it pertains to systemic risk. Read More

Investing in, Not Gambling Within, the Casino

Nov 20th, 2012 | Filed under: Hedge Fund Industry Trends, Hedge Fund Strategies, Institutional Investing

Ineichen, the author of AIMA's updated roadmap to hedge funds, addresses some of the hot-button issues of investor/management interaction, including fees, leverage, and style drift. Although investors are naturally inclined to see style drift as a bad thing, they should be cautious about demanding that managers stay within a tightly-defined core area of expertise.Read More

AIMA’s Caveats to the UCITS V Proposal

Oct 24th, 2012 | Filed under: Hedge Fund Industry Trends, Regulatory, UCITs

The EC is proposing changes in UCITS, especially targeted at the roles and liabilities of depositaries. We summarize here the proposal itself, and a responsive position paper put out by the Alternative Investment Management Association. Read More

The Cranky Camel: Neither Oasis nor Mirage

Aug 7th, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends

Simon Lack's critique of the whole hedge fund industry wasn't that of an 'Occupier.' He had the background, and the publisher, to make his attack credible. But was it accurate? The research committee of the AIMA begs to differ. Read More

PwC: Open Books Will Rebuild Trust for Hedge Funds

Jun 26th, 2012 | Filed under: Hedge Fund Industry Trends, Institutional Investing

The return of assets to the realm of hedge funds comes with enhanced scrutiny. As Todd Groome, chairman of AIMA, says: “Following 2008, a much greater investor focus on liquidity, portfolio transparency, control and fund governance was clearly evident.” In common with legislative/regulatory changes, this requires transformation.Read More

The Canadian Hedge Fund Ecosystem Described

Jun 11th, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends

Canadians are justly proud of their banking sector, which has endured through the global credit crises of recent years with barely a murmur. AIMA Canada credits its stability in part to capitalization. Canadian banks “greatly exceed the guidelines set by the Bank of International Settlements” on this matter.Read More

Sound Alternatives Practices in the Great White North

May 29th, 2012 | Filed under: Hedge Fund Regulation

The meat of the guide addresses what AIMA Canada considers sound practice in marketing and promotion, such as in the calculation and presentation of returns, in selecting a benchmark relevant to a specific strategy, and in explaining the various ratios used for the same purpose. It notes that the Association for Investment Management and Research’s Performance Presentation Standards (AIMR-PPS) recommend using a time-weighted method for the calculation of returns, a model otherwise known as the Modified Dietz method.Read More

Don’t Fear Hedge Funds or Directional Strategies

May 23rd, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Institutional Investing

Hedge funds as a class have performed quite well since 1994. As one might expect, distinct hedge fund strategies yield distinct results. Long/short equity strategies (or “equity hedge” strategies as KPMG calls them) have done best. Generally speaking, hedge funds willing to make directional bets have outperformed those that stick to relative-value plays.Read More