Browsing: hedge funds

Posts Tagged ‘ hedge funds ’

The Risks of Betting on the Transformation of Automobiles

Nov 11th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds

Hedge funds recently are interested in taking the long position on Telenav (NASDAQ: TNAV). According to Insider Monkey, the number of hedge funds with positions in TNAV rose from eight to 13 at the end of 2018 and the beginning of 2017. Then it slid gradually back to eight overRead More


Investors Want Liquidity and They Want it Now

Nov 7th, 2019 | Filed under: Newly Added, Private Equity, Hedge Fund Strategies, The A.I. Industry, Debt Types of Private Equity, Institutional Investing, Hedge Funds, Equity Types of Private Equity, The Global Economy & Currencies, Other Issues in Private Investments, Business News, Economics, Institutional Asset Management, Private Investments, Macroeconomics, Allocating to A.I., Finance & Economics, Other Topics in A.I.

A recent publication from Fidelity Institutional Asset Management, while looking at the money markets in the US, emphasizes that investors are looking for liquidity. The report, written by Kerry Pope and Chris Lewis, each an institutional portfolio manager with FIAM, begins with a discussion of the Federal Reserve’s September rateRead More


Muddy Waters Sells Burford Short

Nov 3rd, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds

Burford Capital, a New York-based company, provides litigation finance. This is a subject of endless debate, especially among members of the plaintiffs’ bar. The old-style plaintiffs’ lawyer simply says “no, thank you” to any potential client without the financial wherewithal to bear the costs of an action, especially if theRead More


Merger Arb: A Dis-economy of Scale 

Oct 27th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds

A new paper in the Journal of Economics and Business presents data on merger arb, and which factors, especially sector size and individual fund size, do or do not have an impact on the alpha available in the pursuit of this strategy. For a given time period, the total dollar amountRead More


It’s Not Cheating for Market Makers to Pay for Order Flow

Oct 24th, 2019 | Filed under: Newly Added, Algorithmic and high-frequency trading, Hedge Fund Strategies, The A.I. Industry, Asset Managers, Hedge Funds, Business News

Larry Tabb, in a piece in the Financial Times, has defended the controversial practice of payment for order flow (PFOF). Let’s start with PFOF and why it’s controversial. The UK’s Financial Conduct Authority defined PFOF in a recent white paper as the practice in which an investment firm, typically aRead More


Global Hedge Fund Assets Shrink

Oct 20th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Strategies, CTA, The A.I. Industry, Industry Size & Managers, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Macro and Managed Futures Funds, Relative Value Hedge Funds, Structure of the Hedge Funds Industry

According to the latest report from Eurekahedge, the world’s hedge funds recorded a net growth of $3.4 billion due to performance in September 2019. On the other hand, September also saw large net outflows of $6.2 billion. Assets at the end of the month were down 0.12%.  Looking at fundsRead More


The Persistence of the Low-Risk Effect

Oct 10th, 2019 | Filed under: Newly Added, CAPM / Alpha Theory, Hedge Fund Strategies, The A.I. Industry, Financial Economics Theory, Alpha Strategies, Hedge Funds, Finance & Economics

The “volatility effect,” also known as the “low-risk effect,” is the subject of a new paper from Robeco. The gist of the “effect” is this: low-risk stocks “should” show a lesser return than high-risk stocks. The Capital Asset Pricing Model predicts a linear relationship between the risk of a securityRead More


Valuation: A New Approach to an Old Financial Tool

Oct 7th, 2019 | Filed under: Newly Added, The A.I. Industry, Equity Hedge Funds, Risk management, Hedge Funds, Event-Driven Hedge Funds, Other Issues in Private Investments, Risk Management Strategies & Processes

Zane Swanson, an accounting professor at the University of Central Oklahoma, has been at work on a fascinating new approach to the valuation of firms and the valuation of their equity shares. This approach may be of great interest to risk arb hedge funds. Swanson is working with an establishedRead More


Eurekahedge: The Return of Alpha

Sep 29th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, CTA, The A.I. Industry, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Commodities, Macro and Managed Futures Funds, Structure of the Hedge Funds Industry

The Eurekahedge Hedge Fund Index was up in August, 0.17%, easily outperforming the global equity market, as measured by MSCI ACWI, which was down 2.37%. The August number brings the Eurekahedge HFI’s year-to-date result to 6.58%. Approximately 32.6% of the funds Eurekahedge tracks are in double-digits (positive) territory for theRead More


Boone Pickens, A Trailblazer, Passes On

Sep 17th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Investing in Commodities, Socially responsible investing, Hedge Funds, Event-Driven Hedge Funds, oil, Alternative energy, Commodities, Other Issues in Private Investments, Energy, SRI and Clean Energy, Other Topics in A.I.

T. Boone Pickens died quietly at home in Dallas, Texas on Sept. 11, 2019. In his long career Pickens did a good deal to give the current hedge fund industry, as well as the broader asset management industry and the energy commodities markets, their character, in a life that sometimesRead More


Anatomy of an Upset

Sep 16th, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Hedge Funds, Private Investments

By Diane Harrison Everyone loves an underdog. While superheroes have their fans, there’s something about a dark horse or a comeback kid that generates support for a hard-won victory. Take the recent US Open tennis championship match between Serena Williams, the sports media’s proclaimed GOAT (Greatest of All Time) andRead More


Negative Interest Rates: A Reason to Invest in Hedge Funds?

Sep 9th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, CTA, The A.I. Industry, Equity Hedge Funds, Liquid Alternative Investiments, Alpha Strategies, Hedge Funds, Event-Driven Hedge Funds, Liquid Alts, Macro and Managed Futures Funds, Allocating to A.I.

Negative interest rate policy—that is, central bank arrangements that seek to inspire spending by punishing savings, not merely in real but in nominal terms—have spread in recent years among the developed economies, and are now in use in Japan, Switzerland, Sweden, and the Eurozone. Denmark got the ball rolling inRead More


Zebras Are Reactionaries

Sep 9th, 2019 | Filed under: Newly Added, What about beta?, The A.I. Industry, Asset Managers, Alpha Strategies, Hedge Funds, Smart Beta, Risk Management & Operations, Allocating to A.I.

Someone told me that it’s all happening At the Zoo. In this case, it was Paul Simon in his 1967 title song where he anthropomorphizes the animals he sees in the Central Park Zoo. Some are deemed to be honest, some kindly but dumb, and some insincere or skeptical, and,Read More


PORTFOLIO PROTECTION VIA MANAGED FUTURES LIQUID ALTS?

Sep 8th, 2019 | Filed under: Newly Added, Commodities, Hedge Fund Strategies, CTA, The A.I. Industry, Investing in Commodities, Liquid Alternative Investiments, Alternative Mutual Funds, Hedge Funds, Liquid Alts, Commodities, ETFs, Macro and Managed Futures Funds, Allocating to A.I., Other Topics in A.I.

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION The mafia and the hedge fund industry share some characteristics. Both are powerful, non-transparent, and create little value for society. Naturally the mafia is a criminal organization while the only “criminal” element of hedge funds are the high fees they are charging forRead More


New Study Shows Hedge Fund Investors are Quick Learners

Sep 3rd, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Consultants, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Institutional Investing, Hedge Funds, Event-Driven Hedge Funds, High-net-worth investors, Endowments & Foundations, Institutional Asset Management, Family Offices

A recent study by two scholars at the University of California Irvine asks how quickly investors learn about the skills of their asset managers, including their hedge fund managers. Christopher Schwarz and Zheng Sun, both associate professors of finance at The Paul Merage School of Business at UC Irvine, hadRead More


Options: When Skewness is Not on the To Do List

Aug 29th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Structure of the Hedge Funds Industry

Which options do hedge funds employ in their portfolios? A recent paper concludes that hedge funds as a trader/investor class prefer liquid high-embedded leverage options without lottery-like skewness. The paper also finds that they are good at what they do. Their equity options plays “deliver superior performance unobtainable by tradingRead More


Hedge Fund Performance Gains: Investor Flow Losses

Aug 25th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Macro and Managed Futures Funds, Relative Value Hedge Funds, Structure of the Hedge Funds Industry

Global hedge fund assets under management have stayed close to flat for months now. That’s one of the points made in the latest Eurekahedge report. As of July, the AUM is just a little under $2.3 trillion, or roughly where it has been since late last year. Although there haveRead More


Anticipating Buyout Deals: A Prospective New Model on an Old Strategy

Aug 22nd, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Risk management, Hedge Funds, Event-Driven Hedge Funds, Risk Metrics and Measurement, Smart Beta, Risk Management Strategies & Processes, Risk Management & Operations

Milind Sharma and Aravind Ganesan have developed what they call the QMIT Leveraged Buyout Model—a trading strategy—based on anticipating announcements of LBOs based on QMIT’s factor library. Sharma is the CEO of QMIT, QuantZ Machine Intelligence Technologies. QMIT is itself a spin-off from QuantZ Capital, which is a stat arbRead More


What Hedge Funds Do When the Lights Go Out

Aug 13th, 2019 | Filed under: Newly Added, CAPM / Alpha Theory, The A.I. Industry, Equity Hedge Funds, Financial Economics Theory, Hedge Funds, Finance & Economics

A new paper looks at how hedge funds adjust their information acquisition and trading behavior as analyst coverage changes—and more specifically, when certain stocks cease to be covered by certain analysts. These authors considered the hypothesis that, faced with a murkier environment, hedge funds might become more cautious, reducing theirRead More


How Endowments and Foundations Look at Hedge Funds

Aug 8th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Consultants, Private Equity, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Debt Types of Private Equity, Venture capital, Hedge Funds, Equity Types of Private Equity, High-net-worth investors, Endowments & Foundations, Institutional Asset Management, Private Investments, Fees, Family Offices

Cowen’s Capital Introduction Group has compiled information on what the endowment and foundation community is thinking about hedge funds and how best to invest in them. The Cowen paper on the subject begins with the observation, drawn from Preqin, that at present US-based E&Fs with more than $750 million inRead More


Postcards from the Edge

Aug 5th, 2019 | Filed under: Newly Added, What about beta?, Private Equity, Regulatory Environment, Hedge Funds, Alternative Investments in Context, Private Investments

By Bill Kelly, CEO, CAIA Association As the calendar turns to August we are in the waning weeks of summer in the northern hemisphere. Perhaps it is a good time to turn to the mailbag to see who has been doing what in this halcyon season… From Jerome in DC Read More


High-Yield Credit: The Case for Systematic and Discretionary Management

Aug 4th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Hedge Funds, Relative Value Hedge Funds

A new look “under the hood” at active credit managers comes from a paper written by two executives at AQR Capital Management. Diogo Palhares and Scott A. Richardson find that long/short fixed-income managers have a high exposure to the credit risk premium. But high-yield-focused long-only managers provide less exposure toRead More


Hedge Fund Performance and Fees: Who is Earning Their Keep?

Jul 30th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, CTA, The A.I. Industry, Industry Size & Managers, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Macro and Managed Futures Funds, Fees, Relative Value Hedge Funds, Structure of the Hedge Funds Industry

The Eurekahedge Hedge Fund Index was up in June, wrapping up a very strong first half of the year for the hedge fund industry. The monthly increase of 1.83% reverses the down month of May, which in turn was a reversal of the strength of the first four months, withRead More


Restrictions on Pension Plan Investments: A Global Survey

Jul 16th, 2019 | Filed under: Newly Added, Derivatives, The A.I. Industry, Institutional Investing, Hedge Funds, Commodities, Institutional Asset Management, Structured Products, Allocating to A.I.

A new report from the Organization for Economic Cooperation and Development surveys the main quantitative investment restrictions to which pension funds and other pension providers are subject in both OECD countries and a selection of International Organization of Pension Supervisors’ (IOPS) member countries. It reminds us of the general desireRead More


The Audacity of Opacity

Jul 15th, 2019 | Filed under: Newly Added, What about beta?, Consultants, Media Coverage of Hedge Funds, Private Equity, Industry Size & Managers, Asset Managers, Institutional Investing, Hedge Funds, High-net-worth investors, Alternative Investments in Context, Endowments & Foundations, Institutional Asset Management, Private Investments, Family Offices, Allocating to A.I.

By Bill Kelly, CEO, CAIA Association Why are we still talking about this? No, it’s not the central bankers and their insatiable easing tendencies, trade wars with China, or even the Women’s World Cup football match (sorry Netherlands!). These stories all make great headlines, drive news ratings, generate tickertape parades,Read More


Quantum Computing Will Mess Up all Expectations

Jul 11th, 2019 | Filed under: Newly Added, Algorithmic and high-frequency trading, The A.I. Industry, Technology, Other Issues in Private Investments, Business News, Private Investments, Risk Management & Operations

There are reports that Google is preparing an announcement of “quantum supremacy” for later this year. If true, this is the biggest tech story since the transistor replaced vacuum tubes. It could be a disruptive development for just about every business with an IT department. Among much else, quantum supremacyRead More


Net Performance Reporting: Not Just Arithmetic

Jul 2nd, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Operations and Risk Management, The A.I. Industry, Industry Size & Managers, Asset Managers, Operations, Hedge Funds, Partner accounting, Fees, Structure of the Hedge Funds Industry

Why can’t a fund manager simply subtract all fees and expenses from gross returns and present the arithmetical result to existing or potential investors? In a newly released paper, Donald Steinbrugge, the founder and CEO of Agecroft Partners, discusses how hedge funds calculate and present their net performance, and theRead More


Hedge Fund Index Backslides in May; Remains in Positive Territory

Jun 25th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, CTA, The A.I. Industry, Industry Size & Managers, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Commodities, Funds of Hedge Funds, Relative Value Hedge Funds

Red ink spoiled an otherwise positive 2019 for he Eurekahedge Hedge Fund Index. The decline of 0.71% leaves the year-to-date performance still well up, at +4.32%. Approximately 41.6% of the funds Eurekahedge tracks were in the black for the month. And 15% have generated double-digit gains year-to-date. North America-mandated hedgeRead More


A HORSE RACE OF LIQUID ALTERNATIVES

Jun 13th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, CTA, The A.I. Industry, Investing in Commodities, Equity Hedge Funds, Liquid Alternative Investiments, Hedge Funds, Liquid Alts, Commodities, ETFs, Macro and Managed Futures Funds, Other Topics in A.I.

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION Investing is challenging as it is complex and complicated, which requires continuous learning and updating of mental frameworks. Conflicts and contradictions are found everywhere. For example, data from the mutual fund industry shows that most funds fail to outperform their benchmarks, but investors inRead More


It’s YOUR Reputation; Time to Beale With It! 

Jun 10th, 2019 | Filed under: Newly Added, What about beta?, Hedge Fund Industry Trends, Hedge Fund Strategies, Hedge Funds, Alternative Investments in Context, Structure of the Hedge Funds Industry

By Bill Kelly, CAIA Association CEO The satirical movie Network was released almost 40 years ago. The character Howard Beale, played by the actor Peter Finch, is one of the more enduring legacies of this film. He is a news anchor for the UBS Network, and he is to be terminated in two weeks for fallingRead More


Hedge Funds, Agency Capitalism, and Poison Pills

Jun 9th, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

A new paper in the Journal of Applied Corporate Finance looks at “agency capitalism” and its development in the United States during the past 15 to 20 years. The term “agency capitalism” refers in general to any system in which institutional investors dominate as shareholders of record for the votingRead More


SCOTUS Leaves a Big Pharma Insider-Trading Conviction Intact

Jun 6th, 2019 | Filed under: Newly Added, The A.I. Industry, Regulatory, Regulatory Environment, Hedge Funds, Legislation/Court rulings

On June 3, the US Supreme Court denied certiorari in the matter of Martoma v. US. This is the end of the line, then, for the appeals of Mathew Martoma’s criminal conviction and sentence. Martoma is a former portfolio manager for SAC Capital, now known as Point72 Asset Management. HeRead More


Hedge Funds Performing Well Year-to-Date, But Trade Issues Loom Large

Jun 2nd, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Relative Value Hedge Funds

The Eurekahedge Hedge Fund Index continues to reflect strong performance for the year. First quarter 2019 was one of the strongest quarterly returns since the global financial crisis, and each of its three months was positive. April was another up month, +1.06%, which brings us to +5.15% YTD. Hedge fundsRead More


How Hedge Funds Use Corporate Social Responsibility Considerations

May 30th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, Social investing, The A.I. Industry, Equity Hedge Funds, Socially responsible investing, Hedge Funds, Event-Driven Hedge Funds, SRI and Clean Energy

A new study by Jun Duanmu and three colleagues examines hedge fund use of matters of corporate social responsibility. The authors work from an asset-weighted composite measure of CSR by fund, in order to seek the difference in financial performance of those hedge funds with high CSR investment and thoseRead More


HEDGE FUND ETFS: BETTER THAN THE ORIGINALS

May 12th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Retail Investing, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds, Alternative Investments in Context, ETFs, Macro and Managed Futures Funds, Relative Value Hedge Funds, Allocating to A.I.

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION As Amazon has been decimating large parts of the retail industry over the last two decades, ETFs have done the equivalent to the mutual fund industry in the financial world. Today ETFs are covering nearly all areas of the markets, no matter howRead More


‘There You Go Again’

May 6th, 2019 | Filed under: Newly Added, What about beta?, Private Equity, Debt Types of Private Equity, Hedge Funds, Equity Types of Private Equity, Other Issues in Private Investments, Alternative Investments in Context, Private Investments

By Bill Kelly, CEO, CAIA Association This now famous line was uttered by then citizen Ronald Reagan almost 40 years ago in a presidential debate with the incumbent Jimmy Carter. It was a simple and clever turn of a phrase acting as a counter-punch to Carter’s excoriation of Reagan’s priorRead More


Hedge Funds: The Strongest Quarterly Return Since the GFC

May 2nd, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, The A.I. Industry, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Macro and Managed Futures Funds, Relative Value Hedge Funds

March was a good month and the first quarter of 2019 was promising, according to the April report from Eurekahedge. The Eureka Hedge Fund Index gained 1.06% in March. This yields a first quarter return of 4.36%. As the report says, this is the strongest quarterly return since the globalRead More


State of the European Union: Alternative Lending

Apr 25th, 2019 | Filed under: Newly Added, The A.I. Industry, Debt Types of Private Equity, Hedge Funds, Other Issues in Private Investments, Private Investments

The state of alternative lending and pertinent regulation within the European Union is the topic of a new white paper co-authored by Allen & Overy, the multinational law firm, and the Alternative Credit Council (an affiliate of AIMA). The paper begins with the observation that over the last four yearsRead More


Hedge Funds and the EUR/CHF Trade

Apr 22nd, 2019 | Filed under: Newly Added, Hedge Fund Strategies, Currencies, The A.I. Industry, Equity Hedge Funds, Forex, Hedge Funds, Event-Driven Hedge Funds, The Global Economy & Currencies, Macroeconomics

Three scholars affiliated with JP Morgan Chase have written a paper on hedge fund behavior ahead of meetings of the Swiss National Bank, with the idea of shedding light on the consequences of the timing of central bank announcements more generally. They conclude that the SNB contributed to the volatilityRead More


REPLICATING FAMOUS HEDGE FUNDS

Apr 21st, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Alternative Beta & Hedge Fund Replication, Hedge Funds

By Nicolas Rabener @Factor Research INTRODUCTION In 1973, the U.S. Food and Drug Administration (FDA) published the first regulations that required the nutrition labeling of certain foods as consumers were left in the dark about what they were eating. The regulations evolved and culminated in the widely-recognized nutrition facts panelRead More


Hedge Funds: Deep-Diving Into the 2018 Numbers

Apr 18th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Macro and Managed Futures Funds, Structure of the Hedge Funds Industry

Martin McCubbin, a senior research analyst at Fidante, looks at the hedge fund performance numbers for 2018 in a new paper, which shows it was a difficult year. Early going in 2019 has been somewhat better, but that the “better” cannot be relied upon. The rest of this year couldRead More


Let WSYD Be Your Guide 

Apr 8th, 2019 | Filed under: Newly Added, What about beta?, Hedge Funds, Alternative Investments in Context, Allocating to A.I.

By Bill Kelly, CEO, CAIA Association WWJD has been a motto for certain holy rollers who ask, ‘What Would Jesus Do?’ in any variety of situations. Perhaps this phrase is meant to serve as an ethical guide or a touchstone back to someone who might just know what is right more than you do. ThisRead More


High-Frequency-Trading Firms: Fast, Faster, Fastest

Apr 2nd, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Algorithmic and high-frequency trading, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Business News

Many high-frequency trading (HFT) firms have disappeared into larger firms as merger activity has increased recently. Those acquired include Chopper, Infinium, Teza, RGM Advisors, and Sun Trading. It also includes Getco, the Chicago-based firm founded in 1999 by two former floor traders that almost defined the field for some time.Read More


Corporate Distress and Its Derivatives

Mar 31st, 2019 | Filed under: Newly Added, Derivatives, The A.I. Industry, CDO Structuring and Credit RIsk, Hedge Funds, Event-Driven Hedge Funds, Credit Derivatives, Structured Credit Products, Structured Products

Henry T.C. Hu, of the University of Texas at Austin, School of Law, has written an article on the “information asymmetries” that are associated with corporations that are in financial distress, but not under bankruptcy court protection. It is an article that sends us back to the Christmas selling seasonRead More


Eurekahedge: Light at the End of Trade-War Tunnel?

Mar 25th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds

During the Vietnam War era, the metaphor of “light at the end of a tunnel” expressed American optimism under stress, The image was supposed to convey the idea that the US and its local allies could eventually attain a favorable peace in that country if only they persevered—that the lightRead More


Hedge Funds: Observing the Unobserved Performance

Mar 14th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Performance, Analytics & Metrics, Hedge Fund Strategies, The A.I. Industry, Alpha & Beta, Benchmarking & Performance Attribution, Hedge Funds, Structure of the Hedge Funds Industry

Two different strands of scholarly research into hedge fund performance produce markedly different conclusions. There is the returns-based approach, which finds that the average hedge fund manager does better than the market portfolio, net of fees. But there is also a holdings-based approach, which looks at the performance of theRead More


Pension Funds Not Quite Swamped by ‘Grey Tsunami’

Mar 5th, 2019 | Filed under: Newly Added, Real Estate, Private Equity, Hedge Fund Strategies, Infrastructure, The A.I. Industry, Equity Hedge Funds, Debt Types of Private Equity, Institutional Investing, Asset allocation, Hedge Funds, Event-Driven Hedge Funds, Equity Types of Private Equity, Natural Resources and Land, Asset Allocation Models, Commodities, Operationally Intensive Real Assets, Institutional Asset Management, Macro and Managed Futures Funds, Private Investments, Real Estate Equity Investments, Real Assets, Allocating to A.I.

A recent study of public employee retirement systems in the United States reaches conclusions, that, after a fair amount of “grey tsunami” alarmism in recent years, sound reassuring. The study, based on a recent survey of system managements conducted by the National Conference of Public Employee Retirement Systems (NCPERS) inRead More


Hedge Funds Stronger in January, Thanks to The Fed

Mar 3rd, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Performance, Analytics & Metrics, Hedge Fund Strategies, CTA, The A.I. Industry, Industry Size & Managers, Equity Hedge Funds, Benchmarking & Performance Attribution, Hedge Funds, Event-Driven Hedge Funds, Funds of Hedge Funds, Macro and Managed Futures Funds, Relative Value Hedge Funds

Risk-on sentiment returned in January, with good news on trade talks and with the Federal Reserve in the United States putting some distance between itself and its 2018 hard-money stance (the Fed started saying in January that it would be “patient” about selling off-balance sheet assets). Globally, hedge funds grewRead More


Defined Contribution Schemes in Britain: Encouraging a Broader Portfolio

Feb 28th, 2019 | Filed under: Newly Added, Consultants, Private Equity, The A.I. Industry, Institutional Investing, Alpha Strategies, Hedge Funds, Equity Types of Private Equity, Institutional Asset Management, Private Investments, Allocating to A.I.

Britain’s All-Party Parliamentary Group on Alternative Investment Management has published a paper on the country’s pensions. It’s focus is defined contribution schemes especially and the demographic strain they face, and the prospect of their moving more heavily into alternative assets and strategies in response. Defined benefit schemes “have some freedomRead More


Green Bonds: The Future of Infrastructure Investing

Feb 24th, 2019 | Filed under: Newly Added, Commodities, Infrastructure, Investing in Commodities, Debt Types of Private Equity, Institutional Investing, Socially responsible investing, Hedge Funds, Commodities, Operationally Intensive Real Assets, Climate change, Institutional Asset Management, Private Investments, Real Assets, SRI and Clean Energy, Other Topics in A.I.

Two scholars affiliated with the Centre for International Governance Innovation, Waterloo, Canada, have taken a look at the future of green bonds, that is, bonds whose proceeds are employed to fund environmental initiatives. The paper, by Olaf Weber and Vasundhara Saravade, begins with a guesstimate as to the amount ofRead More