Browsing: hedge funds

Posts Tagged ‘ hedge funds ’

Real Estate Tops the Willis Alternative Investment League Table

Aug 10th, 2017 | Filed under: Hedge Funds, Industry Size & Managers, Newly Added, The A.I. Industry

Willis Towers Watson (NASDAQ: WLTW) recently posted its Global Alternatives Survey. WLTW is a consultancy with a long history, roots going back to 1828, and that now has 40,000 employees serving clients in 140 countries. The gist of its new report is that the alternatives asset industry has grown toRead 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


Hedge Funds in the United Kingdom

Jul 27th, 2017 | Filed under: Alternative Investments in Context, Industry Size & Managers, Newly Added, The A.I. Industry

Just prior to the June 8 election in the UK this year, Preqin took a look at the state of the hedge fund industry there. Interest in this subject matter is high for the alternative industry globally, given London’s centrality and the great deal that is riding on how theRead More


Skin in the Game: Testing a Cliché

Jul 16th, 2017 | Filed under: Alternative Investments in Context, Asset Managers, Hedge Funds, Industry Size & Managers, Newly Added

One of the most well-worn clichés in the hedge fund industry is the phrase “skin in the game.” Investors want managers who have “skin in the game,” that is, managers who risk/hedge their own money the same way they are risking/investing their outside investors’ money. A recent paper by ArpitRead More


New Technologies Adding to Pressure on Fees

Jun 25th, 2017 | Filed under: Fees, Hedge Funds, Newly Added, Structure of the Hedge Funds Industry

A new paper proposes that emerging technologies (blockchains, Big Data and artificial intelligence) have increased pressure on the traditional hedge fund fee structure of 2 + 20. Its author is Wulf A. Kaal, an Associate Professor at the University of St. Thomas and director of the Private Investment Fund Institute.Read More


Pension Funds’ Portfolio Decisions: The Dutch Data

Jun 11th, 2017 | Filed under: Allocating to A.I., Institutional Asset Management, Institutional Investing, Newly Added

DeNederlandscheBank (DNB) issued a working paper this spring about the impact of liquidity and capital constraints on defined benefit pension plans. The paper has three authors, Dirk Broeders, Kristy Jansen, and Bas Werker. The first named author, Broeders, is the only one formally affiliated with DNB. The others are affiliatedRead More


First Quarter: An Industry Recovers From a Dry Spell

May 18th, 2017 | Filed under: Hedge Funds, Industry Size & Managers, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

Preqin’s review of the hedge fund space in the first quarter of 2017 describes the quarter as a time of “return to form” after a dry spell. Two thirds of the investors interviewed by Preqin at the end of 2016 had said that their hedge fund investments had failed toRead More


State Pensions and Complex Investments

May 14th, 2017 | Filed under: Allocating to A.I., Alpha & Beta, Institutional Asset Management, Institutional Investing, Newly Added

A recent report from the PEW charitable trusts discusses the degree to which the pension funds of the states of the United States are increasing their use of “complex investments.” It also speaks to the consequences of this move. The term “complex investments” is used here to describe any departureRead More


Generation Two Liquid Alternatives

Apr 25th, 2017 | Filed under: Liquid Alternative Investiments, Liquid Alts, Newly Added, Other Topics in A.I., Sales & Marketing in the AI Industry

Beachhead Capital Management has published a white paper on what it calls the “second generation of liquid alternatives.” To begin at the beginning, “liquid alternatives” are investment products, available to retail investors, for example through mutual funds or ETFs, which are designed to provide the diversification and absolute-return benefits typicallyRead More


Credit Suisse Finds that Institutions Remain Committed to Hedge Funds

Apr 11th, 2017 | Filed under: Allocating to A.I., Hedge Funds, Newly Added, Structure of the Hedge Funds Industry

A new Credit Suisse report about hedge fund investors’ appetites, titled “shifting tides,” comes to the somewhat re-assuring conclusion that, in some respects at least, the shift isn’t what one might fear. The report begins with the simple observation that 2016, a year that began with unexpected swings in manyRead More


The Low Volatility Anomaly: Gunpowder Inc.

Feb 26th, 2017 | Filed under: CAPM / Alpha Theory, Finance & Economics, Financial Economics Theory, Hedge Funds, Newly Added, Structure of the Hedge Funds Industry

In a new paper David Blitz, the head of quantitative strategies for Robeco Asset Management, crunches numbers and reaches a surprising conclusion, precisely contrary to an intuitively appealing theory about the low volatility anomaly.  But … let’s begin from the beginning. Standard financial economic theory holds that investors are compensatedRead More


Hedge Fund Managerial Talent: From Quality to Quantity

Feb 20th, 2017 | Filed under: Hedge Fund Industry Trends, Hedge Funds, Newly Added, Structure of the Hedge Funds Industry

A new report that comes to us jointly from EY and the AIMA indicates that hedge fund industry leaders believe that one of the secrets to success in the field is investment in, and thus retention of, talent. When the report was released, Dan Thompson, partner in the EY financialRead More


Formula: Information + Liquidity + Short Time Horizon = Short Sales Profits

Feb 14th, 2017 | Filed under: Equity Hedge Funds, Event-Driven Hedge Funds, Hedge Funds, Newly Added

Jaewon Choi and two other scholars recently presented a paper that offers “direct evidence about the profitability of hedge fund short trades in equities.”  What is intriguing about this paper is not only what it finds about the profitability of short trades, but its method, why its authors consider theirRead More


Pitfalls and Publicly Owned Hedge Fund Managers

Jan 31st, 2017 | Filed under: Alternative Investments in Context, Hedge Funds, Newly Added, The A.I. Industry

Two scholars affiliated with Singapore Management University have published a study of “the pitfalls of going public,” that is, of what can happen when the management of a hedge fund becomes a publicly owned company. They conclude that the going-public process itself breaks the alignment of incentives between managers andRead More


Hedge Fund Performance: A Multi-Factor Model

Jan 22nd, 2017 | Filed under: Allocating to A.I., Benchmarking & Performance Attribution, Hedge Funds, Newly Added

Dimitrios Stafylas, of Aston University, Aston Business School, in Birmingham, England, has proposed a “holistic” model of hedge fund performance attribution with three key features: Irrespective of underlying fundamentals, it is only during good times that hedge funds as a class deliver significant excess return to their investors; Also duringRead More


A Brief History of Hedge Fund Regulations in India

Jan 15th, 2017 | Filed under: Hedge Fund Regulation, Industry Size & Managers, Newly Added, Regulatory Environment, The A.I. Industry

The investment world now understands that politics and related matters of business climate in the Republic of India since the dramatic victory of the Bharatiya Janata Party in 2014. What is less well known is that alternative investment funds have been among the beneficiaries of the broader change. This storyRead More


PGIM:  Not All Alternatives Are Alike

Jan 2nd, 2017 | Filed under: Allocating to A.I., Alpha & Beta, Asset Allocation Models, Institutional Asset Management, Institutional Investing, Newly Added

A new report from PGIM Institutional Advisory looks at an old question: what role should alternative investments play within the portfolio allocation decisions of institutions? The question is especially pressing at the beginning of 2017 because US broad equity indexes have done quite well for years, ever since the marketsRead More


Natixis asks 500 institutional investors to look into the future

Dec 20th, 2016 | Filed under: Allocating to A.I., Emerging markets, Finance & Economics, High-net-worth investors, Institutional Asset Management, Newly Added, The Global Economy & Currencies

Natixis Global Asset Management has released the results of a survey of 500 institutional investors, asking them their views on prospects for 2017. The surveyed institutions expect that political and economic developments could cause an increase in volatility in the year to come, and active managers have to reset theirRead More


Pension Funds, Hedge Funds, and Allocations

Nov 8th, 2016 | Filed under: Allocating to A.I., Alpha & Beta, Institutional Asset Management, Institutional Investing, Newly Added

A new scholarly paper addresses the puzzle: which institutional investors are best informed? Zhe Chen, of the University of New South Wales, David Forsberg, Macquarie Graduate School of Management, and David R. Gallagher, UNSW Australia Business School,  compare hedge funds, mutual funds, pension funds, and private banking firms to determineRead More


Study Says Pensions May Be Looking for Returns in the Wrong Places

Aug 7th, 2016 | Filed under: Allocating to A.I., Alpha & Beta, Newly Added, Private Investments, Real Estate Equity Investments

Alex Beath, senior research analyst at CEM Benchmarking, the Toronto-based pension research firm, has produced a white paper on the pension fund performance in the U.S. since 1998, and the news he brings is not good (for pension funds themselves, or for the hedge funds to which they have allocatedRead More


Brexit and Hedge Fund Strategies

Jun 30th, 2016 | Filed under: Currencies, Equity Hedge Funds, Finance & Economics, Hedge Funds, Newly Added, Relative Value Hedge Funds, The Global Economy & Currencies

How well did hedge funds help their investors to hedge potential losses as a consequence of the markets’ immediate reaction to the Brexit vote in the United Kingdom? How well will they hedge the other uncertainties going forward? Thursday, June 23, the UK voted to leave the European Union. TheRead More


March Improved, but 2016 Still Rains Red for Hedge Funds

Apr 24th, 2016 | Filed under: Allocating to A.I., Alpha & Beta, Benchmarking & Performance Attribution, Equity Hedge Funds, Hedge Fund Industry Trends, Hedge Fund Strategies, Hedge Funds, Newly Added

The latest report from Eurekahedge indicates that hedge funds worldwide gained in March, though by far less than the underlying markets gained during the same period. Specifically, the Eurekahedge Hedge Fund Index gained 1.33 percent over the month, while the MSCI World Index, representing those underlying markets, gained 5.47 percent.Read More


Strategy Idea: Short Sell High-DTC Stocks, Go Long Low-DTC Stocks

Mar 6th, 2016 | Filed under: Alpha Strategies, Equity Hedge Funds, Hedge Fund Strategies, Hedge Funds, Newly Added, The A.I. Industry

A recent paper correlating days-to-cover with stock returns finds a DTC premium effect and suggests that hedge funds might want to arbitrage it. This study begins with the crowded trade problem. With so many sophisticated investors in the markets, looking for or at the same arb opportunities, a number ofRead More


Federal Judge: Gingrich-Era Bars Not Easily Circumvented

Mar 3rd, 2016 | Filed under: Legislation/Court rulings, Newly Added, Other Topics in A.I., Regulatory Environment, Sales & Marketing in the AI Industry, The A.I. Industry

Lucy Koh, the US. District Court judge for the Northern District of California, has granted judgment for a defendant, Schwab Investments, in a much-watched case. Koh has short-circuited litigation in which plaintiffs sought recovery for the style drift that allegedly afflicted a number of Schwab entities as the globe headedRead More


Convergence: Hedge Fund Managers Will Need More Staff

Mar 1st, 2016 | Filed under: Asset Managers, Hedge Fund Industry Trends, Hedge Funds, Industry Size & Managers, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

Convergence, a research and advisory firm serving the alternative asset management world, has posted a review of the year 2015, looking at where the industry stands by comparing 2015 and 2014 numbers in a number of respects.Read More


Alternatives Appetite 2016: Bulk Up or Slim Down?

Feb 8th, 2016 | Filed under: Hedge Fund Industry Trends, Newly Added, Structure of the Hedge Funds Industry, The A.I. Industry

By Diane Harrison January started the year off with a bang, as global markets were rocked by Fed tightening, China crumbling, and lots of political mumbling. Prices swooned across the board and spooked investors, who strained to make sense of a financial foundation that seems to be built on sand.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


Challenges to Mergers: Not So Automatic Anymore?

Jan 31st, 2016 | Filed under: Hedge Funds, Legislation/Court rulings, Newly Added, Regulatory Environment, Relative Value Hedge Funds, The A.I. Industry

The Delaware Court of Chancery has become increasingly hostile of late to lawsuits that challenge corporate mergers on fiduciary grounds. This is important, because the course of recent decades certain boilerplate sorts of lawsuits have become a regular feature of the mergers-and-acquisitions landscape in the U.S.  The law has allowedRead More


Eurekahedge: Performance after the ECB Underwhelms

Jan 28th, 2016 | Filed under: Benchmarking & Performance Attribution, Equity Hedge Funds, Hedge Funds, Macro and Managed Futures Funds, Newly Added, Performance, Analytics & Metrics

The latest Eurekahedge report says that regional mandates for the month of December 2015 produced quite mixed results. Asia ex-Japan managers yielded the best results, gains of 1.45%. Their Japanese counterparts produced 0.27%. In annual terms, Asia ex-Japan funds delivered 8.23% in 2015. Such funds saw an annual AUM growthRead 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


Top Alpha Stories of 2015: Nerds Win Three, Lose Two

Dec 29th, 2015 | Filed under: Commodities, Industry Size & Managers, Investing in Commodities, Newly Added, Regulatory, Regulatory Environment, Structure of the Hedge Funds Industry, The A.I. Industry

We offer our annual review of the five top Alpha stories of the year ending, in the course of which we mention that these are exciting times in the world of basic biological/medical research. They’ve been exciting at least since the completion of the map of the human genome in 2003, when attention turned to what can be done with that map. Read More


Eurekahedge: All Regional Mandates Up for November

Dec 23rd, 2015 | Filed under: Allocating to A.I., Benchmarking & Performance Attribution, Event-Driven Hedge Funds, Hedge Funds, Newly Added, Performance, Analytics & Metrics

Faille takes a quick trip around the world with the assistance of Eurekahedge's numbers and graphs showing performance in November 2015 and year to date.Read More


AIMA: 44% of Hedge Fund Firms Planning New Launches in 2016

Dec 20th, 2015 | Filed under: Asset Managers, Industry Size & Managers, Liquid Alternative Investiments, Liquid Alts, Newly Added, Other Topics in A.I., The A.I. Industry

A global survey by PwC and the Alternative Investment Management Association looks at the expansion of the hedge fund industry and the evolution of its distribution model. The most eye-catching statistic from the survey us that 44% of fund managers responding said that they will launch a new fund byRead More


Institutions Thinking About Interest Rates and Volatility

Dec 15th, 2015 | Filed under: Allocating to A.I., Benchmarking & Performance Attribution, Endowments & Foundations, Institutional Asset Management, Institutional Investing, Newly Added, Performance, Analytics & Metrics

In recent months, even the anticipation of Fed Reserve tightening has been able to send markets into a tizzy. Now the actual tightening is at last upon us. Both Natixis and Reuters surveys speak to the way the buy-side and sell-side see this. Read More


Clash of the Hedge Funds: BioPharm Wars

Dec 1st, 2015 | Filed under: Equity Hedge Funds, Hedge Funds, Newly Added, Personalities in AI, Practitioners

CLVS fell nearly 70% on adverse news from the FDA. The tricky call for investors is whether the drop was (a) just enough, (b) not yet enough, or (c) perhaps too much to discount this blow. Two savvy analysts have recently expressed sharply opposed views on this.Read More


DB Global Prime: Hedge Funds See Steady Combined Inflows, But Lots of Action

Nov 29th, 2015 | Filed under: Asset Managers, Benchmarking & Performance Attribution, Equity Hedge Funds, Hedge Fund Strategies, Hedge Funds, Industry Size & Managers, Newly Added, Performance, Analytics & Metrics, The A.I. Industry

DB Prime's researchers have highlighted the multi-year outflows from EM to DM. EM equity inflows in particular reached a peak in early 2011. Since then EM equities have seen an outflow which has benefitted primarily Europe and Japan within the developed world. Read 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


Biggest Mistakes Hedge Fund Managers Make (video)

Nov 11th, 2015 | Filed under: Hedge Funds

What are the two most common mistakes that hedge fund managers make? How to avoid and/or fix them.Read More


No More Double-speak, Please! 6 Questions You Need to Answer

Nov 9th, 2015 | Filed under: Investor Relations

Guest columnist Diane Harrison looks at the six questions that managers must answer.Read More


Managing a Crisis Before it Manages You (video)

Nov 4th, 2015 | Filed under: Investor Relations, Sales & Marketing in the AI Industry

Cyber attack, SEC letter, hounded by the press... What is a hedge fund manager to do, or not? Read More


Study Shows Divergence in Fund Expense Disclosure

Oct 29th, 2015 | Filed under: Operations

The analytic company Convergence concludes from its research -- a study of 2,600 ADVs -- that there is a lot of variance in the “depth, breadth, and quality of expense disclosure practices” across fund types and strategies. Read More


Hedge Funds in a Time of Weakening Recovery

Oct 27th, 2015 | Filed under: Alternative Investments in Context, Finance & Economics, The Global Economy & Currencies

Though the recovery is showing signs of its age and weakness, this is still not the day for which tail-risk funds were designed, the moment of 'extreme distress' and victorious black swans. Thank heavens for that fact, and thank Eurekahedge for the news. 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


Merger Arb: News from Delaware’s Chancery Court

Oct 13th, 2015 | Filed under: Hedge Funds, Regulatory, Relative Value Hedge Funds

The court in Delaware clearly doesn’t believe that eliciting certain undramatic tidbits of news as supplemental disclosures is enough to earn plaintiffs’ attorneys their fees. Vice Chancellor Laster in particular has, in his own words, “been giving these [cases] a hard look for a while now,” and with Aruba the court puts its foot down. Read More


The Ups & Downs of Alternative Investing.

Oct 12th, 2015 | Filed under: Alternative Investments in Context, Media Coverage of Hedge Funds

It's that time of year when investment advisers are talking about asset allocation. Guest columnist Diane Harrison explains why you should never give up on your alternative investments.Read More


KPMG and Beschloss on Alternatives, Interest Rates and Women

Oct 4th, 2015 | Filed under: Structure of the Hedge Funds Industry

Investors may well add to their alternatives portfolio allocations in the months to come. What will this mean for small and medium sized hedge funds, many woman-headed funds among them? Read More


Corporate Governance: The Chairman/CEO Thing at Bank of America

Oct 1st, 2015 | Filed under: Business News

For years, actually for decades, the facts that corporations often combine the posts of chief executive and chairman of the board in the hands of a single powerful individual and that this is a U.S. based proclivity in particular have been the targets for high-minded complaint and pontification. So: how much do activist hedge funds care?Read More


Risk Parity: Riding an Unpleasant Arc

Sep 27th, 2015 | Filed under: Asset Allocation Models

Risk parity may just be one of many strategies that follow a familiar arc, from promising new idea to crowded trade to crowded unwind. If this is so: where in that arc is it now? Read More


Blame China; Blame the US Fed, whatever … August Hedge Fund Numbers Stunk

Sep 21st, 2015 | Filed under: Structure of the Hedge Funds Industry, The Global Economy & Currencies

Eurekahedge's latest round-up of hedge fund results by strategy and region makes quantitative what you, dear reader, probably knew: August was bad. The report also includes some discussion of HK/Shanghai arbitrage. Read More


The Taxation of Carried Interest: A New Republican Idea

Sep 20th, 2015 | Filed under: Business News, Regulatory Environment

When Tapper brought the hedge fund taxation question directly to Mr. Trump, Trump replied that he was still working on the details, but that when his full plan is released "the hedge fund guys won't like me as much as they like me right now." Why that is the perfect Trumpian sentence. Read More