Browsing: Hedge Fund Industry Trends

Hedge Fund Industry Trends

GFIA Credits Japan Funds with Excellent Risk Management

Jun 9th, 2014 | Filed under: Alpha Strategies, Hedge Fund Industry Trends

Some Japan-focused long/short equity funds did produce positive returns in April, swimming against the stream in a month when Topix, Nikkei, and TSE Mothers all fell. Read More


The Hedge Fund Fee Conundrum

Jun 1st, 2014 | Filed under: Fees, Hedge Fund Industry Trends, Hedge Fund Strategies

Andrew Beer, guest columnist, takes another look at the never-ending debate about hedge fund fees. Do they or don't they justify themselves?Read More


JOBS ACT Hedge Fund Marketing Strategy

Jul 9th, 2013 | Filed under: Hedge Fund Industry Trends

Don Steinbrugge, guest columnist, on what the US JOBS Act may mean for hedge fund marketing. Read More


Tolstoy, Happy Families and Asian Managerial Success

Jul 8th, 2013 | Filed under: Alpha Seekers, Alpha Strategies, Emerging markets, Hedge Fund Industry Trends, Hedge Fund Strategies

Asset managers within the Asian boutique universe keep telling GFIA that "asset raising is hard" in the present climate. It isn't going to become easy any time soon, but there is a new level of stability.Read More


A Third Wave of Alt-Industry Growth is Upon Us

Jun 30th, 2013 | Filed under: Alpha Strategies, Alternative Mutual Funds, Hedge Fund Industry Trends, Retail Investing

Private fund managers who want to be part of this wave, who hope to compete for the retail investment market with their absolute-return and non-correlation toolkit, shouldn’t think it is going to be easy. One of the sections of the SEI report is headed “understanding the hurdles.”Read More


Barclays: Growth Strategies as an Industry Matures

Jun 27th, 2013 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Hedge Fund Strategies

On of the key points of the new report from Barclays, Making It Big, is that there are four broad business strategies that define hedge fund managers: product specialists (PS); asset class specialists (ACS); multi-strategy managers (MSM); and diversified alternative asset managers (DAAM). This classification has implications for growth. Read More


A Year After the AOL Proxy Fight: The Simple Lesson

Jun 26th, 2013 | Filed under: Hedge Fund Industry Trends, Hedge Fund Strategies

It was surely not irrational for Starboard Value, a year ago, to ask its fellow AOL shareholders to withhold or withdraw the sort of 'trust' that Armstrong has requested of them on the subject of the hyper-local news experiment Patch.Read More


Rajaratnam Prosecution Sends a Signal: Traders Notice

Jun 25th, 2013 | Filed under: Hedge Fund Industry Trends, Legislation/Court rulings, Risk management

The arrest of Rajaratnam almost four years ago and the subsequent anti-insider enforcement activity doesn't of course come as news. But it raises fascinating questions about consequences: what have been the consequences amongst traders? Read More


Rice Elucidates Views on Managed Futures, Retail Investors

Jun 24th, 2013 | Filed under: Commodities, CTA, Hedge Fund Industry Trends

To encourage further exchange and understanding, I went back to Mr. Rice, after reading a comment from our reader, and asked him to expand on managed funds and their noncorrelation with traditional (largely equity) investment strategies. Tags, Agriculture, Commodities, Derivatives Read More


Marketing Closer or Poseur? How to Identify the First and Avoid the Second

Jun 13th, 2013 | Filed under: Alpha Seekers, Alpha Strategies, Hedge Fund Industry Trends

Guest columnist Diane Harrison takes a hard look at asset raising and the people who do it.Read More


PrevInvest: No Wind in Sails of Long/Short Equity

Jun 9th, 2013 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Hedge Fund Strategies

PrevInvest begins a new report by documenting the doldrums in which long/short equity is stuck. As a first approximation because in the post-crisis world, certain traditional forms of stock-picker virtue have gone unrewarded.Read More


The Wind and the Leaves: Causality in Commodity Prices

Jun 5th, 2013 | Filed under: Commodities, CTA, Derivatives, Hedge Fund Industry Trends

Three scholars find a very real possibility that there is a cause and effect relationship between index flows in the derivatives markets, at least the agricultural index markets, on the one hand and price moves in the underlying commodity on the other. Read More


Preqin on Global Alternative Assets and Learning Curves

Jun 4th, 2013 | Filed under: Hedge Fund Industry Trends, Private Equity

The pattern with respect to allocations by institutional investors to hedge funds since 2009 is somewhat different from that of allocations to private equity. As Preqin’s report explains, many institutions have long been familiar with hedge funds, their learning curve has flattened out so to speak, and they have established a target allocation for hedge funds considered as an asset class.Read More


Merger Arb: Dampers and Bright Spots

May 9th, 2013 | Filed under: Hedge Fund Industry Trends, Hedge Fund Strategies

Twelve ministries in the People's Republic of China, including the Ministry of Industry and Information Technology, have together released guidelines for accelerating M&A activity in key industries. this is one of the "bright spots" that may lighten up the future for the M&A world, though macro-economic realities in the U.S. and Europe are holding it back.Read More


Agecroft Partners Believes Hedge Fund Branding Drives a Majority Of Asset Flows

May 2nd, 2013 | Filed under: Hedge Fund Industry Trends

By Don Steinbrugge


Hedge Fund Replication: A Re-examination of Two Key Studies

May 1st, 2013 | Filed under: Alternative Beta & Hedge Fund Replication, Hedge Fund Industry Trends

Guest columnist Andrew Beer re-visits two significant studies on hedge fund replication.Read More


Hedge Funds as Metaphor: And Not in a Good Way

Apr 22nd, 2013 | Filed under: Hedge Fund Industry Trends, Media Coverage of Hedge Funds

One take-away from David Stockman's new best selling book is that the phrase "hedge fund" may well be on its way beyond descriptive significance. In the public realm, a "hedge fund" is now as much a metaphor as is a "Trojan horse." It is becoming a metaphor for any institution's failure to hedge. Read More


How Hedge Funds Need to Adapt Part II

Apr 21st, 2013 | Filed under: Hedge Fund Industry Trends, Hedge Fund Operations and Risk Management, Hedge Fund Strategies, Institutional Investing, Performance, Analytics & Metrics

Part II of a new SEI report on hedge funds and adapting to survival.Read More


Japan as Hedge Fund Opportunity

Apr 15th, 2013 | Filed under: Hedge Fund Industry Trends

All three classes of hedge fund outperformed the relevant index, Topix 1000, in the period since January 2004. Also, both broad based indexes and two of the HF indexes show a sharp uptick on the right hand edge of the graph, reflecting the ascension of Prime Minister Abe and the aggressive policies of the Bank of Japan.Read More


How Hedge Funds Need to Adapt: Part I

Apr 7th, 2013 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Hedge Fund Strategies, Performance, Analytics & Metrics

“Few managers would be surprised,” SEI says, “that nearly one-third of the institutions queried in SEI’s 2012 survey reported making their due diligence processes more robust over the last two years.” The new robustness in the search for the nature and sustainability of the funds’ edge involves a new granularity, the questioning of specific investment decisions in the context of portfolio construction models.Read More


Is This the End of the Gilded Age for Hedge Funds?

Apr 3rd, 2013 | Filed under: Hedge Fund Industry Trends

"America’s top 25 hedge fund managers make more than all the CEOs of the S&P 500 combined.”????--The Economist, October 2012 Hedge Funds have had an incredible run over the last 2 decades. The annual salaries and bonuses of the most successful managers have been amongst the highest paid to anyone, anywhere, ever. Astronomical wealth has kept everything from top end international property to luxury goods to private yachts afloat for many years. ?This is starting to change. Multiple headwinds of lackluster performance, increasing competition and invasive regulation are starting to bite.Read More


An Earnings Report Every Hedge Fund Manager Should Review

Mar 21st, 2013 | Filed under: Fees, Hedge Fund Industry Trends

Guest columnist Diane Harrison looks at the future of hedge fund fees.Read More


Smaller Hedge Fund Managers Outperform: A Study of Nearly 3,000 Equity Long/Short Hedge Funds

Feb 18th, 2013 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Hedge Fund Strategies, Performance, Analytics & Metrics

Beachhead Capital looks at performance in the long/short equity sector and finds that small funds outperform the large.Read More


Average hedge fund fee significantly lower than reported

Feb 14th, 2013 | Filed under: Hedge Fund Industry Trends, Institutional Investing

Guest columnist Don Steinbrugge looks at hedge fund fees.Read More


HF Investors and Managers Differ On Impact of New Regulations

Feb 6th, 2013 | Filed under: Hedge Fund Industry Trends, Regulatory

Forty-three percent of managers see Dodd-Frank as having a negative impact; 35 percent see it as having no impact at all; only 22 percent see it as a positive. The positive they see in it may simply be the presumed improved access to institutions that are “keen to invest in vehicles with some degree of regulated oversight,” in the words of Preqin's Amy Bensted.Read More


Portfolio Risk: The Case for Outsourcing

Feb 4th, 2013 | Filed under: Hedge Fund Industry Trends, Hedge Fund Operations and Risk Management

A FinCad white paper looks at the efficiencies and cost-effectiveness of outsourcing risk analysis.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


An Alternative Theory of Natural Selection

Jan 17th, 2013 | Filed under: Hedge Fund Industry Trends

Diane Harrison looks at marketing opportunities for hedge funds in 2013.Read More


Women and Alternatives: A Long-Deferred Tipping Point

Jan 16th, 2013 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, High-net-worth investors, Institutional Investing, Performance, Analytics & Metrics

If you are managing the portfolio of an institution that invests in hedge funds, you might want to ensure that some sizable portion of the HF-allocated assets go to funds managed by women-led firms. In this, you will have company. Read More


Top Hedge Fund Industry Trends Predicted for 2013

Jan 13th, 2013 | Filed under: Hedge Fund Industry Trends

Veteran hedge fund marketer and institutional investor Don Steinbrugge looks at some of the hedge fund trends for 2013.Read More


The Move to Managed Account Platforms

Jan 7th, 2013 | Filed under: Hedge Fund Industry Trends

Shane Brett looks at distribution and the pros and cons of managed account platforms.Read More


Like Wine: Hedge Funds Have a ‘Terroir’

Jan 3rd, 2013 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Performance, Analytics & Metrics

Hedge fund partners and traders in a given city socialize together, they talk shop, and they may have histories together in other local institutions before opening their respective hedge fund firms. They naturally develop locally distinctive ideas and practices, such as the value emphasis in Boston, or the relatively lower fees distinctive to Dallas.Read More


Hedge Fund Business Expenses: Like Shopping for Shirts

Dec 17th, 2012 | Filed under: Hedge Fund Industry Trends, Hedge Fund Operations and Risk Management

The smallest of the four groups of hedge fund firms, those with AUM under $250 million, control only 6.3 percent of the industry's assets, yet pay roughly 19 percent of the aggregate business expenses. It's tough to be small, better to be medium sized, still better to be large, though it isn't necessarily best to be extra large.Read More


GFIA on Asia for the Nimble and Not-so-Nimble

Dec 12th, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends

The lead-up to the late October Bank of Japan announcement constituted a moment of truth for opportunistic hunters of alpha. Start 22 Fund took profits in the mid-October rally and ended the month up 2 percent, despite generally weak equity markets. Carnico Japan was "less nimble," in the words of GFIA. Read More


Funds of Hedge Funds May Be Down, But Don’t Count Them Out

Dec 6th, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, High-net-worth investors, Institutional Investing

Away from the bleak headlines, the funds of hedge funds industry is quietly reinventing itself.Read More


A Fresh Look at Track Records and Risk

Nov 29th, 2012 | Filed under: Hedge Fund Industry Trends, Hedge Fund Operations and Risk Management, Risk management

In Jack Schwager's view, the hedge fund industry as a whole is not a "mirage" at all. But relying on the past track record of specific funds or strategies: that is a dangerous reliance upon a mirage. Perhaps suggest that Grandma should put her nest egg in a diversified fund of funds.Read More


Ernst & Young on Investor/Manager Splits

Nov 25th, 2012 | Filed under: Hedge Fund Industry Trends, Institutional Investing

Only a sliver of investors (2 percent) believe that regulation is effective in preventing the next crisis. Indeed, even the number of those who are neutral on that point is smallish, because a full 85 percent see regulations as ineffective for this purpose, though skepticism is not quite so intense on the matter of the value of regulations in protecting investor interests. 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


Lessons from the Sharks on Pitching a Fund

Nov 18th, 2012 | Filed under: Hedge Fund Industry Trends

Diane Harrison on sharks and marketing hedge funds.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


Hedge Funds and Their World: Slow Recovery Ahead

Sep 25th, 2012 | Filed under: Hedge Fund Industry Trends, Hedge Fund Regulation

Markets are bullish on the United States in particular, though this is so only with some obvious qualifications: they don’t expect that a go-go climate will return any time soon, but they do expect a slow-and-real recovery. Likewise, markets are modestly bullish on at least the north of Europe.Read More


Investors Unfiltered: Common Manager Pitfalls to Avoid in Meetings

Sep 6th, 2012 | Filed under: Hedge Fund Industry Trends

Diane Harrison addresses the reasons why investors give you money--or why they don't.Read More


AIFMD & the Co-domiciliation question

Aug 28th, 2012 | Filed under: Hedge Fund Industry Trends

Shane Brett addresses the question of co-domiciliation and its effect on the global hedge fund industry.Read More


A View Of, and From, Singapore, Part Two

Aug 23rd, 2012 | Filed under: Alpha Hunters, Hedge Fund Industry Trends

It seemed earlier this year that many investors, including hedge funds, were betting heavily that there would be a ‘hard landing’ for the economy of the People’s Republic. Where do you stand, we asked Douglas, hard landing or soft? 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


Casella on Future of Hedge Fund Industry, Part Two

Aug 2nd, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Hedge Fund Strategies, Institutional Investing

Mark Casella, leader of the U.S. alternatives group at PwC, explains that no manager "ever wants to put gates up or to announce a suspension," and talks about how the contract provisions that provide for such powers have been modified of late. This is part of the broader issue of the alignment of interests.Read More


Mark Casella on the Future of Hedge Fund Industry: Part One

Jul 30th, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Hedge Fund Strategies

Mark Casella, leader of the U.S. alternatives group at PwC, tells us why he thinks funds of funds still have a role to play in the future of the hedge fund industry, although "we have seen more and more institutions invest directly in hedge funds rather than through funds of funds." This is the first part of a two-part transcript of a broader discussion.Read More


More than $3 Trillion AUM for Top 100 Alternative Investment Managers

Jul 25th, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Hedge Fund Strategies, Infrastructure, Institutional Investing, Private Equity, Real Estate

The survey also asked that the asset managers state where their total assets are invested, using four geographical categories: Europe; Central/North America; Asia Pacific; Other. Commodity funds were easily the most heavily invested in C/NA, to the extent of 94 percent of their portfolios. Private equity funds are 61 percent invested in C/NA, and PE FoFs also have the majority of their portfolios there, at 54 percent.Read More


Dear SEC: Comments on the JOBS Act

Jul 19th, 2012 | Filed under: Hedge Fund Industry Trends, Hedge Fund Regulation, Private Equity, Real Estate, Regulatory

A veteran of hedge funds and private equity, Jeff Joseph offers some comments to the U.S. Securities and Exchange Commission on the JOBS Act and what this legislation has the potential to mean to the global alternative investment community.Read More


Your Summer Reading List: A Global Perspective on Alternative Investments

Jul 18th, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends

Shane Brett, managing director at Global Perspectives, UK, provides a series of alternative investment "beach reads."Read More