Relative Value Hedge Funds
Peeling Back the Wrapper of Hedge Fund Strategies
Apr 13th, 2020 | Filed under: CAPM / Alpha Theory, Hedge Fund Strategies, Alpha & Beta, Equity Hedge Funds, Newly Added, Institutional Investing, Alpha Strategies, Event-Driven Hedge Funds, CAIA Alternative Viewpoints, Liquid Alts, Institutional Asset Management, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge Funds, Liquid Alternative Investiments, Allocating to Alts, Other Topics in Alts
By Aaron Filbeck, CAIA, CFA, CIPM, Associate Director, Content Development at CAIA Association During CAIA Association’s most recent Virtual Chapter event, Keith and I (virtually) sat down with Chris Tidmore, CFA, CPA at The Vanguard Group to discuss Vanguard’s recent whitepaper, “The Wrapper Matters: Comparing Liquid Alternatives to Hedge Funds”Read More
Global Hedge Fund Assets Shrink
Oct 20th, 2019 | Filed under: Hedge Fund Industry Trends, Hedge Fund Strategies, CTA, Industry Size & Managers, Equity Hedge Funds, Newly Added, Indexes, Event-Driven Hedge Funds, The Alts Industry, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge Funds, Structure of the Hedge Funds IndustryAccording 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
Hedge Fund Performance Gains: Investor Flow Losses
Aug 25th, 2019 | Filed under: Hedge Fund Industry Trends, Hedge Fund Strategies, Equity Hedge Funds, Newly Added, Indexes, Event-Driven Hedge Funds, The Alts Industry, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge Funds, Structure of the Hedge Funds IndustryGlobal 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
High-Yield Credit: The Case for Systematic and Discretionary Management
Aug 4th, 2019 | Filed under: Hedge Fund Strategies, Newly Added, The Alts Industry, Hedge Funds, Relative Value Hedge FundsA 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: Hedge Fund Industry Trends, CTA, Industry Size & Managers, Equity Hedge Funds, Newly Added, Indexes, Event-Driven Hedge Funds, The Alts Industry, Macro and Managed Futures Funds, Fees, Hedge Funds, Relative Value Hedge Funds, Structure of the Hedge Funds IndustryThe 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
Hedge Fund Index Backslides in May; Remains in Positive Territory
Jun 25th, 2019 | Filed under: Hedge Fund Industry Trends, CTA, Industry Size & Managers, Equity Hedge Funds, Newly Added, Indexes, Event-Driven Hedge Funds, Funds of Hedge Funds, The Alts Industry, Hedge Funds, Relative Value Hedge Funds, CommoditiesRed 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
Hedge Funds Performing Well Year-to-Date, But Trade Issues Loom Large
Jun 2nd, 2019 | Filed under: Hedge Fund Industry Trends, Hedge Fund Strategies, Equity Hedge Funds, Newly Added, Indexes, Event-Driven Hedge Funds, The Alts Industry, Hedge Funds, Relative Value Hedge FundsThe 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
HEDGE FUND ETFS: BETTER THAN THE ORIGINALS
May 12th, 2019 | Filed under: Hedge Fund Industry Trends, Retail Investing, Hedge Fund Strategies, Equity Hedge Funds, Newly Added, Event-Driven Hedge Funds, Alternative Investments in Context, ETFs, The Alts Industry, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge Funds, Allocating to AltsBy 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
Hedge Funds: The Strongest Quarterly Return Since the GFC
May 2nd, 2019 | Filed under: Hedge Fund Industry Trends, Equity Hedge Funds, Newly Added, Indexes, Event-Driven Hedge Funds, The Alts Industry, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge FundsMarch 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
Hedge Funds Stronger in January, Thanks to The Fed
Mar 3rd, 2019 | Filed under: Hedge Fund Industry Trends, Performance, Analytics & Metrics, Hedge Fund Strategies, CTA, Industry Size & Managers, Equity Hedge Funds, Newly Added, Benchmarking & Performance Attribution, Event-Driven Hedge Funds, Funds of Hedge Funds, The Alts Industry, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge FundsRisk-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
Eurekahedge: A Rough Time for the European Mandate Funds
Dec 25th, 2018 | Filed under: Hedge Fund Strategies, Equity Hedge Funds, Newly Added, Event-Driven Hedge Funds, The Alts Industry, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge FundsEuropean hedge fund managers continue to suffer from the uncertainties of the United Kingdom’s impending exit from the EU. The latest report from Eurekahedge says that European hedge funds have posted losses in eight of the first eleven months of 2018. They haven’t been in the positive numbers since July,Read More
Steamrollers, Geniuses and Market Crashes
Nov 27th, 2018 | Filed under: Hedge Fund Operations and Risk Management, Newly Added, Risk management, Operations, The Global Economy & Currencies, The Alts Industry, Risk Management Strategies & Processes, Hedge Funds, Relative Value Hedge Funds, Risk Management & Operations, Finance & EconomicsMcGraw Hill Education has brought out a new book by Bruce I. Jacobs, of Jacobs Levy Equity Management. The book, Too Smart for our Own Good, concerns “ingenious investment strategies, illusions of safety, and market crashes.” The thesis is that the financial crises of recent decades are the consequence ofRead More
Hedge Funds in a Time of Wear and Tear
Oct 21st, 2018 | Filed under: Hedge Fund Industry Trends, Hedge Fund Strategies, Equity Hedge Funds, Newly Added, Indexes, Event-Driven Hedge Funds, The Alts Industry, Hedge Funds, Relative Value Hedge FundsThe latest report from Eurekahedge tells us that Asia-focused strategies in the hedge fund universe are showing the wear and tear of the US/China trade dispute. The Eurekahedge Greater China Hedge Fund Index shows losses of 8.16% through the first nine months of the year. The Eurekahedge commentary observes thatRead More
Hedge Funds in the Slow-down Phase
Oct 9th, 2018 | Filed under: Hedge Fund Strategies, Equity Hedge Funds, Newly Added, Event-Driven Hedge Funds, The Alts Industry, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge FundsFidante Partners, part of the Challenger Limited Group, has issued a white paper on the performance of hedge funds of various strategies in the slowdown and recession phases of a business cycle. The report, written by Joachim Klement, Fidente’s head of investment research, posits that the world is now inRead More
Eurekahedge: Hedge Funds Trailing Behind Last Year’s Performance
Aug 19th, 2018 | Filed under: Hedge Fund Industry Trends, Hedge Fund Strategies, CTA, Industry Size & Managers, Equity Hedge Funds, Newly Added, Event-Driven Hedge Funds, The Alts Industry, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge FundsAccording to Eurekahedge, with the July numbers on hedge fund performance now available, 8.5% of hedge fund managers have posted double-digit gains in 2018 to date. Most of that gain is focused on those with a long/short equities mandate. That number is quite low. Eurekahedge contrasts it with the firstRead More
Central banks: Hedge fund friend or foe?
Aug 12th, 2018 | Filed under: Equity Hedge Funds, Newly Added, The Alts Industry, Hedge Funds, Relative Value Hedge FundsAre central bankers friends or foes of hedge funds and other seekers of alpha? In particular, what is the answer to this friend-or-foe question for the period since the global financial crisis a decade ago, where the central bankers with whom we are especially concerned are those at the USRead More
Eurekahedge: 2018 YTD Growth Positive but Unimpressive
Jun 24th, 2018 | Filed under: Hedge Fund Industry Trends, Hedge Fund Strategies, CTA, Industry Size & Managers, Equity Hedge Funds, Newly Added, Indexes, Event-Driven Hedge Funds, The Alts Industry, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge FundsThe newest Eurekahedge report says that total hedge fund assets have grown by $26.4 billion in the year to date (through May). The gain is the result of inflow, not of positive performance. Assets flowing in to the industry’s coffers YTD equal $30 billion, and one gets the net growthRead More
Preqin: Another Net Outflow Year Underway for Hedge Fund Industry
Apr 20th, 2017 | Filed under: Newly Added, Hedge Funds, Relative Value Hedge FundsIn the February issue of its Hedge Fund Spotlight, Preqin looks into its crystal ball and tells us of its near term (2017) predictions for the hedge fund industry. The article begins with a simple observation: hedge funds saw net outflows of assets under management (AUM) in 2016. Likewise, 54%Read More
Eurekahedge: Exodus from the Event-Driven Funds YTD
Oct 23rd, 2016 | Filed under: Equity Hedge Funds, Newly Added, Event-Driven Hedge Funds, Hedge Funds, Relative Value Hedge Funds, Commodities, Allocating to AltsThe event-driven hedge fund space is the most troubled in a generally troubled time for the industry. According to the new Eurekahedge report, the event-driven strategy “has seen US$14 billion investor redemptions over the past nine months,” and $10.7 billion over just the past six months. The first nine monthsRead More
Eurekahedge on Outflows, Performance and Tail Risk
Sep 27th, 2016 | Filed under: CTA, Equity Hedge Funds, Newly Added, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge Funds, CommoditiesEurekahedge, a provider of hedge fund industry news since 2001, has released its report about the state of the industry in August 2016. Among the key points: August was the fourth consecutive month of outflows. Although preliminary, the data for the month suggests a net asset outflow of $7.5 billion.Read More
Eurekahedge: Redemptions Exceeding New Investment for HFs Worldwide
Sep 5th, 2016 | Filed under: Commodities, Hard metals, Newly Added, Commodities: Examples, Energy, Hedge Funds, Relative Value Hedge Funds, CommoditiesHedge funds have now seen three consecutive months in which redemptions have exceeded new investment, for a net outflow. The net outflow for July alone was $5.7 billion. Fortunately, July also saw performance based gains of $10.5 billion, so the total assets under management grew slightly. The table below adaptedRead More
Waiting for Normalization: Issuing Convertibles
Aug 2nd, 2016 | Filed under: Newly Added, Hedge Funds, Relative Value Hedge FundsA moderate increase in the issuance of convertible bonds globally over the last three years came about only after a long post-crisis decline. At the convert market’s peak, in 2007, issuers placed $160 billion of these instruments. The placement for 2008 was only half that. By 2012 the market wasRead More
Brexit and Hedge Fund Strategies
Jun 30th, 2016 | Filed under: Currencies, Equity Hedge Funds, Newly Added, The Global Economy & Currencies, Hedge Funds, Relative Value Hedge Funds, Finance & EconomicsHow 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
Eurekahedge: Distressed Debt Managers Led the Tables in May
Jun 28th, 2016 | Filed under: Equity Hedge Funds, Newly Added, Event-Driven Hedge Funds, Hedge Funds, Relative Value Hedge FundsThe latest report from Eurekahedge, in its tracking of the health of the hedge fund industry worldwide and month by month, indicates that hedge funds were up 0.40% in May. Reversals in commodity prices in the middle of the month, and weak equity performance in developing markets, both had anRead More
Challenges to Mergers: Not So Automatic Anymore?
Jan 31st, 2016 | Filed under: Newly Added, Regulatory Environment, Legislation/Court rulings, The Alts Industry, Hedge Funds, Relative Value Hedge FundsThe 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
M&A: Are the Delaware Courts Becoming Intrusive?
Nov 8th, 2015 | Filed under: Regulatory Environment, Legislation/Court rulings, Relative Value Hedge FundsIn 2014 it seemed possible that investment bankers could shrug off the Rural Metro decision as an anomaly; that is, as an example of how bad cases make bad law. But if a pending decision in the Supreme Court upholds the Chancery Court, they'll know they're dealing not with an anomaly but with a trend.Read More
Merger Arb: News from Delaware’s Chancery Court
Oct 13th, 2015 | Filed under: Regulatory, Hedge Funds, Relative Value Hedge FundsThe 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