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

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

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

Don’t Fear Hedge Funds or Directional Strategies

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

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

A Paradox: Avoid Correlation by Following the Trends

April 2nd, 2012 | Filed under: Commodities, CTA, Today's Post, Institutional Investing

According to its advocates, trend following as a strategy works from the premise that price trends represent a process of consensus building. As a new idea takes hold, "the earliest adopters of this idea place their trades in accordance with it" and they get to watch in satisfaction as "a growing mass of market participants adopts the same thesis. Early adopters can surf the wave to the beach.Read More

Study finds that an increase in assets isn’t all that great after all. But it won’t kill you either.

September 7th, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post, Academic Research

What happens when a hedge fund gets a windfall of new investment dollars? Read More

How to not get caught in hedge fund gates

August 9th, 2011 | Filed under: Hedge Fund Industry Trends, Performance, Analytics & Metrics, Today's Post

By Christopher Faille One of the scariest things about hedge funds is the loss of liquidity that such an investment involves, with lock-up periods, redemption suspensions, wonder about what is in the “side pockets,” and worry about getting caught in the clanging gates.