Age Matters More Than Size in Hedge Fund Performance, Says Study
When the study looked at the period after the financial crisis, however, considering performance from January 2009 through December 2013, the results changed. The cumulative return of small funds wa...
Commodity Supercycle Decline Might Be Finding A Bottom
Many commodities are reaching their cost floor and should be in a bottoming process, a Barclays report notes, as commodities after the supercycle appear to be approaching support levels not seen in 14 years.
Eric Peters Looks At Migrant Crisis Through Wary Swedish Eyes
Traveling the world and commenting on the human situation in his distinctive singular fashion, Eric Peters, Chief Investment Officer of One River Asset Management, notes Syrian refugees streaming across the for now wall-less Swedish boarder as he observes an unemployed group of what are oddly not women and children, but men heading into an un-affordable Stockholm housing market.
HFs: Signs Of Correction Fatigue - Commodities Next?
Hedge funds were net sellers of equities over the past four months, Societe Generale’s October 9 Hedge Fund Watch reports in “Early signs of fatigue,” a title that points to their analysis. But this “risk-off” stance appears to be shifting from 5th gear to neutral which could be among “initial signs this trend is inverting, which could imply the bottom of the current correction is about to be reached,” the bank’s Global Asset Allocation research team, headed by Alaln Bokobza, observed. If their analysis proves correct, a corollary impact might be felt in the volatility market as net long VIX...
Hedge Fund Buys Peru Defaulted Debt, Demands Full Payment
As a U.S. hedge fund snatches up old, defaulted bonds and pressures the government of Peru to pay-up in full, Peruvian leaders might do well to check their trade agreements carefully because what is likely to force their hand is one of the most controversial components of the Trans Pacific Partnership: the ISDS dispute settlement process. Peruvian court’s had ruled that the bonds are worth just $400 million and afforded the Peruvian government a degree of latitude in repayment terms. Gramercy, however, is claiming that with inflation and various other economic adjustments the bonds could be worth $5.1 billion and they are...
FBI Agent Reveals Insider Trading Investigation Tactics
A small criminal percentage of people on Wall Street tarnish the reputation for a vast majority that are honest and hardworking, said FBI special agent David Chaves. But the small percentage of those who break the law, cheating honest Wall Street participants, must be identified and prosecuted so as to deter future market manipulation. The man in charge of the FBI team that led to the largest insider trading prosecution in recent history, putting behind bars the likes of former hedge fund manager Raj Rajaratnam and McKinsey partner Rajat Gupta, said initially the FBI had very little visibility into the...
Can Hedge Fund Returns Be Replicated By ETFs?
If an investor can find actual alpha in a hedge fund investment they should be willing to pay 3 percent (management fee) and 30 percent (incentive fee), Nikki Tippins, managing director and head of Americas equity derivatives distribution at Morgan Stanley (NYSE:MS) said during a liquid alternatives panel discussion at the Morningstar ETF Conference. Acknowledging that Hedge Funds who can outperform a benchmark offer significant value, she said if alpha can't be found "don’t pay 2 percent / 20 percent for something that can be replicated.” Tippins acknowledge hedge funds are an important component of an institutional allocation and reiterated that...
Hedge Fund Allocations Growing, Market Neutral Benefits
Investors in the Barclay Capital “Midyear 2015 Global Hedge Fund Industry Trends and Allocation Outlook” have, on average, their largest portfolio allocation to alternative investments, a trend that has gained steam recently but one that has been intact for the past decade. Unlike the traditional 60 percent / 40 percent allocated towards stocks and bonds respectively, the traditional institutional portfolio looks different. Pension funds, family offices, private banks and insurance companies, on average, have a portfolio that looks more like 41 percent alternatives, 31 percent invested in stocks and 21 percent in fixed income. The allocation towards alternatives is strong...
Steinbrugge Looks To Re-insurance Hedge Funds
Most re-insurance hedge funds (along with many of the investments) use quantitative analysis to determine event probability and price their insurance premiums above the probability level. In an era where investors have been reaching for yield, competition has reduced return to a degree, but investment managers have the ability to forecast, with a reasonable degree of accuracy, future revenue and payout projections, which comforts investors. There are issues to consider when investing in a re-insurance hedge fund, which he outlines in the white paper, but one must consider that in general the investments often feature limited liquidity and lock-up periods....
Bridgewater Associates Explains Risk Parity... Again
Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. As the U.S. Federal Reserve today takes the bold move to keep interest rates unchanged, announced in a statement today at its September meeting, risk management strategies going forward are likely to move closer to center stage. Top noncorrelated Hedge Funds are anticipated to provide positive or at least relatively neutral performance during significant market downturns, as evidenced by hedge funds such as Balyasny Asset Management’s relative value strategy being relative flat and Conquest Capital, whose algorithmic...