From Lyxor Aset Management: The Event Driven space also produced solid results in October. Special Situation funds returned 1.1% (10% YTD). These funds are becoming like more traditional L/S equity managers. They maintained a net equity exposure at 44% and net credit exposure of 19%. Merger Arbitrage funds were up 1.4% but managers reduced risk, […] Read more »
Why Fee Reduction Is The Purest Form Of Hedge Fund Alpha
By Andrew Beer, Chief Executive Officer of Beachhead Capital In this note, we examine the relationship between the hedge fund fee structure and how it impacts alpha. In the early days of the industry, higher management fees were designed to cover costs of a deep and rigorous research and investment process; performance fees were meant […] Read more »
GAM Insight – Equity Hedge and Event Driven Managers Ride Trends to Gains in October
From Global Asset Management October got off to a tentative start, with investors focused on the US debt ceiling impasse. This issue was temporarily resolved by mid-month and markets broadly rallied from there, with equities, credit and bonds all moving higher. Many equity hedge and event driven managers reaped the rewards from keeping their gross […] Read more »
The Event-Driven Asset Class in a Rising Rate Environment
By Paul Hoffmeister and Thomas F. Kirchner, CFA, of Quaker Funds One of the most common concerns today among financial advisors seems to be the prospect of rising long-term interest rates in the United States and what to do with U.S. fixed income exposures. In search of a potential solution, we examined the history of […] Read more »
Asian Hedge Fund Trends Include Consolidation Pressure
By GFIA of Singapore Historical overview GFIA began coverage of the Asian hedge funds industry in September 1998. At that time the industry was tiny and all participants mostly knew each other. The Asian crisis was still unfolding, and the industry was a collection of maverick specialists. It was another five years before the industry […] Read more »
Icahn Tops Activist Activity in 3Q
From Activist Insight In this article from “Activism Monthly”, recent trends in shareholder activism are tracked and uncovered after a busy third quarter. Activity rate As anticipated, the number of Schedule 13D filings (i.e.initial disclosures of US activist positions) fell in quarter three, from 33 in each of the first two quarters to 25 […] Read more »
The CTA Industry Is Not Suffering From Capacity Issues
By James Skeggs, Senior Director, Global Co-Head of Advisory Group at Newedge In the last two years, the CTA industry has grown to manage about $330bn in investor capital. Concurrently, the industry has found itself in a drawdown that has lasted 29 months, which at its worst was 11.7% below its peak in 2011. Some […] Read more »
Hedge Fund Beta Exposure of Towers Watson Clients
From Hedge Fund Insight staff In a recent paper Towers Watson provided an overview on the smart beta investment thesis and some of the more common and implementable strategies. According to the consultants smart beta techniques are worthwhile pursuing in asset classes that have historically been expensive, difficult to access and/or illiquid in nature. The […] Read more »
Why Emerging Hedge Fund Managers Outperform
Andrew Beer, Chief Executive Officer of Beachhead Capital, wrote an excellent research note recently affirming that the widely known conception that emerging hedge fund managers outperform their more seasoned and larger peers was supported by the available data. This graphic is the nub of the explanation of why this can happen in the case of […] Read more »
FRM See A Strong CTA Bounce Back As Unlikley In Monthly View
From FRM Investment Management The HFRX Global Hedge Fund Index was positive in September, +0.96%, the majority of strategies ending the month with positive returns. Equity Long-Short managers were amongst the best performing strategies, benefitting from the equity market rally across regions in the first half of the month. Given the large moves seen in […] Read more »