By Morten Spenner, CEO of International Asset Management (IAM) Here are our forward-looking investment views looking into 2013. Market context – more constructive on the market environment Overall, we continue to observe a global economy which is recovering and with investor sentiment increasingly reflecting this. The most noteworthy recent developments have been the effective […] Read more »
Why The Vast Majority of Hedge Funds Underperformed Indices
By Dr. Harold Ehrlich, CFA, Ehrlich Associates, LLC Sad to say, the vast majority of all hedge funds worldwide have well underperformed virtually every major stock or bond index for some four years now. Adding insult to injury, investors in such funds have paid 2% management fees and 20% of (paltry) profits for the privilege […] Read more »
Closure Rate of Funds of Hedge Funds Up
According to HFR, investors continued to withdraw capital from Fund of Hedge Funds, which experienced $4.4 billion in 3Q outflows, the 6th consecutive quarter of outflows. Total capital invested in Fund of Funds increased to $635 billion, as the HFRI Fund of Funds Composite Index gained +2.4 percent for the quarter. The HFRI Fund of Funds […] Read more »
Benefits of Oaktree’s Expansion Into New Product Categories Recognised
From Fitch Ratings Fitch Ratings has completed a peer review of five rated Alternative Asset Managers (AAMs) and upgraded one of them, Oaktree Capital Group. Based on this review, Fitch has upgraded the Long-term Issuer Default Rating and unsecured debt rating of Oaktree to ‘A’ from ‘A-‘. The upgrade of Oaktree’s ratings reflects the firm’s […] Read more »
Preference for Dominance in a Narrow Sector
From http://streetid.com and ClaritySpring There are thousands of hedge funds competing in the marketplace. They come in all shapes and sizes, but all too often they approach investors with the same thesis. “The things that everyone sees all the time are long/short and global macro, basically people that are saying, ‘We’re gonna be better than […] Read more »
Market Disruption and Smaller Flows to Credit Funds Anticipated
By Manuel Arrive, Fitch France S.A.S., and Alastair Sewell, Fitch Ratings London Fitch Ratings expects credit markets to be less directional in the coming months. As a result, short duration, lower volatility and absolute return strategies with more performance contribution from bond picking will gain traction and are currently being launched by most advanced asset […] Read more »
FRM’s Current Preferred Hedge Fund Strategies
In its latest outlook, FRM, Man Group’s $19.5 billion fund of hedge funds and managed accounts business, identifies three potential sources of return for hedge funds. The preferences that FRM expresses are based on a specific market outlook. Europe’s largest independent FoF has an outlook on markets that remains broadly unchanged: FRM thinks that the […] Read more »
SEB Bias Towards RV and Macro In Outlook For Hedge Funds
Victor de Oliveira, Portfolio Manager and Head of Investment Strategy, SEB Luxemburg The strong start to the year came to an end in the second quarter. The fading effects of the European Central Bank’s Long Term Refinancing Operation (LTRO, three-year loans at 1 per cent interest) reduced risk appetite, while increasing volatility made the market […] Read more »
Hedge Funds’ Performance? Volenti Non Fit Injuria
By Theodore Brailey Many years ago, when I was but a hedge fund neophyte in short trousers (for it was Summer), I attended a weekend conference at Oxford University. I retain two memories from that weekend; the first was my introduction to Fannie Mae and Freddie Mac (even then everyone knew the implicit guarantee would […] Read more »
And How Have The Internal Processes Developed At The Endowment To Invest In Hedge Funds?
By Simon Kerr One of the best things about the flows into the hedge fund industry coming from American investing institutions is that a good proportion of them are from public bodies. Consequently there is very good transparency about the activities in the hedge fund sector of state pension plans, for example. Through the annual […] Read more »