Family offices are viewed as having a series of advantages as investors in hedge funds: Family offices tend to have long-term investment horizons. They tend to want to live with decisions for some time – as a source of “sticky money” they won’t flip a multi-year investment proposition after a couple of bad quarters. The […] Read more »
Out of the Box – Graphic of the Day – Why Hedge Funds Will Continue to Grow
By Simon Kerr One of the advantages of looking at the activities of institutional investors is that their behaviour follows decision-making which stands for years at a time. The Investment Committee of a pension plan changes the strategic asset allocation say every 5 or more years. There may be a decision made to have […] Read more »
PODCAST FIVE – Sources and Types of Investor Demand As Seen by Third Party Marketers
Two 3PMs (James Palmer and Jonathan Lee) discuss the state of the industry with Simon Kerr. Clicking on the link will open a page containing the sound file – download (mp3 format) or play in your browser. The use of a graphic equaliser will probably help the listening experience. PART ONE (19.25) Introduction to speakers […] Read more »
A Shift in Risk Appetite?
By Simon Kerr I believe in Marshallian K – so excess money creation goes into financial assets if the real economy doesn’t need it. This is what is going on now in American financial markets. We are seeing narrow money creation but not broad money growth. The St. Louis Federal Reserve is showing that the […] Read more »
Two Sides of a Short Position – A High Quality Argument on Netflix
>During my time as an analyst of hedge funds in 2000-2002, and later as a consultant working on portfolio management and risk management issues with hedge fund portfolio managers, I have been granted the privilege to hear the fundamental cases for positions taken by very good managers. Hearing about a single position in detail gives […] Read more »
Hugh Hendry on Debt Deflation
By Simon Kerr At one time Hugh Hendry, manager of the Eclectica Fund, used to write monthly commentary and distribute a full attribution for fund returns at the same time. Now he writes manager letters of some length periodically, but still informs his investors about risks assumed and how the P&L has been shaped […] Read more »
Borrowing, Shorting and a New Wave of Talent for Hedge Funds
> The International Securities Lending Association held a briefing last week which disclosed some good industry level data on stock/security borrowing: the arrangements that facilitate shorting. One of the effects of the Credit Crunch of 2008/9 was that counterparty risk became a major concern. Who you lend to, the quality of collateral, and documentation related […] Read more »
Proposed EU Short Selling Disclosure Regulations Bad for Large HF Groups and the Market
Proposed short selling disclosure regulations announced in the week before last by the European Commission (EC) are too stringent and threaten market efficiency in a general sense. Specifically, implementation of the regulations as currently drafted would be very damaging for larger hedge fund groups. Shorting and Market Efficiency Hedge funds, along with proprietary trading capital, […] Read more »
Podcast 3 – A Q&A with Two Third Party Marketers of Hedge Funds
Click on the emboldened header (e.g Part One) to link to the sound file. Clicking on the link will open a page containing the sound file – download or play in your browser Part One (8 minutes) Clicking on the link above will open a new window with two choices available: download the podcast […] Read more »