For some time there have been questions raised about the sustainability of the business models of funds of hedge funds as a category. There is no doubt that they will continue to exist and that there will be winners as well as losers. But the rising tide of assets in the hedge fund industry is […] Read more »
Early View of Last Month from FRM
Fund of funds manager Financial Risk Management (FRM) produces a monthly “Early View” reviewing the hedge fund and market themes and sector performance for the previous month. The highlights for April 2012 were: “We had been concerned that the hedge funds with low market beta were too slow to rebuild risk through the first three months […] Read more »
Man Group Quarterly Figures – Still Minor Outflows
Man Group Plc announced first quarter 2012 figures today. 31 March 2012 FUM of $59.0bn which represents a 1.0% increase quarter on quarter: 31 Dec 2011 AUM: $58.4bn (as previously reported) Net outflows: $1.0bn Investment movement: $2.0bn FX & other: -$0.4bn 31 March 2012 FUM by product line: Guaranteed: $9.1bn Open-ended alternative: $25.0bn Institutional FOF: […] Read more »
Hedge Fund Industry Assets Recover to Last Summer’s High
Highlights from HFR Global Hedge Fund Industry Report 1Q 2012 Total capital invested in the global hedge fund industry increased to $2.13 trillion, surpassing the previous record of $2.04 trillion set at mid-year 2011. Investor preferences for fixed income-based Relative Value and less correlated Macro strategies, which have been favoured for over two years, accelerated […] Read more »
Millennium Capital Leads the Large US Managers in Europe
One of the consequences of the Credit Crunch of 2008/9 was a scaling back by hedge fund managers – they cut their gross, they restricted redemptions, and, in managing their companies through a traumatic period for the industry, the larger managers often reduced headcount or closed their offices in Asia and London. When there were […] Read more »
Hedge Fund Returns Are Path Dependent – As 2011 Illustrates
One of the things that is attempted on this website is to look at market action to help explain, or comprehend hedge fund returns. For example, two years ago a commentary was distributed on the significance of the quality factor in explaining returns in 2009 (see this article), and the impact of high correlation this […] Read more »
The Dangers of Mixing the Functions in a Hedge Fund Management Company
In an in-depth due diligence questionnaire of a hedge fund manager there is often a question about the outside business interests of the principals. For an organisation with a broad team of decision makers managing investments this is less of a concern. To the extent that there is a single presiding talent who sets the […] Read more »