Churning of Asian Hedge Funds Takes Its Toll

By Hedge Fund Insight staff   Only hedge funds based in North America had positive flows in both the first and second quarters of this year, according to data from Preqin. Net net hedge funds in Europe had positive flows in the first half of the year and hedge funds based in Asia-Pacific had net […] Read more »

Size Effect On Performance Still Applies To Hedge Funds in 2017

From Eurekahedge The graphic below shows how hedge fund returns have varied across fund sizes. For June 2017 year-to-date, medium sized hedge funds (US$100m – US$500m) posted the best returns with 3.53% gains, while small and large hedge funds were up 3.40% and 2.64% respectively. Over the past year, small sized hedge funds posted the best […] Read more »

Hedge Fund Industry Take On “A Modest Proposal”

By Diane Harrison, principal of Panegyric Marketing   Jonathan Swift, one of the great satirists of all time, published a disturbing and provocative essay, ‘A Modest Proposal,’ in 1729 suggesting a unique and terrible solution to Ireland’s famine crisis. In his piece, Swift recommended cannibalism as a wholesale solution to Ireland’s struggles with overpopulation, starvation, […] Read more »

Consultant Verus Negative on Outlook for Event Driven Hedge Funds

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By Hedge Fund Insight staff   In a recent report Verus, the investment consultant created out of the combination of Wurts and Strategic Investment Solutions, was constructive on the outlook for three out of five hedge fund strategies. The consultant gave forward-looking views across the broad hedge fund investment strategies as shown in the table below. […] Read more »

Bleak House (or The Outlook for Hedge Funds)

By Diane Harrison, principal of Panegyric Marketing   Charles Dickens’ Bleak House spins a tale of mystery, intrigue, family dynamics, and irony in the Victorian age that had readers gripped by its indictment of the English court system. While the novel is packed with intricate plot twists and turns, the main story line centers on the contested will case of […] Read more »

Graphic of the Day: What Hedge Funds Do To Pension Returns

From the Research Note “Hedge Fund-ing the Pension Deficit” by Cambridge Associates Research Note Conclusion Growth assets that can deliver attractive long-term returns with beneficial effects on total portfolio risk have clear value to plan sponsors, particularly as plans seek to recoup recent funding losses without increasing the portfolio’s risk level. Low beta–high alpha hedge […] Read more »

Spotlight on Merger Arbitrage at Paulson & Co

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By Hedge Fund Insight staff   Introduction – Part One This article is divided into three parts. The first part is the genesis of the article – the new supply of funds engaging in the strategy of merger arbitrage, including one from Paulson & Co. The second part is John Paulson’s writing on the strategy […] Read more »

Graphic of The Day: Dispersion of Sharpe Ratios In Alternative Mutual Funds

From AlphaCore Capital Today’s graphic comes from AlphaCore Capital LLC, a registered Investment Advisor from La Jolla California, and has been put together by Jonathan Belanger, CFA, the Director of Research. It was intended to show that using average returns is not an appropriate approach to working with alternative investment strategies. Dispersion of Sharpe Ratios […] Read more »

Dull YTD Returns for Most Hedge Fund Strategies – Distressed Funds Lag

From Eurekahedge   Hedge funds continued their recovery in Q4 with the Eurekahedge Hedge Fund Index up 0.88%1 in November while the MSCI World Index2 grew by 0.38% during the month. On a year-to-date basis, hedge funds are up 2.58% while underlying markets as represented by the MSCI World have gained 1.78%. November was dominated […] Read more »

Event Driven Down for Year as Hedge Funds Lose for Third Month

From Eurekahedge Pte of Singapore   Hedge funds posted their third consecutive month of losses with the Eurekahedge Hedge Fund Index down 1.75%1in August while the MSCI World Index2lost 6.66% during the month as fears over China’s economic outlook intensified with global equity markets seeing broad based declines. Despite the setback, hedge funds have outperformed […] Read more »