Equity Long/Short for Retail – Replication Solves the Issues

By Andrew Beer Chief Executive Officer of  Beachhead Capital Management The model for allocating to equity long/short funds is broken.  The mentality of most allocators is to chase the “hot dot” – that is, invest with a fund that performed well recently and hope the hot streak continues.  This approach is based on the discredited assumption […] Read more »

Is This What Hedge Fund Replication Is Supposed to Look Like?

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By Simon Kerr, Publisher of Hedge Fund Insight   When I received the press release headed “IndexIQ Announces December 2015 Performance of Its IQ Hedge Family of Investable Benchmark Hedge Fund Replication Indexes” I thought I would have a look at the (relative) returns. According IQ “the IQ Hedge™ Indexes comprise the first family of […] Read more »

Multi-Strat v Fund-of-Funds: Multi-Strat Has Won Out Because Of Flexibility

By Andrew Beer, Chief Executive Officer of Beachhead Capital   Investors and managers find themselves at an interesting inflection point in the evolution of the hedge fund industry. The growth of liquid alternatives has focused attention on what happens when talented hedge fund managers are asked to manage money within the constraints of a mutual […] Read more »

The Case for Liquid Alts from Credit Suisse Asset Management

From Credit Suisse Asset Management   The Appeal of Alternative Investments Hedge fund managers generally have a different focus and objective as well as access to a broader set of portfolio management tools compared to traditional fund managers, including: Focus on absolute returns Broader investment universe Ability to go short This flexibility is part of […] Read more »

Long/Short Equity Outlook Improving On Correlation and Dispersion Changes

By Juliana Hadas and Andrea Pompili of Neuberger Berman   The beginning of this decade was a challenging time for long/short hedge fund performance, with the overall universe having generated negative Jensen’s alpha (risk-adjusted excess returns)—see Figure 1. However, alpha has been rebounding starting with the second half of 2012—a trend we believe will continue. […] Read more »

Is This The Most Costly Graphic In The Hedge Fund Industry?

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By Simon Kerr, Publisher of Hedge Fund Insight The world is full trusims and half-truths as well as data and information. The hedge fund industry has a disproportionate share of all of these. And this graphic and it’s heading are a major contributor to the truism and half-truth columns: “An alarmingly high proportion of hedge […] Read more »

Top Quotations From Battle Of The Quants London

As I was saying

“An edge in analysis of social media is much more feasible than in analysis of news – there are only six traders globally who are successful trading off news analysis, ” Rob Passarella, DataSift.   “There is a huge leap to move from getting  interesting signals to a viable investment strategy,” Leigh Drogen, Estimize.   On […] Read more »