By Hedge Fund Insight staff Unintended consequences of convoluted regulations are hindering hedge fund managers from boosting returns for their investors. According to findings from analytics firm OpenGamma, hedge funds can now be charged an eye watering 70% additional margin because of regulatory changes, destroying returns as a result. A staggering cost to absorb, particularly […] Read more »
KKR Addresses Its Mis-Step In Acquiring Prisma Through PAAMCO Deal
By Hedge Fund Insight staff It was announced today that PAAMCO and KKR Prisma are to form a Strategic Partnership to create a new liquid alternatives investment firm. As PAAMCO has been fiercely independent and Prisma was acquired by Private Equity giant KKR in 2012 to give growth to its’ liquid alternatives business this has […] Read more »
UBS O’Connor Stalls in 2015
By Hedge Fund Insight staff Approximately 25% of O’Connor and HFS performance fee-eligible assets exceeded high-water marks as of 31 December 2015, an improvement from 21% as of 30 September 2015, continuing to reflect challenging market conditions in the fourth quarter. Read more »
KKR Excited By The Potential For Growth Of European Credit Through Avoca
By Hedge Fund Insight staff KKR is in the process of acquiring European credit manager Avoca. During the Fourth Quarter 2013 Earnings Conference Call Scott Nuttall, the Global Head of Capital & Asset Management at KKR & Co LP, talked enthusiastically about the business prospects of Avoca within the KKR framework. Nuttall said that Avoca […] Read more »
Chart Of The Day – Operating Margins Across Hedge Fund AUM Range
By Hedge Fund Insight staff Today’s Chart Of The Day comes from the Citi Prime Finance 2013 Business Expense Benchmark Survey released this week. We have known for some time that the balance of supply and demand post 2009 has been such that it has meant that hedge funds, even very well known and large […] Read more »
Factoids on Funds of Hedge Funds
NOTES ON BUBBLES: 1. Net return gaps 330 bps (5-year), 210 bps (3-year), 160 bps (1-year). FoHFs offer lower volatility than single managers (lower standard deviation) and their correlation to broad indices on a 1-, 3- and 5-year basis is lower than single managers. 2. The traditional 1 & 10 fee model is no longer […] Read more »