With considerable debate ranging about Ranjan Bhaduri’s “Balls in the Hat” game (see related posting), Peter Clarke, the CEO of behemoth hedge fund manager Man Group apparently told a conference audience today that hedge fund lock-ups will bring institutions more alpha.  This, according to Thomson Investment Management News.

This might surprise players of the balls-in-the-hat game because while lock-ups do bring more returns (ceteris paribus), it’s not likely “alpha”.  Instead, it’s more likley just a fair market compensation for locking yourself up and throwing away they key.

In fact, Clarke didn’t actually say lock-ups “will bring institutions more alpha”.  According to Thomson, he actually said:

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