Comments on: Man Group CEO on lock-ups and alpha… http://allaboutalpha.com/blog/2007/12/05/man-group-ceo-on-lock-ups-and-alpha/ Hedge funds, portable alpha, 130/30 and alpha-centric investing Fri, 19 Mar 2010 07:52:26 +0000 http://wordpress.org/?v=abc hourly 1 By: Bill aka NO DooDahs! http://allaboutalpha.com/blog/2007/12/05/man-group-ceo-on-lock-ups-and-alpha/comment-page-1/#comment-74975 Bill aka NO DooDahs! Thu, 24 Jan 2008 14:40:24 +0000 http://allaboutalpha.com/blog/2007/12/05/man-group-ceo-on-lock-ups-and-alpha/#comment-74975 @ Autocorrelation Aficionado: http://www.cxoadvisory.com/blog/external/blog1-24-08/ "In summary, presumably sophisticated hedge fund investors as a group chase past returns and fail to time their investments successfully." @ Autocorrelation Aficionado:

http://www.cxoadvisory.com/blog/external/blog1-24-08/

“In summary, presumably sophisticated hedge fund investors as a group chase past returns and fail to time their investments successfully.”

]]> By: Shelly Jacobs http://allaboutalpha.com/blog/2007/12/05/man-group-ceo-on-lock-ups-and-alpha/comment-page-1/#comment-68061 Shelly Jacobs Thu, 03 Jan 2008 19:07:03 +0000 http://allaboutalpha.com/blog/2007/12/05/man-group-ceo-on-lock-ups-and-alpha/#comment-68061 Simply giving the investor a line of credit, at LIBOR+, if he wishes to withdraw should be sufficient. to satisfy both liquidity and lockup desires. Simply giving the investor a line of credit, at LIBOR+, if he wishes to withdraw should be sufficient. to satisfy both liquidity and lockup desires.

]]> By: Autocorrelation Aficionado http://allaboutalpha.com/blog/2007/12/05/man-group-ceo-on-lock-ups-and-alpha/comment-page-1/#comment-60395 Autocorrelation Aficionado Sat, 08 Dec 2007 22:12:22 +0000 http://allaboutalpha.com/blog/2007/12/05/man-group-ceo-on-lock-ups-and-alpha/#comment-60395 Bill, Actually many studies have shown that hedge fund returns tend to be auto-correlated. Meaning good funds tend to do well and continue to do well, whereas a bad fund will tend to continue lower until it closes its doors. So are you telling me that an investor should stay in a losing fund, hoping that it will turn around? I think not. Bill,
Actually many studies have shown that hedge fund returns tend to be auto-correlated. Meaning good funds tend to do well and continue to do well, whereas a bad fund will tend to continue lower until it closes its doors. So are you telling me that an investor should stay in a losing fund, hoping that it will turn around? I think not.

]]> By: Bill aka NO DooDahs! http://allaboutalpha.com/blog/2007/12/05/man-group-ceo-on-lock-ups-and-alpha/comment-page-1/#comment-59595 Bill aka NO DooDahs! Thu, 06 Dec 2007 22:13:53 +0000 http://allaboutalpha.com/blog/2007/12/05/man-group-ceo-on-lock-ups-and-alpha/#comment-59595 Longer lock-ups will most likely give *investors* in these funds a better long-term return, even if the behavior of the funds is no different, because the long lock-ups will force many of these investors to ride out drawdowns, instead of selling at the bottom in fear (and looking for someplace with hotter returns to chase). Unless, for some reason, you believe that accredited retail investors somehow got a little "box o' maturity" that keeps them from behaving like their non-accredited, mutual-fund investing cousins. Longer lock-ups will most likely give *investors* in these funds a better long-term return, even if the behavior of the funds is no different, because the long lock-ups will force many of these investors to ride out drawdowns, instead of selling at the bottom in fear (and looking for someplace with hotter returns to chase).

Unless, for some reason, you believe that accredited retail investors somehow got a little “box o’ maturity” that keeps them from behaving like their non-accredited, mutual-fund investing cousins.

]]> By: Thursday links: momentum models « Abnormal Returns http://allaboutalpha.com/blog/2007/12/05/man-group-ceo-on-lock-ups-and-alpha/comment-page-1/#comment-59511 Thursday links: momentum models « Abnormal Returns Thu, 06 Dec 2007 17:00:47 +0000 http://allaboutalpha.com/blog/2007/12/05/man-group-ceo-on-lock-ups-and-alpha/#comment-59511 [...] What is the relationship between hedge fund lock-ups and alpha generation? (All About Alpha) [...] [...] What is the relationship between hedge fund lock-ups and alpha generation? (All About Alpha) [...]

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