Comments on: Hedge Funds shouldn’t fear “The Blob” http://allaboutalpha.com/blog/2008/02/06/hedge-funds-shouldnt-fear-the-blob/ 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: Good to Go Pile . . . « Trading for the Masses http://allaboutalpha.com/blog/2008/02/06/hedge-funds-shouldnt-fear-the-blob/comment-page-1/#comment-80911 Good to Go Pile . . . « Trading for the Masses Fri, 08 Feb 2008 19:05:01 +0000 http://allaboutalpha.com/blog/2008/02/06/hedge-funds-shouldnt-fear-the-blob/#comment-80911 [...] Hedge Funds shouldn’t fear “The Blob” [...] [...] Hedge Funds shouldn’t fear “The Blob” [...]

]]> By: Simon Jacques http://allaboutalpha.com/blog/2008/02/06/hedge-funds-shouldnt-fear-the-blob/comment-page-1/#comment-80669 Simon Jacques Fri, 08 Feb 2008 05:29:24 +0000 http://allaboutalpha.com/blog/2008/02/06/hedge-funds-shouldnt-fear-the-blob/#comment-80669 The potiential of Hedge funds return on investment and fees varies a lot. The perfect efficiency is theoric. The journalist only looks on active manager fees and real expected returns variation among funds. Some Etf sellers openly claim that active alpha management is a new Baloney ! The same Phenomena occured in late 60's when old-school brokers and Wall-Street named Baloney!: the new portfolio created by Eugene Fama, Markowitz, James Tobin, William Sharpe new concepts. Years later, they became Nobel award winner, Yale,MIT,Chigago teacher and by the recognize entire financial market. The next finance innovation step is on this blog... Yes, it seems a litle bite complicated with the Greek letter symbols, the philosophy of alpha, the stats but in 2015, the content of this blog will be the average knowledge taught in the business schools. The potiential of Hedge funds return on investment and fees varies a lot.

The perfect efficiency is theoric.
The journalist only looks on active manager fees and real expected returns variation among funds.

Some Etf sellers openly claim that active alpha management is a new Baloney !

The same Phenomena occured in late 60’s when old-school brokers and Wall-Street named Baloney!: the new portfolio created by Eugene Fama, Markowitz, James Tobin, William Sharpe new concepts.

Years later, they became Nobel award winner, Yale,MIT,Chigago teacher and by the recognize entire financial market.

The next finance innovation step is on this blog… Yes, it seems a litle bite complicated with the Greek letter symbols, the philosophy of alpha, the stats but in 2015, the content of this blog will be the average knowledge taught in the business schools.

]]> By: Adam Sussman http://allaboutalpha.com/blog/2008/02/06/hedge-funds-shouldnt-fear-the-blob/comment-page-1/#comment-80370 Adam Sussman Thu, 07 Feb 2008 15:03:15 +0000 http://allaboutalpha.com/blog/2008/02/06/hedge-funds-shouldnt-fear-the-blob/#comment-80370 I would like to emphasize that the point I was making in my paper was not that hedge funds are equally susceptible to the indexing blob. My opinion is that any strategy that can be broken down into a set of repeatable rules will be commoditized. An index fund, ETF or exchange-traded derivatives product, is the end-game in the process of commoditization. However, I go on to say that there are hedge funds and other active managers who will be sources of innovation within the asset management industry and they will continue to collect their sizable fees for successful new products. Thanks, Adam Sussman Director of Research TABB Group I would like to emphasize that the point I was making in my paper was not that hedge funds are equally susceptible to the indexing blob. My opinion is that any strategy that can be broken down into a set of repeatable rules will be commoditized. An index fund, ETF or exchange-traded derivatives product, is the end-game in the process of commoditization. However, I go on to say that there are hedge funds and other active managers who will be sources of innovation within the asset management industry and they will continue to collect their sizable fees for successful new products.

Thanks,
Adam Sussman
Director of Research
TABB Group

]]>