Newsreel: Investors not giving up on injured hedge funds
Aug 10th, 2008 | Filed under: AAA NewsreelsComptroller Seeks Flexibility in Managing Pension Fund: To protect the retirements of New York’s public servants, the head of its pension fund wants only one thing: the ability to invest more in alternatives.
But mega-pensions aren’t the only ones who want more flexibility. A Bank of America survey found 30% of wealthy individuals were satisfied with traditional long-only investments during the past year while over 50% were satisfied with hedge funds.
Back down to earth for hedge funds of funds: The FT reports that New York actually wants more single strategy funds and less funds of funds. The paper says it’s a sign of the “growing maturity” of the hedge fund marketplace.
Hedge fund assets hit $3.8 trillion: Unlike estimates by database managers, this one is based on a survey of fund administrators. But is the definition of “hedge fund” the same?
State pension fund forms partnership with DE Shaw: Relationships between institutional investors are becoming more complex. South Carolina now “co-invests” with its managers.
Fledgling longevity swap market faces uncertain future: People, stop exercising and start smoking again. Pensions can’t afford you any more!
Reuters says that “hedge funds are looking less and less like a single asset class”. Problem is, they never were one asset class. But Reuters sounds surprised to report “fund of hedge fund managers are actively reshuffling their portfolios to take advantage of the next winning strategies.”
AQR drills for beta in new style: So-called “hedge fund beta” is usually delivered in the form of hedge fund sub-indices. But AQR now say “fund beta can be captured by using a quantitative, bottom-up security selection process that replicates the common elements of a particular hedge fund style strategy.” P&I reports they’ll put their money where their mouths are this September.
Business Week reports on the growing “Freaky Friday” phenomenon where hedge funds and banks switch roles.
Passive LDI gives fake security: Pimco says that simply replicating estimated future cash outflows doesn’t mitigate all risks for a pension plan.
We’re reported extensively on the dwindling ranks of small hedge funds as the industry consolidates. Should small fry give up? No way, says one consultant. Instead, here’s what they need.
