Jaeger predicts year of alternative beta, the death of “black boxes.” Advocates “scenario based” portfolio construction.
Jan 19th, 2009 | Filed under: Guest Posts, Today's Post
Special to AllAboutAlpha.com by: Dr. Lars Jaeger, Partner, Partners Group…
For a long time, many investors have regarded hedge funds as an investment class that generates absolute returns by means of managers’ sophistication in extracting inefficiencies from the complexity of the global capital markets. However, the current financial crisis has forced investors to reconsider this belief. Even before 2008, the hedge fund battlefield had been littered with the bodies of secretive funds such as LTCM, Quantum, Tiger, Niederhoffer, and Beacon Hill, all of which failed spectacularly in comparably much less severe market environments. More…
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Mathematical models or no mathematical models – the present crisis is just on account of too much greed and throwing all common sense to winds.Transparency, Strict regulations and some innovative strategies are some of the things which we should act on to see the hedge fund industry cross this hurdle.
[...] funds as alternative beta instrumentsLars Jaeger suggested that investors should view hedge funds as sources of alternative beta, which I take to [...]