Archive for October 2009


Alternative Viewpoints: Due to funds’ lack of persistence, the Sharpe ratio has no validity as an investment decision tool

Oct 29th, 2009 | By Guest | Filed under: Academic Research, CAIA Alternative Viewpoints Columns, Guest Posts, Today's Post

There have been many studies on hedge fund manager return “persistence”.  Persistence, after all, is a necessary precondition for the existence of alpha.  Like alpha itself, you might expect that the persistence of a good Sharpe ratio may be possible in less mature (more informationally inefficient) markets.  But a new study by Siewling Lay, CAIA, [...]

One reason why equity allocations may never fully recover from recent injuries

Oct 28th, 2009 | By Alpha Male | Filed under: CAPM / Alpha Theory, Today's Post

Institutional equity allocations have dropped along with the markets over the past 2 years. But even as the market rebounds, there may be some fundamental reasons why institutional investors will throw in the towel on "60/40" for good this time around.

The Ineichen Dialogues: A Green Pig Down Wall Street

Oct 28th, 2009 | By Alpha Male | Filed under: Featured Post

Regular readers will recognize the name Alexander Ineichen from his book Asymmetric Returns (see related post) and from his several popular monographs on the “Search for Alpha”.  CAIA charter holders may also recognize his name from the bottom of their charter – he is a board member of the CAIA Association. If you’ve read any of [...]

Regulators: Not rich? Hands off the display case.

Oct 27th, 2009 | By AAA Staff | Filed under: Hedge Fund Regulation, Today's Post

The name Goldstein is well known in the hedge fund world. The question, though, is whether the champion of marketing and solicitation rights has finally met his match.

Alpha’s Razor

Oct 26th, 2009 | By Guest | Filed under: Academic Research, Performance, Analytics & Metrics, Today's Post

Here's the perfect razor for giving your hedge fund manager a fee haircut.

The year of the rat, redeemed

Oct 25th, 2009 | By AAA Staff | Filed under: Hedge Fund Industry Trends, Today's Post

Last year's disastrous returns have been almost completely reversed, providing the alternatives industry with a sense of salvation. The question is whether the rebound is based on reality or irrational exuberance.

Fish, a near-death experience and other notes from Boston

Oct 22nd, 2009 | By Alpha Male | Filed under: Featured Post, Today's Post

What do you get when you mix a former president of Pakistan, the world's leading expert on marine ecosystems, various central bankers, several trillion dollars of hedge fund assets and some Nobel laureates?

2009: The year hedge funds finally stirred the regulatory hornets’ nest

Oct 21st, 2009 | By Alpha Male | Filed under: Hedge Fund Regulation, Today's Post

After decades of relative calm, hedge funds have managed to stir up a hornets' nest of regulatory activity in 2009.

You blinked and you missed it! The best for distressed has apparently come and gone

Oct 20th, 2009 | By AAA Staff | Filed under: Academic Research, Hedge Fund Industry Trends, Today's Post

Some say the long-awaited, once-in-a-lifetime distressed party has already come and gone, but others smell opportunity down the road.

Fisheries, tipping points, and disease “super-spreaders” in Boston

Oct 20th, 2009 | By Alpha Male | Filed under: Featured Post

A unique event in Boston this week takes a fresh look at the financial ecosystem.

Due Diligence Reports: A version of the “Sports Illustrated cover jinx”?

Oct 19th, 2009 | By Alpha Male | Filed under: Academic Research, Hedge Fund Operations and Risk Management, Today's Post

A recent review of investor-commissioned due diligence reports reveals that the biggest risk indicator might actually be the existence of the reports themselves.

Despite recovery, long-term misalignments remain in fund of funds sector

Oct 18th, 2009 | By Alpha Male | Filed under: Hedge Fund Industry Trends, Today's Post

Although the funds of funds sector seems to be on the mend, fundamental misalignments remain.

Finally, PBs offering up some “C” again

Oct 15th, 2009 | By AAA Staff | Filed under: Hedge Fund Industry Trends, Hedge Fund Operations and Risk Management, Today's Post

Prime brokers are starting to turn the credit taps on again, but is the "c" for credit, or consolidation?

Environmental Alpha

Oct 14th, 2009 | By Alpha Male | Filed under: Hedge Fund Industry Trends, Today's Post

A unique alternative investment event was held in New York on Wednesday - a conference on the environment that cast aside the usual scientific and policy debates and instead focused on how to "play the climate change theme". Here's what transpired...

As sun sets on 2009, are investors back in love with hedge funds?

Oct 13th, 2009 | By AAA Staff | Filed under: Hedge Fund Industry Trends, Today's Post

This year is ending a lot better than it began for many hedge funds and their investors. A thawing of relations? Perhaps. But how might that affect manager behavior as the year winds down?

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