Archive for March 2010


How to attract institutional investors: get an edge, manage risk, and emphasize pedigree

Mar 31st, 2010 | By AAA Staff | Filed under: Hedge Fund Industry Trends, Today's Post

The pendulum has clearly switched to investor from manager in the post-2008 institutional allocation world. The question is whether managers can do what it takes to get past the velvet rope and into the institutional investor party.


CFA Research Foundation takes a first crack at writing the history book of the 2008 financial crisis

Mar 30th, 2010 | By Guest | Filed under: Academic Research, Today's Post

How will history remember 2008? A "monograph" on the financial crisis assembled by the CFA Research Foundation finds no easy answers.


Family offices taking a shine to private equity: report

Mar 29th, 2010 | By AAA Staff | Filed under: Private Equity, Today's Post

Family offices have long been enamored with alternative investment managers. A new survey suggests private equity funds may be next in line.


What US college basketball can teach us about “survivorship bias”

Mar 28th, 2010 | By Alpha Male | Filed under: Academic Research, Performance, Analytics & Metrics, Today's Post

On April 6th, 2010, the only team remaining in the NCAA Men's basketball tournament will have a record of 6-0. Imagine trying to extrapolate that team's record across all 65 tournament participants.


Hedge funds’ poorer cousins are finally, maybe, starting to catch up

Mar 25th, 2010 | By AAA Staff | Filed under: Private Equity, Today's Post

Private equity is unfortunately living up to its reputation as the poor cousin of hedge funds, but things are slowly beginning to turn around, according to a recent report.


Want media coverage for your hedge fund? Think twice.

Mar 24th, 2010 | By Alpha Male | Filed under: Academic Research, Hedge Fund Industry Trends, Today's Post

Stocks with high media coverage tend to produce lower returns because, it is suggested, their investors behave a certain way. So why on earth would an un-traded security such as a hedge fund face the same fate?


Activist “Leopards” found not to change spots that easily

Mar 23rd, 2010 | By Alpha Male | Filed under: Academic Research, Hedge Fund Industry Trends, Today's Post

Hedge fund activism takes practice. So it comes as no surprise that its most experienced practitioners tend to practice it a lot.


7 Questions for Damian Handzy, CEO of Investor Analytics

Mar 22nd, 2010 | By Guest | Filed under: Today's Post

By: Andrew Saunders, Director, EFX Prime Services, Member of the Editorial Board of AllAboutAlpha.com. In the words of a friend of mine, the business of risk “is brisk.” One of the reminders of 2008 was that in times of stress, correlations do indeed go to one, and many of the tools available fail miserably. Here [...]


Report finds hidden reservoir of lendable securities

Mar 21st, 2010 | By AAA Staff | Filed under: Hedge Fund Operations and Risk Management, Today's Post

Securities lending is alive and well, but it's not just about institutional assets anymore. A new report by Finadium points to the yet-untapped potential riches of fully paid retail brokerage assets.


From Altruism to Alternative Investment: The “Three Pillars” of a carbon markets institution

Mar 18th, 2010 | By AAA Staff | Filed under: Academic Research, Institutional Investing, Today's Post

In a world where choosing plastic over paper is deemed a deadly sin, carbon credits trading has gained strong momentum, particularly among institutional investors looking to allocate to "green" strategies and managers. But research suggests the practice is far more complicated than the theory.


Study: Private equity managers’ incentives may be twice as high a previously thought

Mar 17th, 2010 | By Alpha Male | Filed under: Academic Research, Private Equity, Today's Post

Ever noticed that the marketers of alternative investments are just as excited about good returns as the portfolio managers - even though they may not share in any performance fee?


Fat tails: For hedge fund investors, the last free item on the lunch menu

Mar 16th, 2010 | By AAA Staff | Filed under: Academic Research, Performance, Analytics & Metrics, Today's Post

Thought there was no such thing as a free lunch? For hedge fund investors, there apparently is, according to a new research study, especially if they're looking to avoid a little kurtosis.


Regulators take note: New research finds mutual fund managers do better, not worse, when they also manage “side-by-side” hedge funds

Mar 15th, 2010 | By Alpha Male | Filed under: Academic Research, Retail Investing, Today's Post

Past research has shown that when mutual fund companies offer hedge funds, mutual fund performance suffers. But a new study finds that when individual mutual fund managers also manage hedge funds, this actually helps the mutual fund performance.


Study: Hedge funds’ role in 2008 market drawdown “questionable”

Mar 14th, 2010 | By Alpha Male | Filed under: Academic Research, Hedge Fund Industry Trends, Today's Post

A comprehensive review of the events of Q3 and Q4, 2008 show that hedge funds may not have been the liquidity providers they have been made out to be (at least, in equity markets). But even if not, it seems they didn't really exacerbate the sell-off either.


Exchange-listed hedge funds: The last ones voted off the island

Mar 11th, 2010 | By AAA Staff | Filed under: Academic Research, Hedge Fund Industry Trends, Today's Post

As a new regulatory regime for hedge funds continues to unfold, hedge funds listing on exchanges seems oh-so 2007. But a recent academic study finds that a surprise peripheral benefit is survival.