Archive for April 2010


Be it resolved: Hedge funds (might) be worth the price

Apr 29th, 2010 | By AAA Staff | Filed under: Investment Management Fees, Today's Post

The debate over whether hedge funds are worthy of the management and performance fee structures they charge will likely live on in perpetuity, but a recent in-the-flesh pow-wow on the topic has raised some interesting angles on whether hedge funds are worth the price.


What NASCAR Can Teach Us About Return Persistence

Apr 28th, 2010 | By Guest | Filed under: Academic Research, CAIA Alternative Viewpoints Columns, CAPM / Alpha Theory, Guest Posts, Today's Post

At the very least, NASCAR and Formula One share two things in common with the alternative asset management industry...


An Alternative Richter Scale

Apr 27th, 2010 | By Alpha Male | Filed under: Hedge Fund Industry Trends, Today's Post

Alexander Ineichen, the Jon Stewart of the alternative investment industry, once again uses humor to tell the truth.


Dazed and confused, but at least on a path out of the woods

Apr 26th, 2010 | By AAA Staff | Filed under: Hedge Fund Industry Trends, Today's Post

The woods are less thick, and there is more light coming through, but hedge fund managers are still leery about whether the industry has seen the worst.


Newsreel: Fees – the volcanic ash cloud hanging over Hedgistan

Apr 25th, 2010 | By Alpha Male | Filed under: AAA Newsreels, Investment Management Fees, Today's Post

Like the ubiquitous volcanic ash cloud story, the hedge fund fee story kind of floats around for a while, then reemerges without warning to steal the headlines.


UCITS and NEWCITS: A better mousetrap?

Apr 22nd, 2010 | By AAA Staff | Filed under: Hedge Fund Regulation, Today's Post

UCITS-structured hedge funds continue to be the trend du jour for 2010, but the jury is still out on whether they are the best route to delivering liquidity, transparency and compliance.


What’s just under the BRICs

Apr 21st, 2010 | By Guest | Filed under: Hedge Fund Industry Trends, Today's Post

Note from the editor: To avoid the ash cloud in Europe, I have been trying to re-route from Hong Kong to Sao Paulo via Johannesburg. Alas, no such luck. But in lieu of my hoped-for African stop-over, AllAboutAlpha.com Editorial Board member Ranjan Bhaduri and his colleague Bob Doyle tell me what I'll be missing. (Frankfurt, I am now told, isn't such a half-ash place after all.)


European pensions to hedge funds: Wherefore art thou Romeo?

Apr 20th, 2010 | By AAA Staff | Filed under: Institutional Investing, Today's Post

Alternative investments are back in favor with European pension funds, according to a new study by Mercer. But a Montague-Capulet-style feud could potentially keep the star-crossed lovers apart.


Japanese researchers argue there are many ways to skin a kat when it comes to hedge fund cloning

Apr 19th, 2010 | By Alpha Male | Filed under: Academic Research, Alternative Beta & Hedge Fund Replication, Today's Post

A new paper tries to make an "extension" of the so-called "Kat-Palaro" model of hedge fund replication. According to its authors, it would have worked way better in 2008 (at least for replicating a CTA index).


Bain & Co.: Private equity downturn “rearranged established rules, reset expectations and planted the seeds of PE’s next phase”

Apr 18th, 2010 | By Guest | Filed under: Private Equity, Today's Post

A new report from consultancy Bain & Co., reminds us that private equity is notoriously cyclical. The question now is "What new direction will the industry take this time around?"


All clear folks: It’s safe to go back in now

Apr 15th, 2010 | By AAA Staff | Filed under: Hedge Fund Industry Trends, Today's Post

A new survey suggests institutional investors are once again putting money into hedge funds, though not necessarily where or how one might expect.


Laurels and darts for Markopolos’s new book “No One Would Listen”

Apr 14th, 2010 | By AAA Staff | Filed under: Hedge Fund Operations and Risk Management, Today's Post

Harry Markopolos, the now-famous Madoff whistleblower, has put in words his story of how (and why exactly) no one listened to his repeated calls that Bernard Madoff was a giant fraud.


Hedge fund strategy sub-indices found to be a little too “consistent” with each other

Apr 13th, 2010 | By AAA Staff | Filed under: Academic Research, Performance, Analytics & Metrics, Today's Post

A study of seven hedge fund strategies concludes that there is an uncomfortably high level of "consistency" among their returns. So much for non-correlation...


What’s the difference between hedge funds with fund-of-funds clients and those without them?

Apr 12th, 2010 | By Alpha Male | Filed under: Academic Research, Hedge Fund Industry Trends, Today's Post

A study shows that prior to 2009, hedge funds with fund-of-funds clients seemed to outperform the rest of the hedge fund universe. But last year's dismal performance of the funds of funds indices shows this isn't always the case.


Academics dabble in vexillology to better predict hedge fund fraud

Apr 11th, 2010 | By Alpha Male | Filed under: Academic Research, Performance, Analytics & Metrics, Today's Post

What can you do if you don't have any information on a hedge fund manager's regulatory record? Turns out you can divine a lot by looking for "performance flags."