Alpha dogs of the hedge fund industry found to have taste for beta
|Nov 9th, 2010 | Filed under: Hedge Fund Industry Trends, Today's Post | By: Alpha Male||
Early last week, we told you about an annual study of the performance of young vs. “tenured” hedge funds and of small vs. large hedge funds. The data provider Pertrac found that, in keeping with previous years, the young bucks post higher returns than their tenured cousins and that the small funds beat the large funds. But what about alpha? The study did not identify whether much – or any – of that relative out performance was alpha. Young and small funds might have simply been more levered to equity markets. After all, why wouldn’t they? The only way to attract investor attention is often to post eye-popping returns. If the market flounders, well, it was worth a try…
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