Emerging Managers Have Delivered Twice the Returns of Established Managers
|Jun 21st, 2012 | Filed under: Hedge Fund Industry Trends, Today's Post | By: Guest||
By Peter Urbani*
Emerging Hedge Funds, defined here as those funds with less than 36 months of history and whose AUM < $300m, have generated excess compound average annual returns of +3.66% per annum over and above the return of their older ( > 36 month ), typically larger, brethren. This geometric rate of excess return compounds out to just under +100% cumulative over the 19.25 year period to end March 2012. It represents an arithmetic excess return, or alpha if you will, of +4.13% per annum.
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