All entries by this author

PE Firms: Sweet little bunnies or the “Killer Rabbit of Caerbannog”

Apr 24th, 2011 | Filed under: Private Equity, Today's Post

Private equity managers arguably bit off more than they could chew in the pre-crisis, credit-crunch world. Now, several years on, PE-funded companies have managed to survive, mutate and thrive, according to a new report.


From poison pens to poison pills: New, improved, and definitely more bitter for activist hedge funds

Apr 19th, 2011 | Filed under: Hedge Fund Industry Trends, Institutional Investing, Today's Post

Much to the chagrin of activist hedge fund managers, poison pills are making a comeback - in new and more lethal forms. For managers in particular, reading the label and following the directions is more important than ever.


Note to migrating ducks: Watch your flight path

Apr 18th, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post

Predictable patterns are easy game for hedge funds.


Turn that tap off! The search for illiquid investments is on…

Apr 13th, 2011 | Filed under: Hedge Fund Industry Trends, Institutional Investing, Today's Post

It's getting easier to lead an institutional manager to illiquid strategies - not water - according to a recent survey by eVestment Alliance and Casey Quirk. But after what happened in 2008, why would they drink?


Fiduciary Alpha

Apr 12th, 2011 | Filed under: Featured Post, Hedge Fund Regulation, Today's Post

Fiduciaries think of a client's needs before their own - sacrificing the latter if required. But does the requirement for a hedge fund manager to put their client's interests before their own help or hinder the search for alpha? It depends on who you ask.


Performance-based compensation: Does size really matter?

Apr 11th, 2011 | Filed under: Investment Management Fees, Today's Post

A new academic paper suggests managers open and close their funds to new investments to keep performance up - and to keep fees flowing in. We wonder whether hedge fund champion John Paulson would agree.


A funny thing happened on the way to the Directive…

Apr 10th, 2011 | Filed under: Hedge Fund Regulation, Today's Post

A funny thing happened on the way to blaming hedge funds for the global financial crisis, formulating a new set of rules to monitor them, politically compromising and scaling back on those rules and then slamming them through.


Universe returning back to normal as alternative investing “relationships largely restored in 2010″: NACUBO

Apr 7th, 2011 | Filed under: Institutional Investing, Today's Post

Despite talk of a "new normal", a closely-followed annual review of US endowment investing reveals that we're finally moving back to the "old" normal.


Matchmaker, matchmaker make me a match – unless it’s a public pension…

Apr 3rd, 2011 | Filed under: Institutional Investing, Today's Post

Hedge fund matchmakers are facing new rules when it comes to matching their clients with public pension funds. The question is whether it's a growing trend or will the matchmakers will soon start looking for different matches.


Deutsche Bank: “The Entrepreneurial Spirit” returns as investors look to invest in newborn hedge funds on Day 1

Mar 30th, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post

Deutsche Bank's annual alternative investment survey suggests the so-called "risk appetite" is back among hedge fund investors. Let's hope recent calamities around the globe haven't made investors lose their appetites altogether.


Changes in 2010 have “increased the attractiveness of hedge funds versus traditional long-only investments”: Moody’s

Mar 29th, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post

A recent report by Moody's indicates the hedge funds are doing better collectively, attracting more institutional assets and looking at a more positive outlook overall. It's all great, except perhaps for the source of the information...


“I didn’t do it” and “she hit me first” don’t cut it for pensions: report

Mar 28th, 2011 | Filed under: Institutional Investing, Today's Post

Blaming swooning financial markets and the recession for funding shortfalls has become a national pastime among U.S. pension funds. A new report suggests that they need to stop pointing fingers and start taking responsibility for their actions.


Is gold the silver bullet for pension deficits?

Mar 21st, 2011 | Filed under: Commodities, Today's Post

There are some pensions who're sure, all that glitters is gold. And they're trying to make hay in twenty-eleven...


Our most popular academic papers over the past six months

Mar 20th, 2011 | Filed under: Today's Post

Here's a list of the top 20 AllAboutAlpha.com posts over the past 6 months that summarized academic and practitioner research papers. As you'll quickly see, it's like drinking from an intellectual fire hose...


Study finds that factor timing isn’t actually a huge source of hedge fund alpha

Mar 16th, 2011 | Filed under: CAPM / Alpha Theory, Today's Post

In the never-ending search for the source of hedge fund alpha, some have looked to factor timing. But a new study suggests that this, like many other possible explanations, falls short of explaining the hedge fund secret sauce.


UK Report: Early retirement dreams washing away for millions

Mar 14th, 2011 | Filed under: Hedge Fund Industry Trends, Liability Driven Investing, Today's Post

Freedom 66 for pensioners could easily mean Freedom 45 or even Freedom 35 for hedge fund managers, thanks to their recent contributions towards helping to partially offset liability issues, according to a report by TheCityUK.


Is the gargantuan currency market actually getting overcrowded?

Mar 13th, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post

It's hard to believe, but even a four trillion dollar a day market can get a little too cozy every once in a while.


Bonfire of the Valuations: Trading distressed private equity

Mar 10th, 2011 | Filed under: Private Equity, Today's Post

The mid-2000s were quite the party for the private equity crowd. But the morning after, they woke up to too much debt on too few revenues, highballs combined with high-balled growth. So who gets to clean up the mess?


Hedge funds and systemic risk: Whether avoiding it or preventing it, it’s all about the footprint

Mar 9th, 2011 | Filed under: Hedge Fund Operations and Risk Management, Today's Post

Two and a half years have past since the global credit meltdown and there's still concern about the suspected systemic risk of hedge funds. The investigation's going in the right direction, but the real clues are in the footprints, according to the U.K. Financial Services Authority's latest report.


Report: Hedge funds should stick to the Green Zone to avoid land mines, enemy fire

Mar 8th, 2011 | Filed under: Hedge Fund Industry Trends, Hedge Fund Operations and Risk Management, Performance, Analytics & Metrics, Today's Post

For some investors, the hedge fund world is assumed to be riddled with potential land mines and threats of heavy gunfire. Which is why finding managers who stick to the "Green Zone" is good practice, according to a new white paper.


Think you know all about infrastructure investments? Think again.

Mar 3rd, 2011 | Filed under: Institutional Investing, Today's Post

Infrastructure investments remain a hot trend among institutional investors, though a new report suggests they are a lot more complicated - and risky - than as commonly perceived.


Public and Private Real Estate: Pieces of the Same Puzzle

Mar 1st, 2011 | Filed under: Real Estate, Today's Post

Is it location, location, location? Or valuation, valuation, valuation? Or is it timing, timing, timing? Perhaps all three describe both public and private real estate investing. But figuring out valuation is the tricky part.


Send me an angel, VC or a private equity fund…or all of the above.

Feb 27th, 2011 | Filed under: Private Equity, Today's Post

Angel investing is an acquired taste that isn't generally described as an "alternative investment." But as a recent survey of both angels and VC funds illustrates, angel investing is really no different than an institutional investor making "direct" private equity investments.


And institutions said cut fees, be more risk averse and be transparent. And hedge funds listened…

Feb 23rd, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post

And the institutions demanded higher transparency, lower fees and greater risk management. And the hedge funds listened - at least according to Preqin's latest survey of hedge fund industry trends.


Three split-strikes and you’re out

Feb 21st, 2011 | Filed under: Media Coverage of Hedge Funds, Today's Post

"Bernie" is back in the headlines, squawking from the jailhouse about how the banks and others should have seen his scheme for what it was - and actually may have. The broader question is whether suspicions about Madoff's bogus strategy would have made a difference.


Collectibles as alternative investments (think Ferris Bueller’s Day Off)

Feb 15th, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post

Investing in different kinds of collectibles as an alternative way to generate alpha has been tried time and again. Few, however, have made it the intricate topic of a detailed dissertation, and fewer still have dedicated research to showing the positive returns collectibles can generate in a broader investment portfolio.


The house that REITs built… casting a shadow on hedge funds?

Feb 14th, 2011 | Filed under: Institutional Investing, Real Estate, Today's Post

Real estate in various forms continues to gain favor among institutional investors. For hedge funds, the problem is the shadow being cast.


For pensions, “absolute return” strategies and other non-core investments are back in style

Feb 9th, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post

Trends come and go. Here's one that came, went and is now on its way back according to a survey by consultancy bfinance.


A drawdown disguised as a pick-me-up?

Feb 6th, 2011 | Filed under: Performance, Analytics & Metrics, Today's Post

A recent academic paper takes issue with the common view of what drawdowns mean for hedge fund performance.


Elephantine sovereign wealth funds trying to fly “below the radar”

Jan 31st, 2011 | Filed under: Private Equity, Today's Post

Sovereign Wealth Funds are some of the biggest behemoths around. So why would they ever think they could move around undetected?


Hedge Road is apparently a one-way street this year

Jan 30th, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post

A recent survey of hedge fund managers and investors indicates a surge of optimism for 2011. The question is whether they need to look both ways before crossing the seemingly one-way street to a positive year.


Three-in-a-row for alternative investments?

Jan 26th, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post

It's that time of year when soothsayers say their sooths about the upcoming year. So what are they saying about alternative investments in 2011?


Hedge funds coming of age, according to new institutional investor survey

Jan 25th, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post

Hedge funds are apparently just as entitled to rights of passage as anyone else, according to a recent survey of institutional investors, who collectively are poised to give them a second chance.


Study finds private equity “four-peats” can be more difficult than previously thought

Jan 19th, 2011 | Filed under: CAPM / Alpha Theory, Today's Post

Success breeds success – and expectations of continued success. Except in private equity, where success bodes reversion to the mean, a recent study on performance persistence argues.


Facebook 50 billion valuation, Volcker, shine spotlight on secondary private equity markets

Jan 18th, 2011 | Filed under: Private Equity, Today's Post

Without liquid markets, private equity values are nearly always marked to model. But that may be changing...


HFs R AWSUM!!!

Jan 16th, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post

Hedge funds are getting branded as more conservative than they used to be, thanks to the '08 meltdown, but at least one is willing "2 t8k a gambl" on a new kind of strategy.


Report warns about taking credit spreads at face value

Jan 12th, 2011 | Filed under: Performance, Analytics & Metrics, Today's Post

Gone are the days when figuring the crowd affected the pricing and spreads along various parts of the credit market structure. According to a recent report by Standard & Poor's, hedge fund traders and other market participants make measuring credit risk a lot more difficult than it used to be.


European Central Bank’s “Financial Stability Review” lean on hedge fund concerns (for now)

Jan 9th, 2011 | Filed under: Hedge Fund Industry Trends, Today's Post

The European Central Bank's latest financial stability review barely mentions hedge funds at all. Is no news good news?


Ok people: stretch those muscles, and let’s invest in a way that has a positive impact!

Jan 6th, 2011 | Filed under: Institutional Investing, Today's Post

Not to be confused with crashing and burning or with high-intensity workouts, impact investing promises to be the next step forward in earning a return and being socially and politically responsible. What remains to be seen is how many institutions will adapt to it.


AIFMD to hedge fund managers: Put that in your pipe and smoke it

Jan 4th, 2011 | Filed under: Hedge Fund Regulation, Today's Post

The Alternative Investment Fund Management Directive has cast hedge fund managers as pariahs to be closely monitored, but research and history suggest the industry will adapt and survive.


The 10 Most Read AllAboutAlpha Posts of 2010

Dec 30th, 2010 | Filed under: Today's Post

2010, we hardly knew ya! Check out the 10 most-read AllAboutAlpha.com posts from the year of the tiger.


The 5 Most “Social Media-popular” AllAboutAlpha.com Posts of 2010

Dec 29th, 2010 | Filed under: Today's Post

Check out what the social media zeitgeist tweeted about in 2010.


The Most Read Guest Posts of Autumn 2010

Dec 28th, 2010 | Filed under: Today's Post

Looking for a way to remember the time before the snow? Check out these choice posts from the fall.


Good news Cinderella: Emerging hedge funds once again the belles of the ball

Dec 27th, 2010 | Filed under: Hedge Fund Industry Trends, Today's Post

Hedge funds have reclaimed their status as belles of the ball in investors' eyes, according to recent figures from Hedge Fund Research. The question is how long they'll continue to remain in favor.


Investors looking to sojourn again are jumping back onto the seed capital ship

Dec 20th, 2010 | Filed under: Hedge Fund Industry Trends, Today's Post

Today, investors once again consider allocating seed capital to emerging managers in the hopes they'll discover the "next big thing." The terms and conditions that come with writing the check, however, have changed.


At last! Private equity distributions finally looking up.

Dec 19th, 2010 | Filed under: Private Equity, Today's Post

Private equity investors have been a patient lot, and now that patience may finally begin to pay off.


It’s getting easier being green, but can it produce a return?

Dec 16th, 2010 | Filed under: Hedge Fund Industry Trends, Institutional Investing, Today's Post

For institutions, it's easier than it used to be to put money to work in "green" investments. The question is whether they can still earn a decent return doing it.


What do we want? Transparency! When do we want it? Now!

Dec 13th, 2010 | Filed under: Hedge Fund Industry Trends, Today's Post

2011 is shaping up to be a good year for asset managers, hedge funds in particular, so long as they tow the party line and offer what investors now demand: transparency, and loads of it.


Ok, Mr. Hedge Fund Manager, please put on the robe

Dec 9th, 2010 | Filed under: Hedge Fund Industry Trends, Hedge Fund Operations and Risk Management, Today's Post

To thrive in a newly open and transparent world, hedge fund managers need to lose their inhibitions in front of investors, who are demanding more transparency and accountability than ever, according to a recent report.


Death, Where is Thy Payout?

Dec 8th, 2010 | Filed under: Institutional Investing, Today's Post

Death: Uncorrelated with the equity beta - as long as market volatility doesn't give us all heart attacks.