By Christopher Faille A presentation by Samuel Kunz, chief investment officer of the Policeman’s Annuity and Benefit Fund, Chicago, to the CFA Institute 2011 Asset and Risk Allocation conference addressed the pros and cons of “risk parity.”  His presentation makes it seem that risk-parity portfolios (RPP) and the Capital Asset Pricing Model (CAPM) are sibling rivals. [...]

Hedge funds are already being laid to blame for the latest market rout, whether true or rhetoric. And the worst is likely yet to come.

By Christopher Faille One of the scariest things about hedge funds is the loss of liquidity that such an investment involves, with lock-up periods, redemption suspensions, wonder about what is in the “side pockets,” and worry about getting caught in the clanging gates.

By Christopher Faille The press still seems to be discovering “fat tails” and “black swans.”  In July, news outlets gave admiring coverage to the International Monetary Fund’s expression of interest in the ideas of Nassim Taleb, the perhaps-overexposed philosopher who made the phrase “black swan” a cliché upon the success of his 2007 book of that [...]

Professor Neil Johnson talks about the DNA of financial markets with AllAboutAlpha's Vikas Shah

Alternatives are increasingly being viewed as a key component of portfolio construction for wealth management firms - good news for hedge funds. But there's competition from private equity.

Hedge fund assets have bounced back from 2008 to make a new high above two trillion and many performance measures have also more than recovered their losses. Yet it seems most of the inflows are being hogged by the Billionaire's Club, despite studies shouting "Small is Beautiful."

Two economists cogently contend that looking at developments in hedge funds' monthly risk profile will be most revealing.

Hedge funds and institutional investors have kissed and made up, according to JPMorgan Prime Brokerage's latest investor sentiment report. Is the relationship really back on track, or are hedge funds just playing the good wife?

This is the first of a new series called "Alpha Hunters." The nimble qualities of alternative investments is part of what makes them essential to every investor's portfolio. They can move quickly to take advantage of market inefficiencies and go where other more traditional investment vehicles cannot. It is in the spirit of seeking the ever-moving alpha that we introduce this series, reaching out to experts in different strategies to see where they are finding alpha. We hope you find this series illuminating and please feel free to send suggestions for Alpha Hunters you'd like to read about. Kristin Fox Managing Editor

A recent comic strip featured a somewhat ambitionless twentysomething relating that she had seen her cat lick its own back and her dog catch its tail, fulfilling their lifelong goals all before she had even formulated ones of her own. Asset managers prefer not to see the market catch its tail – it means deep drawdowns for their portfolios. A recent research paper, however, suggests that it's better to try to catch the tail – and shorten it – than to hope it won't happen.

A CMRA/IAFE study of the AXA Rosenberg case shows that model risk may not be on the radar screens of many quant funds.

A recent report suggests institutional money is going to be pouring into hedge funds over the next 12 months. Great news - except that it contradicts recent stories about mass redemptions.

It's a new paradigm for prime brokers still looking to develop and expand on their hedge fund relationships. The types of offerings - and the infrastructure hedge funds demand - are a whole new ballgame.

Institutions continue to favor alternatives as they remain committed to diversifying away from traditional asset classes. The problem, according to Towers Watson's latest survey, is that they aren't necessarily sold on hedge funds, and they certainly aren't thrilled with the price point.

Direct investing in hedge funds is currently all the rage among pensions and sovereign wealth funds. But cutting out the middle man, or the expert, can come with a price.

CREATE-Research's annual report takes a closer look at innovation, and how a lack of has prompted institutional investors to wise up when it comes to alternative investments. We beg to differ.

Eep! A new paper suggests that the economic crisis is not behind us and that dark days lie ahead. Fortunately, there is some assurance that all will come out well - if only we can manage to survive...

One of the long-term trends that the hedge fund industry, and many others, face is the fact that the new media have unpredictable and sometimes unsettling consequences for many ways of doing business, including ways of finding alpha. The case of Barclays v. Fly on the Wall illustrates some of those consequences.

The European Central Bank’s latest regular financial stability review uses the word “normalisation” a lot. But what does that mean?

Climate change-focused investment opportunities are increasingly popular among institutions and asset managers. The question is whether they will yield results.

All is forgiven between hedge funds and family offices, which are growing in number and once again looking at hedge funds and other alternative investments. The question is whether hedge funds will end up trampling themselves in the race to sign them up.

Preqin's latest report overwhelmingly confirms that transparency is here to stay for hedge fund managers vying for institutional capital.

There's nothing like a good list of acronyms to confuse even the most immersed hedge fund aficionado. A new report by KPMG and RBC Dexia unintentionally takes the industry's affinity for acronyms up a notch.

A new academic paper points a finger at hedge funds for accentuated volatility in energy markets. Unfortunately, it's the finger one might deem impolite.

Optimism not seen since pre-2008/09 markets leads managers to invest in their firms as well as the markets.

Managed futures and hedge funds aren't exactly best friends, but a new report suggests investors should have the two together as a way to generate alpha the next time a black swan shows up.

If you drive a hedge fund, best to have some kind of insurance, though what it will cost you will depend more on the kind of car you drive than on your driving record.

Credit Suisse Asset Management's latest alternative investment report shows the road to hedge funds is paved with good intentions - so long as there aren't any bigger explosions.

Amazing things can happen when you have a robust seeding program.

Optimism about the hedge fund industry's prospects reigns, according to a recent survey. But is it a contrarian sign?

While still struggling, Japan-focused hedge funds were finally beginning to show some promise, according to a recent report. The unfortunate events of March have created new challenges for the industry.

Funds of hedge funds aren't exactly being embraced with open arms again just yet, but they are no longer the pariahs they were, according to a recent recent report.

All is calm and good on the surface of the hedge fund industry, with AUM collectively continuing to rise. Underneath, however, are some gyrations that are changing the composition of alternatives fairly dramatically.

Hedge funds' ability to persevere and thrive following the past few years is a sign they'll be around for the long haul - a sentiment confirmed by Rothstein Kass's latest annual hedge fund survey.

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.

Predictable patterns are easy game for hedge funds.