From the category archives:

Basics

Top Hedge Funds Pursue Soros-Like Returns on the Yuan

February 2, 2016

In the fall of 1992, George Soros rose to prominence by winning his gamble against the British Pound, earning not only a place in history but, $1.5 billion in profits. Today, many prominent names in the hedge fund industry are seeking similar results at the expense of the Chinese Yuan Renminbi (RMB). The fluctuation in [...]

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Can a Small Hedge Fund Survive Its Unique Fiscal Challenges?

January 19, 2016

Hedge funds, in the aggregate, turned in an abysmal performance in 2015. Moreover, this appalling performance hangs like an albatross around the necks of funds both small and large, making the prospect of growing assets under management (AUM) that much more challenging in 2016. For hedge funds, AUM is not an end unto itself, as [...]

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Are Hedge Funds Dead or Just Badly Wounded?

January 12, 2016

The year 2015 is one more for the dustbin of history and marks the second straight year of uninspiring hedge fund performance.  If anything separates 2015’s performance from 2014’s, it is that 2015 was not a solo performance. The S&P 500, that vaunted faux yardstick of hedge fund performance, ended 2015 virtually flat and the [...]

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More Hedge Funds Make the Transition to Family Offices

December 22, 2015

Hedge funds, already an exclusive investment option, have been made even more restrictive by the definition of a qualified investor. Now we are seeing a trend in the direction of even greater exclusivity as hedge funds return outside investors’ capital and transform into family offices, which further restricts investors to family members. George Soros and [...]

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Hedge Funds Are Not Imploding

November 23, 2015

The performance of the S&P 500 is on a par with real ten-year Treasury rates yet, many financial reporters prefer to focus on hedge fund performance, going so far as to suggest they are imploding which, by definition, means a sudden and complete failure. While it is true that not every hedge fund develops and [...]

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65 Million Reasons Bill Gross Is Wrong About a Fed Rate Hike

November 10, 2015

Bill Gross has spent the past several months beating the drum for a rate hike. His reasons for taking this position are fairly obvious. Mr. Gross is in the bond market. Many of those favoring the status quo also have ulterior motives, so please understand…this is no condemnation of Mr. Gross’ position on the subject [...]

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Hedge Funds Take a Lickin’ but Keep on Tickin’

October 28, 2015

Warren Buffett’s celebrated bet that the S&P 500 will outperform a portfolio of funds of hedge funds springs to mind in the wake of Berkshire Hathaway’s recent $400 million haircut as a result of Wal-Mart’s share-price decline. Although the Wal-Mart loss was a stinging one, it fell short of the $600 million plus loss Berkshire [...]

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Hedge Funds – Beware Yellen’s “X” Factor

October 12, 2015

It is almost universally accepted that the FOMC has only a brace of tools with which to manage U.S. economic activity, quantitative easing (QE) and establishing the fed funds rate. Janet Yellen and her FOMC have demonstrated over the course of the past several months that a third mechanism exists; for lack of a better [...]

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Will Interval Alternatives Accomplish what Liquid Alternatives Could Not?

September 30, 2015

Hedge funds have endured the slings and arrows of multiple critics, including presidential contenders on both sides of the aisle, yet they remain the investment platform of choice for institutional investors and high net worth individuals. This fact is not lost on the small investor who, unable to meet the definition of a qualified investor, [...]

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Investors, Refugees and Economies Collide at Hedge Fund Junction

September 15, 2015

The human tsunami of refugees created by ISIS’ unprecedented and unchecked rise in the Middle East may prove to be a greater barrier to hedge fund gains than the on-again-off-again FOMC rate hike. Any FOMC rate hike would likely impact hedge funds with equity strategies first and, one could argue, with greater negativity than funds [...]

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