From the category archives:


Alternative Mutual Funds Are No Threat to Hedge Funds

May 12, 2015

The year 2014 witnessed the average alternative mutual fund outperform the average single manager hedge fund by 58 basis points. Single manager hedge funds returned an average of 3.78 percent, while alternative mutual fund returned an average 4.36 percent during the same period. At the same time, the S&P 500 sported 11 percent gains. What’s [...]

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Hedge Funds: Another 2016 Political Football

April 27, 2015

And so it begins. Recent comments made by Hillary Clinton suggest she is laying groundwork regarding her campaign pledge to be the people’s champion when she said in Iowa, ”there’s something wrong when hedge fund managers pay less in taxes than nurses or the truckers I saw on I-80” as the Scooby Van made its way [...]

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Hedge Fund Activism Creates Unintended Consequences

April 15, 2015

Activist activity, which has been defined as an equity investor asserting control and influence for the benefit of equity investors, is not a new phenomenon but its pace has accelerated in recent years. Activist activity has increased 26 percent from last year’s first quarter. Unintended Consequences While this activity has been largely regarded as positive [...]

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Small vs. Large Hedge Funds: Does Size Matter?

April 1, 2015

If there is one point that we can agree on, no study of hedge fund size relative to hedge fund performance has been conducted that is capable of defending its conclusions effectively against all-comers. The nature of the industry, in terms of its diverse strategies, varying degrees of management competency and numberless external market forces, [...]

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Liquid Alternatives – A Threat to Hedge Fund AUM

March 17, 2015

Institutional investors are beginning to take a hard look at ‘40 Act structures as alternatives to hedge fund investment.  This investment vehicle is in its formative years with the most seasoned being barely five years old, yet McKinsey & Company projects inflows to approach $900 billion by year-end 2015. A Barclays Prime Services study, Developments [...]

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What Is All This “Yellen” About?

March 4, 2015

Janet L. Yellen appeared February 24th before the Senate Committee on Banking, Housing, and Urban Affairs and again February 25th, 2015 before the House Committee on Financial Services, providing semi-annual testimony on monetary policy and the economy in her role as the U.S. Federal Reserve Chair. What We Learned About Employment The unemployment rate (U3) [...]

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Hedge Fund Prospects Bright for Record Growth in 2015

February 18, 2015

A persistent bull market, in part, has resulted in hedge fund performance falling short of the broader market. Colloquial wisdom suggests that investors have the potential to earn superior returns and enjoy lower fees by investing in mutual funds. In short, many outside observers believe investors are not getting what they paid for—it’s like going [...]

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Citigroup Report Reveals Serious Challenges for Small Hedge Funds

February 4, 2015

With 2014 in the rear view mirror, the numbers defining hedge fund performance are beginning to coalesce. Enter Citigroup’s Third Annual Hedge Fund Industry Operating Metrics Survey. Profits Plummet Citing poor performance, Citigroup’s report suggests that hedge fund profits dipped to just under $22 billion in 2014, compared to $31.2 billion in 2013. This represents [...]

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Flawed Logic or Brilliant Marketing?

January 20, 2015

Hedge fund managers are nothing if not innovative. Take Davide Erro, chief investment officer of the Hong Kong-based Turiya Advisors Asia, who delighted his investors by returning 17.5% of their capital investment. Turiya further pleased investors by returning north of 20% through the first 11 months of 2014. Erro reasoned that Turiya was growing at [...]

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2014: A Glance in the Rear View Mirror

January 6, 2015

Record breaking index growth (e.g. the S&P 500’s positive percentage change stood at 11.39%) in the year ending 2014,  highlighted a comparatively lackluster year for hedge fund performance, which, on average, showed modest gains averaging around 3.5%. Despite a less than banner year in terms of returns, a Pyramis Global Survey suggested that only one-third [...]

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