From the category archives:


Both Nature and Hedge Funds Abhor a Vacuum

July 8, 2015

The passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act in July, 2010 was largely a knee-jerk reaction to the financial crisis. This sweeping piece of legislation has had, like many legislative initiatives, numerous unintended consequences. For example, many believe that Dodd-Frank is responsible for the precipitous decline of the small community bank, the life [...]

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Hedge Funds and The OECD’s Global Tax Initiative

June 25, 2015

As early as the 1920′s, the League of Nations recognized the potential adverse consequences of disparate domestic tax structures on global growth and prosperity, the most significant of which is double taxation. The dizzying pace of globalization has forced the Organization for Economic Cooperation and Development (OECD) to finally come to grips with this issue. [...]

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Hedge Funds Begin to Embrace Social Media

June 10, 2015

Hedge funds have been understandably resistant to social media, suffering from a form of post traumatic stress, as a direct result of the eight decade gag forced on them by the general solicitation ban. Hedge funds have a reputation for many things but, social media interaction is certainly not one of them. That is slowly [...]

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Hedge Funds and the Strengthening Dollar

May 27, 2015

The dollar has experienced its sharpest rise in five decades. That, coupled with robust European and ongoing Japanese quantitative easing, has made investors increasingly wary. Understanding how the dollar achieved these remarkable gains is important in understanding the potential consequences. A Perfect Storm In response to the 2008 financial crisis, the Federal Reserve flooded banks [...]

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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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