From the category archives:

Strategies

Black Swan Hedge Funds Grow in Popularity

September 19, 2011

Hedge fund strategies designed to protect investors against unpredictable risks, so-called “Black Swans,” are soaring in popularity, especially as Europe’s debt woes intensify. Hedging against unforeseen events was popularized in the 1980s by traders such as Nassim Nicholas Taleb, who wrote a book about it in 2007 entitled “The Black Swan.”  The term refers to [...]

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This Hedge Fund Strategy is Grabbing More Attention

September 5, 2011

It’s one of the least promoted hedge fund strategies. Yet, some 25 percent of hedge fund managers may now be using it.  It helps hedge fund managers diversify and move further afield from correlations to mainstream indices, and reduce overall portfolio risk. So what is this mysterious strategy? It’s called event-driven, and it targets financial events [...]

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High-Frequency Trading a Hazard or Boon to the Market?

August 22, 2011

Is “black box” trading more of a threat to the markets than short selling? That’s the view of former City minister and British investment industry veteran Lord Myners. “High-frequency trading appears so detached from the true function of capital markets, but is potentially fraught with hazard. It definitely deserves more attention than either the Financial [...]

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Hedge Fund Strategies: Managed Futures

July 11, 2011

While many hedge funds outperformed the overall market during the financial crisis of 2008, they still lost money, down 14% as opposed to crashing 30% to 50% like that of major indices. But as an article in MoneyControl pointed out recently, one group of hedge funds managed to do better … much better. Gaining 17% [...]

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Boutiques to Outperform Super-Sized Funds?

July 4, 2011

Executives at the 17th Annual GAIM International Conference 2011 in Monaco, billed as the World’s Largest Alternative Investment & Hedge Fund Conference, see better returns in the future from boutique funds than today’s super-sized funds. Hedge fund strategies such as big global macro and managed futures funds could find it harder to trade positions in today’s constrained [...]

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Hedge Funds Are Marketing Transparency Better

February 14, 2011

Hedge funds may be taking risk management and transparency more seriously than their other financial brethren, in part due to an influx of capital and interest from large institutional investors, reports Reuters. The article quoted a Preqin research survey of 60 hedge funds that said capital sourced from institutional investors had grown from 45 percent [...]

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Starting a Hedge Fund – Determine Your Investment Strategy

November 30, 2010

So you are starting a hedge fund. You’ve just thought up a cool fund name, filed your LLC paperwork, asked your rich uncle for some seed money and had business cards printed up saying you’re the president and chief investment officer of your very own hedge fund. Congratulations. But you’ll probably be back on Merrill’s [...]

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Starting a Hedge Fund Using Forex Trading Strategies

November 16, 2010

Over the last two years, investors have pulled speculative capital out of risky assets at an unprecedented rate.  In fact, analysts estimate there is currently billions of dollars of investment capital on the sidelines as investors are still unsure of the long-term economic outlook for the United States economy.  Most of this speculative capital that [...]

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Changes in Third Party Marketing – Chip Perkins Interview

September 23, 2010

Recently we had the opportunity to speak with Chip Perkins, Founder of Perkins Fund Marketing, a third party marketing services firm. He provided some perspective on how third party marketers are adding value in an industry that has changed significantly in the past couple years. HFMA: Third party marketers have been described as independent sales [...]

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Institutional Investors Set to Pour More Capital into Hedge Funds

August 31, 2010

The hedge fund industry has been through a time of great change since the market crisis and the institutional sector has become increasingly important to the industry since this time. In August 2010, Preqin released the findings of its latest institutional investor survey. Preqin probed 50 institutional investors on their hedge fund plans for the [...]

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