Category: Hedge Funds
A hedge fund is an investment fund that pools capital from institutional investors or accredited investors and invests in a variety of assets, often with risk-management techniques and complex portfolio construction.
They are administered by a professional investment management firm, and usually structured as a limited liability company, limited partnership, or other similar vehicle.
Hedge funds are different from mutual funds, as their use of leverage is not capped by requlators. They are also distinct from private equity funds, as most hedge funds invest in relatively liquid assets.
| |Whether, large-caps, small-caps, growth or value as measured by the major stock index benchmarks, US stocks markets are having a good year, but you would not know it if you saw August or year-to-date hedge fund style performance. Many hedge fund managers seem to have missed the big equity moves and not generated alpha. We find this especially odd since market dispersion and correlation numbers within indices show that there should have been a significant number of unique opportunities as measured by S&P Dow Jones Indices … Read more CTAs Show Strong Monthly Returns, But Hedge Funds In General Have Not Found Their Edge This Year
| |Hedge fund returns for July were generally negative with the only exceptions being equity hedge and fundamental value strategy indices. The class of uncorrelated hedge funds styles, event driven and special situations, under performed. Defensive styles like systematic CTA and global macro also posted negative returns. … Read more Hedge Fund Performance Mixed for July
| |The film noir, “DOA”, had a great premise – a man staggers into a police station and wants to report a murder – his own. He was poisoned and had a limited time to find his killer and why. The hedge fund industry 2/20 fee schedule is dead. Some managers may not know it yet, some are in denial, but it happened and now it is just a matter of sifting through the suspects to find the killer … Read more 2/20 Fees – DOA, Dead on Arrival – The Changing Market Structure for Hedge Funds
| |Hedge fund styles as measured by the HFR indices, on average showed negative performance for June. EM strategies were the hardest hit sector. The only bright spots were merger arbitrage, defensive strategies like global macro and relative value. The general decline in equity markets globally and more mixed performance in the US held back returns … Read more Hedge Fund Performance Poor for 2018 – Limited Alpha Generation
| |The Greek poet Archilochus wrote, “The fox knows many things, but the hedgehog knows one big thing.” … Read more The “Hedgehog and the Fox” Revisited – Have Managers with Big Ideas, But Diversify