Secondaries: An Introduction
This primer provides an overview of the secondary market and discusses the role of secondaries in a diversified investment portfolio.
Hedge Funds
Investing in Latin American Hedge Funds
Provides investors with a background of hedge funds in the region as well as their current performance. A key question for investors considering an allocation to Latin America is whether hedge fund strategies constitute a better option than long only and/or offer a differentiated return stream. At this time, we consider Latin American hedge funds…
Is the “Hedge Fund Business Model” Broken?
While hedge fund managers did a better job of preserving capital than traditional asset managers in 2008, it was a disappointing year for hedge funds. Despite this, we strongly believe that the current shakeout in the industry is a net positive for long-term hedge fund investors, although significant near-term challenges for managers remain. In the…
Hedge Funds: A Framework for Making Strategy Allocation Decisions
This expansive report discusses our approach to strategy allocation by providing the basic framework for allocation decisions, the key return drivers and investment backdrops in the core marketable alternative strategies, and recommendations for program construction. It also contains a performance review of the five core marketable alternative strategies: long/short equities, distressed securities, convertible arbitrage, merger…
Trends in the Hedge Fund Industry
The rapid growth and maturation of the hedge fund industry has sparked a debate about the role of marketable alternative investments in institutional portfolios. This report is examines whether the growth and maturation of the industry has made marketable alternative investments less compelling, explores other trends that are transforming the competitive landscape in the industry,…
Portable Alpha: A Closer Inspection
This paper focuses on how portable alpha can be applied by investing portfolio assets with a manager that can generate alpha and using index derivatives to acquire the desired beta exposures. Included is a discussion on implementation strategies, identifying and measuring alpha, diversification, leverage, and liquidity. Exhibits show a hypothetical example for using portable alpha,…
Hedge Funds – Bangs and Whimpers
This short paper examines the bubble environment caused by billions of dollars flowing into hedge funds in 2001 and suggests possible sources of value added. Particular emphasis is given to the convertible arbitrage, merger arbitrage, distressed, and long/short equity subcategories.