Institutional investors considering an allocation to a hedge fund are typically reasonably equipped to evaluate its suitability for their portfolios. However, traditional yardsticks are inadequate for evaluating multi-manager (MM) hedge funds. Due to the uniqueness of their organizational structure and fund terms, MM funds often exhibit unusual yet ultimately explainable behavior. The intention of this…
Grain demand from the emerging world is likely to persist, although given rich land prices in some regions, investors should proceed carefully in this developing asset class.
Executive Summary Manager selection is critical when investing in hedge funds. Every analysis of a potential hedge fund allocation boils down to a granular assessment of a fund’s value proposition as reflected in its investment philosophy, terms, and business operations. Equally important is the need to identify the specific role each fund serves as part…
The Investment Manager Fees report is an examination of average fees for long-only managers in our database, as well as fees and terms for select hedge fund managers for which we have data.
As modern portfolios evolve, investors continue to seek new ways to diversify exposures and mitigate volatility. Currency exposure, once thought of exclusively as a risk to be hedged away, is today being embraced by some in mandates designed to generate returns. The form of such a mandate may vary widely, from a discrete, active strategy,…
This paper discusses what global macro is and how its practitioners operate, reviews its history and performance, and discusses its major attractions and key risks. We believe a thoughtfully constructed allocation to select global macro managers offers various potential benefits to investors, particularly in an increasingly macro-driven environment.
A fully collateralized option-selling program has historically provided strong returns with low volatility and high liquidity. Looking ahead, we expect this to be an attractive portfolio diversifier that seeks to capture the seemingly persistent gap between implied and realized volatility.
This paper highlights key provisions of the major U.S. financial act signed into law in July 2010, focusing on issues related to alternative investments and managers. With more than 60 mandated federal studies due over the next several years and at least 200 new regulations that have yet to be written, the final regulatory landscape…
This primer revisits the widely misunderstood practice of short selling, considers the associated risks, and addresses the role of dedicated short sellers in a broad investment portfolio.
This paper provides an introduction to hedge fund strategies and operations. Topics covered include common investment strategies, capacity, investor base, legal and fee structures, liquidity provisions, staffing, external service providers, and fund documents.