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.
This report examines the performance of Asian hedge funds in 2008, discusses issues to keep in mind when considering an investment in Asian hedge funds, and explores the role of such funds in a portfolio.
This primer provides an overview of the secondary market and discusses the role of secondaries in a diversified investment portfolio.
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…
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…
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…
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,…