Hedge Funds

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.