‘Random Walk’ Author Launches China-Focused Hedge Fund

Feb 2 2010 | 10:19am ET

Burton Malkiel is famous for declaring active portfolio management little better than gambling. But that’s apparently not stopping him from trying his own hand at running a hedge fund.

Malkiel, the Princeton University economist best known for his classic A Random Walk Down Wall Street, is managing a China-focused hedge fund for AlphaShares Investments, the California firm where he serves as chief investment officer. The long-only vehicle recently debuted with $30 million, HedgeFund.net reports.

The move is quite the turnaround for Malkiel, who, in addition to poo-pooing active management, has also been a fierce critic of the hedge fund industry. Five years ago, he warned that the hedge fund industry had become too large and too risky, with insufficient prospects for outperformance.

In 2008, Malkiel published a book about investing in China titled From Wall Street to the Great Wall: How Investors Can Profit from China's Booming Economy. He now aims to do just that with his new China-focused fund.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of