Tuesday, 21 October 2014
Last updated 9 hours ago
Aug 3 2010 | 3:50am ET
In another blow to the embattled fund of hedge fund industry, one of Europe’s largest pension funds has pulled more than US$500 million from funds of funds, its entire investment in the asset class.
The Rabobank Penioenfonds, which manages more than US$15 billion, has ended its relationship with its five fund of funds managers, Financial News reports. The pension disclosed its decision in its annual report, which was published last week.
The Rabobank pension said it “had doubts about the added value of this asset class, and its use in diversification, and the lack of transparency of the hedge fund industry in general.”
The funds of funds managing the pension fund’s millions lost 12.5% in 2008, after which the scheme decided to stop adding to its investments. The return was “better than the return of a large number of other asset classes, but unfortunately there is no absolute positive return,” the Rabobank pension wrote in the report. “This is disappointing, since hedge funds generally were considered able to give a positive return regardless of market conditions.”
The pension has redeployed its fund of funds investments into equities.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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