Monday, 20 October 2014
Last updated 3 days ago
Aug 3 2011 | 10:50am ET
More and more pensions are investing more and more money in hedge funds, but they could be doing a much, much better job, according to a new study.
While the average U.S. pension fund's hedge fund investments easily bested the broader markets, they badly trail overall hedge fund returns, according to a Financial Times analysis of a report by three finance professors. U.S. pensions' hedge fund investments managed a 1.9% annualized return from 2000 through 2008, a period in which the average hedge fund rose about 5% per year.
Canadian pensions did even worse, with their hedge funds returning only 0.6% per year. That figure is especially galling for Canada, whose stock market managed a 2.9% annualized return over the period.
The poor returns come as an increasing number of pensions crowd the hedge fund space. In the year that the study began, 2000, only 2% of North American pensions invested in hedge funds. By 2008, more than 20% did so.
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...