Monday, 20 October 2014
Last updated 2 days ago
Nov 8 2011 | 10:21am ET
Are hedge funds not worthy of the name? One study suggests they might not be.
Hedge funds' correlation with equities hit an all-time high in September, according to Bank of America Merrill Lynch. The increased correlation with the Standard & Poor's 500 Index began in March 2009. In September, the 12-month correlation was as high as ever, the Financial Times reports.
That correlation would actually be a pretty good thing this year, with the Standard & Poor's 500 Index at break-even through last month. But where hedge funds have been uncorrelated, it has hurt them: Many hedge funds were long in August, when stocks began their precipitous decline, but had cut their risk before last month's rally. Most indices show that hedge funds participated in only a fraction of October's stock market gains.
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 ...