Wednesday, 1 April 2015
Last updated 3 hours ago
Nov 21 2011 | 12:03pm ET
Morgan Stanley strategist Adam Parker says hedge funds are not producing the “alpha”—returns above and beyond what the market is generating—they promise.
Parker’s research, as reported in the Wall Street Journal, shows the correlation between hedge fund returns and the S&P 500 has risen to nearly 100% in recent years. Worse still, where there is a gap between hedge fund returns and pure market returns, it might not be in investors’ favor—the annualized excess hedge-fund return for the past five years has turned negative.
Parker says the current, highly correlated market makes it difficult to pick stocks well, which inhibits the alpha-generating abilities of many hedge funds. Moreover, some funds have produced outsized returns, the WSJ says the averages are “no doubt being dragged down by the truly horrible hedge funds out there.”
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…