Wednesday, 17 September 2014
Last updated 43 min ago
Dec 4 2012 | 11:46am ET
Future generations may have hedge funds to thank for the survival of the Nobel Prizes.
The Nobel Foundation plans to increase its investments in hedge funds in an effort to increase its returns. Investment losses of 18% over the last five years forced the foundation to cut the cash award attached to the prize by 20%, to 8 million Swedish kronor (US$1.2 million).
"When we look at the analysis we see that we can get more return with less risks by doing that," executive director Lars Heikensten told Bloomberg News. "If we can choose hedge funds that we trust, then we can get better returns for given risks."
Heikensten said the Nobel Foundation required a 3.5% to 4% return on its US$450 million endowment to maintain its capital base. It's instead earned just 1.5% to 2% over the past decade, and "had in fact been spending more every year on average than" it had earned.
The Nobel Foundation currently has 24% of its money invested in hedge funds and private equity funds, up from 6% five years ago.
Among the new managers entrusted with Alfred Nobel's bequest are Nektar Asset Management's Kent Janer and Rational Asset Management's Sven Nyman, both of Sweden.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
There are two things currency analysts agree on: Currencies have never gone through such a period of low volatility and the dollar must lead the sector out of the current malaise.