Friday, 24 October 2014
Last updated 54 min ago
Feb 25 2013 | 11:52am ET
A California public pension fund could do just as well with index funds as hedge funds, its consultant advises.
Salient Partners, whose Lee Partridge serves as chief investment officer for the San Diego County Employees Retirement Association, recommended that the pension ditch some of its hedge funds for passive index funds.
"A lot of hedge funds in general are just a compensation scheme," Salient quantitative expert Roberto Croce told SDCERA during the education session.
"It's really the fees," he added. "Fees, fees, fees. Fees have a very high Sharpe ratio: They are guaranteed. They are not going to miss any charges. Really, what we want to demonstrate here is that a very simple, plain vanilla implementation has a relatively large margin."
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…
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 ...