Sunday, 21 September 2014
Last updated 2 days ago
Oct 2 2008 | 7:06am ET
By Christopher Holt -- Cynics often describe hedge funds not as a unique asset class or investment strategy, but as a unique “fee structure.“ To some extent, they are correct.
After all, mutual funds now use hedge fund strategies (long/short, 130/30 etc.) and yet we still call them mutual funds. Conversely, many hedge funds pursue high-beta long bias (a.k.a. mutual fund) strategies, yet we still refer to them as hedge funds. And indeed, one of the main regulatory differences between the two types of funds is the ability to charge a performance fee.
Hedge fund fees are generally viewed by the media with a jaundiced eye. Many people have expressed frustration that hedge fund fees don’t seem to budge -- even as hedge funds have been producing lackluster absolute returns.
Take 2008 for example. A recent study by Eurekahedge recently found that 90% of hedge funds are currently below their hurdle rates or high water marks and are therefore at risk of earning no performance fee this year. And that was only as of July 31. Continue Reading Article On AllAboutAlpha
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.