Thursday, 25 December 2014
Last updated 1 day ago
Nov 3 2008 | 9:28am ET
By Christopher Holt -- The truth is out, hedge funds have long equity exposure. Our back-of-the-envelope analysis of the HFRI Index last week showed that all strategies—particularly “Equity Hedge”—had a positive correlation with equity markets.
So what can an investor seeking truly uncorrelated returns do about this? After all, it’s quite possible that a hedge fund could produce alpha, but deliver it to investors with a side helping of over-priced beta. Short bias managers, for example, are often said to produce a positive alpha even though they lose their shorts year after year. It is cases like this that make the term “absolute returns” a misnomer (see related post).
A new paper by the Edhec Risk and Asset Management Research Centre illustrates the ways that a fund of hedge funds can mitigate itself from these not-so-hidden factor exposures. Continue Reading on AllAboutAlpha.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.