August 20th, 2014
Just as consumers choose Coke over the generic cola, hedge fund investors gravitate toward brand name funds. Donald A. Steinbrugge, managing partner of Agecroft Partners, says that since 2008 the majority of new money has flowed to those hedge funds with the “strongest brands.” This “small minority” — typically funds with at least $5 billion under management — attracted the bulk of asset inflows until almost the end of 2010. While the bulk of the assets still flow to the largest managers, more is being invested in the next tier down; funds with $1-$5 billion AUM. Here, too, writes Steinbrugge, the focus is still on “the small percentage of those small and mid-sized managers that have developed the strongest brands.” He goes on to list “three critical steps involved in creating a strong brand and raising assets in today’s competitive environment.” Finalternatives
August 7th, 2014
Hedge funds are turning in results that are closer to those of index funds, but they’re still charging fees as they did back in the halcyon pre-recession days. Now, a software engineer and former analyst with Bridgewater Associates have launched Convoy Investments charging a 1.25% management fee and no performance fee. That makes it a rarity among hedge funds, nearly all of which charge a double-digit performance fee. And the founders say they’re managing foundation and some pension funds for free. Bloomberg News
July 7th, 2014
You might think that by their very nature hedge funds are among Wall Street’s bigger bettors and you would be right. But even among them, Blackstone Group’s rumored plans to launch a fund that will make big, if few, concentrated bets is surprising. Many funds have moved away in recent years from such risky, though potentially highly profitable, strategies. According to published reports, Blackstone is assembling its first teams of traders who will start this fall with backing of up to about $500 million. The teams will place between four and six big bets globally where they anticipate profits from either a rising or a falling market. The Wall Street Journal
June 17th, 2014
Alternative asset managers are all abuzz over the still nascent hedged mutual funds. Also called alternative mutual funds or ’40 Act funds, these products offer the liquidity of a mutual fund with some of the features of a traditional hedge fund, including short selling, leverage, and certain types of derivatives.
Because these hybrid-like funds adhere to the Investment Company Act of 1940, they can be marketed to an entirely different group of investors — those who otherwise invest in traditional mutual funds. These investors, often referred to as “retail investors,” don’t have to meet the stringent sophistication and net worth requirements required of classic hedge fund investors. Read the rest of this entry »
May 21st, 2014
Barron’s released its “Top 100 Hedge Fund” list this week, declaring it reflects “a number of marketplace shifts last year.” Chief among them, says the business publication, is a slowing of returns for asset-backeds and mortgage-backeds.
Overall the 100 funds on the list, many of them equity-related, returned an average of 17% over three years. The top performing fund, Glenview Offshore Opportunity, was up 32.6% per year over three years. Read the rest of this entry »
May 12th, 2014
Allergan can make others more attractive, but it’s having a hard time doing the same for itself.
The Irvine, Calif. maker of anti-wrinkle drug Botox has so far had no luck convincing other pharmaceutical firms to make it an offer it can’t refuse so it can convince shareholders to refuse a $45.7 billion acquisition bid from Canadian drug firm Valeant Pharmaceuticals International, Inc.
Despite being rebuffed by Sanofi and John & Johnson, and failing to stir up interest despite reportedly also reaching out to GlaxoSmithKline Plc and Novartis AG, the Allergan board today rejected Valleant’s offer. Read the rest of this entry »
April 10th, 2014
Young, small hedge funds outperformed their elders over the last 11 years, says data provider eVestment.
Indexing funds into three groups — up to two years, 2-5 years, and older funds — eVestment found the younger funds outperformed the other two groups in each study year. Read the rest of this entry »
March 15th, 2014
There’s nothing new about niche recruiting. Most search firms and independent recruiters specialize in certain industries and fields. A cluster of firms n the West and Plains states specialize in placing petroleum engineers and oil field workers. Silicon Valley has multiple firms dedicated to the tech industry.
Green Key Resources, too, has specialist recruiters in several areas, including pharmaceutical, human resources, healthcare, IT, accounting and finance, financial services, legal and alternative asset management, and, of course, temp placements. Read the rest of this entry »
February 25th, 2014
In collaboration with Latham & Watkins, the Managed Funds Association, trade group for the hedge fund and alternative assets industry, is out with a new hedge fund glossary. The MFA is offering the law firm’s Book of Jargon – Hedge Funds on its website. With some 900 terms, the glossary is a complete set of key terms, phrases, and definitions specific to all aspects of the global hedge fund industry. The Book of Jargon – Hedge Funds is also available as a free app that allows users to access the information on Apple’s iPhone and iPad devices.
February 21st, 2014
Hedge funds badly underperformed the broader markets last year — and aren’t expected to do much better this year — but investors are undaunted. They’re expected to add another $171 billion.
With this year’s estimated $193 billion in earning, hedge fund assets should top $3 trillion by year end, says Deutsche Bank, which this week released its 12th annual Alternative Investor Survey.
“The hedge fund industry is predicted to reach a record $3 trillion by 2014 year-end, driven by significant inflows, most notably from institutional investors,” said Barry Bausano, co-head of Global Prime Finance at Deutsche Bank. Read the rest of this entry »