Posts Tagged ‘hedge funds’
Transparency: What Counts
Just a quick thought. What enabled frauds like Madoff, Petters, Dreier, and Israel was not the opacity of their strategies or processes, it was the opacity of their operations. For all I care, a manager can use astrology to make his investment decisions. So long as there are material accounting, legal, and [...]
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Tags: hedge funds, madoff
Quick Update
Where have I been? Things have been really, really busy. Not posting is kind of a self-sustaining loop. The less often I look at my own blog, the less inclined I am to post.
So here’s where I am: got my study materials for CAIA level 2 a few weeks ago. I’m somewhat [...]
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Tags: business school, CAIA, hedge funds, madoff
Sellout?
I think this article at naked capitalism touches on an interesting point: could forced selloffs by hedge funds really explain recent dips in the market?
I do not believe we have seen the full effect of hedge fund redemptions yet. We don’t know everything about every fund’s redemption terms, but Dec 31 is a fairly common [...]
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Tags: hedge funds
It’s not so bad in the middle
First, congrats to all who passed their exams & better luck next time to those who’ll have to try again. My overall feeling about CAIA level I is that it was surprisingly light on the quantitative stuff. I studied performance and risk measures so hard and BAM there are like 20 questions on convertible bonds. [...]
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Tags: CAIA, hedge funds
Eww
I just realized I dreamt last night about failing the CAIA exam. Eww. Results for level one are out on Tuesday I think.
In other news, a number of sources latched onto HFR’s report that September was the Worst Month for Hedge Funds Ever. Check out some of the better stories on Friday’s Abnormal Returns.
Had a [...]
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Tags: CAIA, hedge funds
AllAboutAlpha has an interesting take on a recently published study regarding the relationship between tenure, size, and returns in fund of funds. Briefly, young, small funds tend to outperform their larger peers, but as they age, small funds underperform funds with more AUM. AllAboutAlpha also points out the really interesting dispersion of size and performance [...]
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Tags: hedge funds
Expected Rate of Return
I don’t have a problem with this post at Bull Bear Trader. I don’t even really care what that author has to say. It’s how the post was presented at Abnormal Returns that bothers me.
An investing paradox: emerging hedge funds outperform, but they are finding it harder to raise capital. (Bull Bear Trader)
It’s not a [...]
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Tags: hedge funds
Circular investing
Story of the day (month?) is that SWF’s are coming in to fill the funding gaps for many hedge funds and FOFs. What I find amusing about this is the implication that these SWF’s are flush with cash from rising commodities prices. Throug the lens of our condescending-developed-nation goggles, there is an element of colonial [...]
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Tags: hedge funds, SWF
Hedge Fund Flows
FiNTAG is one of my new must-reads. About half a dozen hedge-fund related bits of commentary every morning. The product of some number of anonymous, British hedgies. Hard to deny the conservative political bent, but, when delivered with enough wit and acidity, I find it palatable enough.
A particular post (scroll down, FiNTAG [...]
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Tags: hedge funds
Fund of hedge fund alpha is a measure of a FOF manager’s ability to select hedge funds that outperform a relevant benchmark. This is nuanced. It’s not a measure of the FOF manager’s ability to outperform the market, but rather a hedge fund index constructed post-facto as the hedge funds report their performance. [...]
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Tags: hedge funds
