Fri, Sep 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Performance: Harry Kat`s FundCreator update says performance in line with expectations

Friday, April 04, 2008

Despite a really bad quarter for equity (S&P 500 -10%), emerging markets (Hang Seng -17%), and many other markets, including hedge funds (HFRX -3%), FundCreator based funds have performed very much in line with expectations.

The Aquila Statistical Value Market Neutral Fund, the first FundCreator-based fund, generated +2.08% in Jan, +0.18% in Feb and -1.82% in March. In all, this means +0.41% YTD.

New Wave Asset Management's Aliter Fund, which has gone live on Feb 19 and which will be publicly launched later this month, made +1.08% in Feb and 0% in March, making for a YTD performance of +1.08%.

One might be tempted to compare the above performance with that of the small number of hedge funds that have done quite well over the last couple of months. This compares apples with oranges, however. Hedge funds generate returns by taking directional bets. Sometimes they win, sometimes they lose. The above FundCreator-based funds are primarily about smart risk management. The goal is not to take bets, but to maintain a constant, low correlation, risk profile while harvesting an attractive risk premium over time. A completely different approach, and therefore very different performance.

Obviously, we are very proud that, especially in these volatile times, things are working out this well. The proof is always in the pudding, they say, and this pudding is proving a lot of people (incl. all those so-called hedge fund replicators) wrong!......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Cliff Asness attracts $360 million as liquid alternative funds hold up[more]

    From Bloomberg.com: As U.S. stocks suffered their worst month in more than three years in August, Clifford Asness’s managed futures fund was able to profit. Investors are taking notice. The $9.12 billion AQR Managed Futures Strategy Fund pulled in an estimated $360 million in net subscriptions last

  2. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  3. Performance - Einhorn and Loeb's hedge funds both decline 5% in August, Some target-date funds miss in the market turmoil[more]

    Einhorn and Loeb's hedge funds both decline 5% in August From Reuters.com: Hedge fund billionaires David Einhorn and Daniel Loeb saw their main funds lose roughly 5 percent in August during a dramatic market sell off, two people familiar with their returns said on Monday. Einhorn's

  4. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  5. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

 

banner