Sun, Mar 1, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: As the shock subsides

Wednesday, March 25, 2009

This article was authored by William Sword Jr. and Lee Gladden. William Sword Jr. is managing director of Wm Sword & Co., Princeton, NJ, an investment banking firm that advises private equity and alternative investment clients. Lee Gladden is a member of the international advisory council for Wm Sword & Co. as well as president of Princeton International Management:

It wasn't supposed to turn out like this. Hedge fund managers' assurances of absolute returns and liquidity in diverse environments were not honored last year amid a global financial credit crisis in which even the most historically liquid markets became treacherous to navigate and difficult to transact in.

As they take stock, institutional investors are hardly comforted by the knowledge that losses in their U.S. and international equity portfolios in 2008 ranged from one-third to one-half of total value, while hedge fund returns were on average down only approximately 15-20 percent. Nor are they pleased that redemption requests were sometimes fulfilled and other times delayed as many hedge fund firms sought to limit or block withdrawals.

This year will test the hedge fund business like no other to date. With mounting redemption calls, dim prospects of earning performance fees for many funds, and the absence of the leverage that helped turn even average managers into stars in earlier benign market conditions, the challenges are indeed severe.

While we're confident the overall appetite for hedge fun......................

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. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie