Sat, Nov 22, 2014
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. Regulatory - Stringent rules for hedge funds make the financial system fragile[more]

    From FT.com: …It is one thing to impose a regulatory burden when there is a clear need to do so. Banks are underwritten by taxpayers via deposit insurance as well as the too-big-to-fail safety net; they need to be reined in, and if they shrink as a result, that may be welcome. But it is another thin

  2. Investing - Apple: Hedge funds are crazy about it, Greenlight Capital took stake in Citizens Financial after IPO, Tiger Global added to Hertz, exited Dollar General last quarter, Oberweis sells NQ Mobile stake as Valiant adds shares, Whitney Tilson sticks to losing bet on MagicJack shares, Brigade Capital backs €90m Quinn sale[more]

    Apple: Hedge funds are crazy about it From Techinsider.net: Apple Inc. is still the most popular stocks among hedge funds. According to a recent report by hedge fund tracking site Insider Monkey, more than one out of 5 hedge funds are invested in Apple Inc. At the moment there are

  3. Greenlight Re CEO says hedge fund reinsurance strategy buzz is validating[more]

    From Artemis.bm: The attention being paid to the hedge fund reinsurance business model and the fact that others are now looking to leverage bits of it within their own strategies, is validating for reinsurer Greenlight Capital Re, according to CEO Bart Hedges. There has been an increasing buzz

  4. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  5. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca