Sun, May 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedged mutual funds (HMFs) may be a dominant trend in next hedge fund industry cycle - Part one

Thursday, July 30, 2009

By Benedicte Gravrand, Opalesque London:

Last year, hedge funds lost on average 20%. But mutual funds lost around twice as much. However, there is a marked trend towards a convergence between the two styles and structures, particularly in the U.S.

Mutual funds have been under pressure for a while, what with underperformance and competition from the better-yielding alternative investment funds, and the cheaper ETFS and other index funds. So they are starting to use the clever tools that came out of the investment world's laboratories, namely: alternative investment funds, to generate higher returns. So the retail market can now access such tools as shorting, leverage (although not as much as with hedge funds due to regulations), derivatives, etc. for less fees, more transparency, better liquidity and more regulatory oversight.

Naik, Agarwal and Boyson, in their 2007 working paper entitled "Hedge Funds for Retail Investors? An Examination of Hedged Mutual Funds" (Hedge Fund Centre, London Business School) predicted that "...hedged mutual funds will play an increasingly important role in the field of investment management as they provide access to hedge-fund like strategies with the fee structure, liquidity, and regulatory requirements of mutual funds."

Next cycle? According to a Greenwich, CT based consultancy firm ......................

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. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit

  2. Investing - Billionaire Wilbur Ross likes the look of Chinese bad loans, Hedge funds are still relevant in a diversified portfolio: 4 fundamental criteria for superior manager selection[more]

    Billionaire Wilbur Ross likes the look of Chinese bad loans From Bloomberg.com: U.S. billionaire Wilbur Ross said he’s considering investing in nonperforming loans in China, as Moody’s Investors Service said that the nation has the tools to prevent a financial crisis in the near term. I’

  3. Investing - Blackstone gives pricey Canadian energy and property thumbs down, One of the most concentrated hedge fund bets is getting crushed, Facebook is hedge funds' new tech darling,[more]

    Blackstone gives pricey Canadian energy and property thumbs down From Bloomberg.com: Canada’s energy assets are uneconomic and real-estate markets overvalued, making them less attractive for investment than in the U.S. and elsewhere, according to Tony James, president of Blackstone Group

  4. Study - Only 30% of institutional hedge fund portfolios beat the benchmark[more]

    Bailey McCann, Opalesque New York: A new study from CEM Benchmarking, an independent provider of cost and performance analysis for pension funds, shows that only 30 percent of institutional investors hedge fund portfolios beat the benchmark after fees. The study provides in depth analysis of real

  5. Opalesque Exclusive: $1bn hedge fund club grows to 668 managers, continues to dominate (Part One)[more]

    Komfie Manalo, Opalesque Asia: Despite an underwhelming 2015 and a slow start to 2016 in terms of performance, one group of managers that continues to dominate the assets of the hedge fund industry is the so called $1bn club – hedge fund managers with at least $1bn in assets under management (AU