Fri, Mar 27, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. Other Voices: The role of diversification in CTA portfolios[more]

    2014 brought a resurgence of managed futures strategies, or CTAs, which performed very well as a whole, outperforming all other hedge fund strategies. However, a closer look reveals that there was a wide range of performance, or return dispersion, across managers. The bottom line? Not all CTAs

  4. Neuberger Berman unit buys 20% stake in activist hedge fund Jana Partners for $2bn[more]

    Komfie Manalo, Opalesque Asia: Neuberger Berman’s unit Dyal Capital Partners bought a 20% stake in activist hedge fund firm Jana Partners worth $2bn, WSJ.com reports. The deal comes as activi

  5. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

 

banner