Tue, Feb 7, 2012
A A A
Welcome Guest
Free Trial RSS RSS icon
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 Two

Friday, July 31, 2009

By Benedicte Gravrand, Opalesque London:

This is the second of a two-part article. Part One was published yesterday and can be found here Source

What are HMFs? According to the Lake Partners report, hedged mutual funds are open-end investment companies registered under the US Investment Company Act of 1940 which implement their underlying portfolios using hedging strategies or investments on an ongoing, regular or periodic basis. Although open-end mutual funds are not the only ones in the game: registered closed-end funds, ETFs and ETNs also use these strategies.

Strategies include long/short investing, hedging (options, futures, derivatives, etc.) and alternative strategies (commodities, leverage, derivatives, illiquid private placement or distressed securities and other instruments).

Hedged mutual funds provide access to alternative strategies with lower costs, more oversight, and better liquidity and transparency than hedge funds, says the report. Their regulatory safeguards include independent custody, limitations on leverage, liquidity and daily pricing, and lower costs.

Investing in HMFs These funds indeed offer an opportunity for investors and professionals to have greater choice, additional sources of potential returns, more tools for risk management and enhanced diversification.

Those driving the current and f......................

To view our full article Click here

Banner

Banner

Banner

Banner

Banner

Banner

Banner
Today's Exclusives Today's Other Voices Banner More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: CrossBorder: the euro may grow stronger this year[more]

    Benedicte Gravrand, Opalesque Geneva: Volatility may reign, uncertainty may now be the norm in financial markets, but there are still some who bet on a rebound of the euro, rather than its death. The European Central Bank (ECB) provided €489bn ($644bn) in 3-year emergency loans to ban

  2. Opalesque Exclusive: 'Alternative Alternatives' investment funds lose 0.93% (est.) in December, -7.14% in 2011[more]

    Opalesque Ltd., a leading provider of online information services to the alternative investment industry, today announced the results of the Opalesque A SQUARE ('alternative-alternatives') indices covering the performance of niche alternative investment funds. The indices are calculated base

  3. Opalesque Exclusive: Nobody knows what would really happen to fund industry if eurozone were to break up[more]

    Benedicte Gravrand, Opalesque Geneva: What would happen to the fund industry if the eurozone were to deteriorate or even break up? Would funds move to other domiciles, and which ones? According to Simon Osborn, CEO of FundDomiciles.com, we

  4. Regulatory – SEC preps for hedge, private equity fund work, UK looks to bridge regulatory divide with U.S[more]

    SEC preps for hedge, private equity fund work From Reuters/XE.com: The U.S. Securities and Exchange Commission is about to learn just how big the private fund industry really is. Then it will take on a new mission: Figuring out where the risks in the industry exist, something private fun

  5. Expertise and insights on investing in “softs”: Market-specific volatility tends to be linked to weather anomalies that influence the individual softs on a seasonal basis.[more]

    Market-specific volatility tends to be linked to weather anomalies that influence the individual softs on a seasonal basis.