Opalesque Exclusive: Volatile markets redefine trade component of hedge fund strategies, "position calibration" becomes source of alpha
Friday, July 31, 2009
From Kirsten Bischoff, Opalesque New York:
The markets have changed. Levels of volatility have greatly increased, and the uncertainty that the financial crisis has unleashed on investors is likely to remain for the foreseeable future. These factors make it much more likely that the markets will continue to move from one extreme to the next and strengthen the need for investors to understand and analyze the trade methods of hedge fund managers during the due diligence process.
Specific to the hedge fund industry, it has been determined that investors reallocating to hedge funds are favoring the simplest and the most liquid strategies, w......................