Mon, Jun 29, 2026
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Protecting the downside major driver of hedge fund outperformance (+88%) against equities (-23.33%) over past ten years - Hennessee

Wednesday, January 20, 2010

amb
From Kirsten Bischoff, Opalesque New York:

A ten-year overview of hedge fund performance makes the case for increased exposure to the alternative investment vehicles. With the Hennessee Hedge Fund Index outperforming the major equities indices by a whopping +111% (+88% for the Hennessee Hedge Fund Index vs. -23.33% for the S&P 500, -9.30% for he DJIA and -44.24% for the NASDAQ Composite Index) over the ten-year period ending December 2009, hedge fund managers enter 2010 with a strong asset-raising story to present to investors.

Alpha generation through capital preservation a big driver of outperformance 'Alpha generation' may be the current buzz phrase favored by hedge fund marketers, however the focus is typically on alpha generated during rising markets. The ten-year performance overview shows that the long-term success of hedge funds is also largely driven by alpha generated through minimizing downside risk.

"Unlike mutual fund managers, hedge fund managers typically have wide discretion over asset mix and stance towards the market, and they are paid to add value accordingly."Paul Compton, Head of Product Management, hedge fund technology provider SunGard Alternative Investments told Opalesque. "Bull markets are easier markets" most hedge funds are net-lon......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Nvidia extraordinary growth and the challenge of sustaining demanding valuations over time[more]

    Antonio Di Giacomo, Senior Market Analyst at XS.com, writes: Nvidia has established itself as one of the most extraordinary growth companies in the global technology sector. Over the past two fiscal years, its revenues have risen from levels close to $60 billion annually to well above $120 billi

  2. Secondaries take center stage: What the 2026 PE landscape means for GPs and investors[more]

    Matthias Knab, Opalesque for New Managers: The 2026 edition of Dechert's Global Private Equity Outlook - "Signs of a Gradual Thaw" - marks a notable shift in industry sentiment. After years of compr

  3. And, finally: Time to share it with the people[more]

    From Newsoftheweird: Leavenworth, Washington, has become a tourist destination because of the Bavarian theme businesses have adopted there, NPR reported. One shop, the Leavenworth Nutcracker Museum, houses the world's largest nutcracker collection, thanks to 101-year-old Arlene Wagner. Wagner sta

  4. Opalesque Exclusive: Private Markets Evergreen Funds - An Insider's View[more]

    Matthias Knab, Opalesque for New Managers: Private Markets Evergreen Funds: What Investors Need to Know Before They Dive In The democratization of private markets is well underway. Structural barriers t

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m