Fri, Nov 27, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund industry returns show lowest beta level since 2004 – Credit Suisse/Tremont

Monday, April 26, 2010

From Kirsten Bischoff, Opalesque New York:

As the financial crisis unfolded and hedge funds suffered negative performance in 2008, much of the criticism pointed at the industry accused hedge fund managers of taking performance fees off the capture of market beta.

Research from the Credit Suisse/Tremont (CS/T) Hedge Fund Index team (Staying the Course: Q1 2010 Hedge Fund Update) that focuses on January 2000 to January 2010 figures shows that from 2004 to 2007 hedge fund returns were increasingly driven by beta. However, the research also shows that during the last two down market cycles, hedge fund managers proved their ability to turn to other strategies in order to capture performance, and currently, the industry is at the lowest levels of beta driven returns since 2004.

“This has led many managers to introduce a number of diverse strategies that aim to capitalize on distinctive market opportunities, which have allowed hedge funds to produce stable and positive returns irrespective of equity market movements through the first quarter,” says the report.

The CS/T research illustrates the importance of taking a longer-term view when evaluating the hedge fund industry’s performance. Capturing beta in times of market strength is beneficial to performance, as managers participate in up-markets, and then seek to add their own alpha to t......................

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: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November