Sat, Feb 13, 2016
A A A
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. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  2. Asia - Hedge fund manager Kyle Bass estimates China's foreign reserves below critical level[more]

    From Nasdaq.com: Investor Kyle Bass stepped up his attack on China's currency, arguing in an investor letter distributed Wednesday that the second-largest economy's foreign reserves are "already below a critical level." The comments mark the latest effort by hedge funds and other investors to raise

  3. Investing - Some hedge funds want to make subprime auto loans next big short, 11 hedge funds that are “all in” on the FANG stocks, Hedge funds short London luxury homes, Cynet raises $7 million from U.S. hedge fund[more]

    Some hedge funds want to make subprime auto loans next big short From Bloomberg.com: A group of hedge funds, convinced they have found the next Big Short, are looking to bet against bonds backed by subprime auto loans. Good luck finding a bank willing to do the trade. Money manage

  4. Investing - Hedge funds see selloff in European bank stocks as buying opportunity[more]

    From WSJ.com: The massive selloff in European bank stocks and bonds is overdone and presents a “phenomenal” buying opportunity, according to some of Europe’s top hedge-fund managers. Despite a 28% slump in European bank stocks this year, including a 38% fall in Deutsche Bank AG and a 34% drop in Soc

  5. Legal - Carlyle accused of fraud by ex-employee, Hedge funds win CDS breach of contract suit against Deutsche Bank, Hedge fund asks for OK on $27.5m Goldman CDO deal, SFO examines Barclays hedge fund profits[more]

    Carlyle accused of fraud by ex-employee From AI-CIO.com: A former portfolio manager claims he was fired for blowing the whistle on “crazy” and “irresponsible” investments. Carlyle Group has been sued by a former portfolio manager for one of its hedge funds, who accused the firm of “knowi