Mon, Aug 21, 2017
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. Opalesque Exclusive: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. Comment: "Long-Term Investing": What managing drawdown risk can do to your long-term returns[more]

    Matthias Knab, Opalesque: Real Investment Advice writes on Harvest Exchange: Last week, I was having lunch with a prospective portfolio management client discussing the curre

  3. Jasper Capital International joins Hedge Fund Standards Board[more]

    Komfie Manalo, Opalesque Asia: Diversified and systematic investment firm Jasper Capital International has become the second China-based signatory to the Hedge Fund Standards Board (HFSB), an organization that brings hedge fund managers and investors together to set standards for the hedge fund i

  4. Investing - Hedge-fund honchos including David Tepper are loading up on Alibaba, Billionaire hedge fund manager Stanley Druckenmiller is betting big on the Chinese consumer, Big-name U.S. hedge funds shed healthcare stocks during the rally in second-quarter, U.S. hedge funds bearish on FAANG stocks in second-quarter, Hedge fund titan Viking Global made a $680 million bet on scandal-plagued Wells Fargo[more]

    Hedge-fund honchos including David Tepper are loading up on Alibaba From CNBC.com: David Tepper's Appaloosa Management and three other he ge funds took new stakes in Chinese e-commerce giant Alibaba in the second quarter, according to the latest quarterly filings. Appaloosa disclos

  5. FinTech - Danger: Crowdfunding on the wrong platform could force you to go public[more]

    From LinkedIn.com: Some equity crowdfunding platforms are putting startups at serious risk. Working with a platform that doesn't structure your deal appropriately could jeopardize your ability to raise future capital or worse, force you to become a public reporting company. The emergence of eq