Sat, Nov 28, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Merlin's seven values for hedge funds

Thursday, May 27, 2010

Benedicte Gravrand, Opalesque London:

As well as a twelve-point guideline to best practice, Ron Suber, Senior Partner at U.S.-based hedge fund service provider Merlin Securities, also listed the minimum standards that hedge funds should adhere to in order to satisfy their investors at the recent SALT conference in Las Vegas.

Indeed, it is no longer enough to present net performance history, for example; hedge funds should show where the alpha is in those numbers. They should also explain their rationale for allocating the way they do. And demonstrate how they can avert different kinds of risks.

Furthermore, it is no longer enough to be a talent on the trading desk; one must also perform in the boardroom: hedge fund managers should make their presentation comprehensible, as clients tend to no longer invest if they feel even a little confused. Managers should also be wary of scale, and accept the new hedge fund zeitgeist graciously: it's all about being transparent now.

Here is Suber's list of minimum requisites:

The 4 Quantitative Minimums:

  • Articulation of your Alpha and Beta vs. your custom benchmark. We see investors separating Alpha and Beta performance and allocating differently to it - they are paying for Alpha and demanding accurate measurement of it.
  • Detailed asset allocation versus stock selection analytics (relative attribution)
  • Intra-month exp......................

    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