Thu, Apr 2, 2015
A A A
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: Does the hedge fund industry benefit society?[more]

      This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

    2. Opalesque Roundtable: Emerging managers should avoid chasing 'institutional unicorns'[more]

      Bailey McCann, Opalesque New York: For managers looking to raise a new fund after the crisis, marketing efforts will need to be significantly different, according to delegates at the recent Opalesque Texas Roundtable. "Most of the smaller managers come to the whole fund-raising and marketing

    3. Cohen's private investments deliver strong 7.5% gain in Q1[more]

      From Reuters.com: Billionaire Steven A. Cohen's investments gained 7.5 percent in the first three months of 2015, according to a person familiar with the numbers, helping the former hedge fund manager extend his string of market-beating returns. Cohen's Point72 Asset Management, which invests

    4. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

      Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

    5. Opalesque Exclusive: Cyber security and hedge funds: increased awareness, Part One[more]

      Benedicte Gravrand, Opalesque Geneva: If you look at the recent cybersecurity news from Bloomberg, hackers are frightening the people: they steal photos and threaten to expose them, they can break into ATMs, they ha

     

    banner