Wed, Jan 18, 2017
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. The Big Picture: The case for emerging market debt in 2017[more]

      Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

    2. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

      This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

    3. Short Selling - Long-short hedge funds are ditching the shorts to focus on longs[more]

      From Bloomberg.com: What happens when you take the "short" out of a long-short trading strategy? Some hedge funds are about to find out. Equity long-short fund managers, the biggest category in hedge funds, hold the fewest bearish stock bets on record, data compiled by Credit Suisse Group AG s

    4. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

      From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

    5. Some hedge funds strong start in 2017 nice contrast to 2016[more]

      With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee