Sat, Dec 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Dr. Meier: many fund of hedge funds managers are still not adequately equipped to execute proper selection and DD

Monday, March 05, 2012

amb
Prof. Dr. Peter Meier
Benedicte Gravrand, Opalesque Geneva:

Prof. Dr. Peter Meier heads the Centre for Alternative Investments & Risk Management at the Zurich University of Applied Sciences (Zhaw), as well as hedgegate, a free database and index for Swiss funds of hedge funds. He talked to Opalesque about hedge funds performance in 2011, guidelines for fund selection and investing in funds of hedge funds, and the state of the fund of hedge funds industry, globally and in Switzerland.

Question: Why was 2011 so difficult for hedge funds and for funds of hedge funds?

Answer: The year 2011 was a bogey year for financial markets. Only three years after the equity crash in 2008, in the aftermath of the credit crisis, 2011 brought losses for all risky asset classes, and even for bonds of downgraded governments like the Greece, Portugal etc.

Hedge funds are supposed to deliver absolute returns, and again they failed to achieve this proposition. From our model-based quantitative research we can detect many explanatory factors. On average, hedge funds have a correlation with equity markets and with emerging markets, and small-cap equities in particular. All equity factors contributed negatively to hedge fund returns. Global equity from developed market was down 8%, emerging markets and small caps 20%. Hedge fund re......................

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 - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und

  5. Performance - Lansdowne, Man Group, other hedge funds profit from shorts in oil, Turmoil boosts hedge funds that bet against Russia, oil, CTAs post strongest returns since December 2010[more]

    Lansdowne, Man Group, other hedge funds profit from shorts in oil From Valuewalk.com: The rising short interest in oil companies implies that the worst for oil is yet to come. Data from Markit shows that short exposure in energy sector of S&P 500 is still looming close to the highest mar