Mon, Sep 25, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Simon Lack: mediocre hedge fund performance nothing new

Tuesday, October 23, 2012

Bailey McCann, Opalesque New York:

Simon Lack is a veteran of the hedge fund industry. After 23 years at JP Morgan, Lack went on to found SL Capital Advisors a firm which provides separately managed accounts to investors with an interested in master limited partnerships; high dividend yielding stocks - hedged and unhedged, and a deep value equity strategy. Lack, also recently authored a book - The Hedge Fund Mirage, which he spoke about with Matthias Knab for Opalesque TV.

In the book, Lack writes that while there are many happy hedge fund investors, "on average, a dollar invested in hedge funds would have been better off invested in treasury bills." He explains that has hedge funds attract more assets, like they did throughout the 1990s, returns actually become worse.

"I think that what is important is for investors to look at hedge fund returns based on an asset weighted, or an internal rate of return basis because science is a real factor for the hedge fund industry. It is a fact of the individual managers, small hedge funds do better than big ones. Big hedge funds generally did better when they were small. The same is true for the hedge fund industry," Lack says. "There is a very clear negative correlation between asset size and performance."

He notes that while on the whole, hedge funds are still very good investments, the bulk of returns go back to managers ......................

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. iCapital Network enters deal to acquire innovative U.S. private equity access fund platform from Deutsche Bank[more]

    Komfie Manalo, Opalesque Asia: Financial technology platform iCapital Network has entered into a definitive purchase agreement to acquire the US Private Equi

  2. Asia - Hedge funds used to love shorting China. Now, not so much, Fledgling China FoFs require careful use: NCSSF, Amac, Japanese banks turn to PE, hedge funds for returns[more]

    Hedge funds used to love shorting China. Now, not so much From Bloomberg.com: A sharp devaluation. A credit crisis. And an economic hard landing. That's what some of the biggest names in the hedge fund industry were predicting for China after the nation's stocks and currency tumbled in 2

  3. Launches - Orchard launches new credit platform, ETN based on hedge fund to launch on the LSE[more]

    Orchard launches new credit platform Orchard Platform has rolled out Deals as a part of its new platform launch. With the addition of Deals to their suite of technology solutions for loan originators and institutional investors, Orchard Platform takes the next step in their evolution. De

  4. Neuberger Berman closes $1.1bn Credit Opportunities Fund[more]

    Neuberger Berman, a private, independent, employee-owned investment manager, announced that NB Private Equity Credit Opportunities Fund LP closed on $1.1 billion of limited partner commitments. The Fund seeks to invest in the secured and unsecured debt of private equity-backed companies, primarily i

  5. Capital Dynamics launches mid-market private credit business[more]

    Capital Dynamics, a global private asset manager, has launched a dedicated Private Credit Asset Management business. Experienced industry executives Jens Ernberg and Thomas Hall have joined Capital Dynamics to co-lead the company's new private credit initiative. They are based in Capital Dynamics' N