Fri, Jul 1, 2016
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. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  2. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  3. Chesapeake Partners to liquidate hedge fund amidst 'hostile environment'[more]

    Komfie Manalo, Opalesque Asia: Chesapeake Partners Management, the hedge fund run by woman fund manager Traci Lerner said it would return investors’ money after 25 years because the market environment has become "hostile" to manage other people’s money, reported

  4. Europe - George Soros says Brexit has ‘unleashed’ a financial markets crisis, Brexit—what we know, Will the UK’s departure be a ‘soft-Brexit’ or a ‘hard-Brexit’?, Brexit: Six-point action plan for asset managers[more]

    George Soros says Brexit has ‘unleashed’ a financial markets crisis From Bloomberg.com: Britain’s decision to leave the European Union has “unleashed” a crisis in financial markets similar to the global financial crisis of 2007 and 2008, George Soros told the European Parliament in Bruss

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.