Wed, Nov 22, 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. Middle East - Saudi-Iran war would create this domino effect of global disaster, Saudi billionaires said to move funds from region to escape asset freeze[more]

    Saudi-Iran war would create this domino effect of global disaster From CNBC.com: Events appear to be spinning out of control in the Middle East, and the threat a Saudi-Iranian war is looking increasingly credible. Make no mistake, an out and out conflict between the two nations would be

  2. Paradise Papers - Robert Mercer's effort to avoid taxes appears in Paradise Papers, Tycoon made $41m from 'people's fund', Oxford and Cambridge 'investing millions of pounds offshore', Paradise Papers reveal[more]

    Robert Mercer's effort to avoid taxes appears in Paradise Papers From Therealnews.com: The Guardian has reported that conservative billionaire and Trump backer Robert Mercer "appears as a director of eight Bermuda companies in the Paradise Papers," the trove of documents reviewed by the

  3. Wall Street hedge fund veteran hits highs with copycat tactics[more]

    From FNLondon.com: A Wall Street veteran who has made big returns for wealthy clients by piggybacking on the strategies of well-known hedge funds is taking his novel approach to stock-picking to institutional clients. Dixon Boardman, chief executive of $2.5bn fund of hedge funds Optima Fund Ma

  4. Launches - Eaton Vance, Oaktree to launch diversified credit NextShares fund, FIM launches Nordic AI-powered fund[more]

    Eaton Vance, Oaktree to launch diversified credit NextShares fund Eaton Vance Management, a subsidiary of Eaton Vance Corp., announced the expected mid-November launch of Eaton Vance Oaktree Diversified Credit NextShares, a new Eaton Vance-sponsored exchange-traded managed fund. Eaton Va

  5. Outlook - Gundlach's stock market warning comes true[more]

    From Bloomberg.com: Jeffrey Gundlach has been warning something's got to give. Based on the past two days, looks like we have our answer. Stocks fell around the world a second day and high-yield bonds headed for a fourth straight loss, resuming a historic correlation that the hedge fund manager on W