Tue, Sep 26, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Study finds new hedge fund managers offer potential for greater returns

Thursday, November 28, 2013

Beverly Chandler, Opalesque London for New Managers:

The latest Hedge Fund Spotlight from Preqin examines emerging hedge fund managers and finds that hedge funds launched by new managers offer the potential for greater returns. The firm says that first-time funds on average post better returns than funds launched by established firms, but institutional investor interest in emerging managers continues to decline.

Preqin’s figures reveal that the average emerging manager long/short fund launched since 2007 delivered annualized net returns of 8.80% in its first three years of trading, compared with an annual rate of 5.38% from newly-launched funds managed by established firms.

However, first-time funds exhibit more volatility than funds managed by experienced firms. The average annualized volatility of returns during the three years following inception were approximately 14.7% for established manager long/short funds compared with 17.3% for emerging manager long/short funds.

Other key facts to emerge from the study include:

  • 22% of emerging manager funds launched since 2007 made a loss in their first year of trading, compared to 26% of funds launch ed by established managers.
  • However, emerging managers that suffered a loss in the first year tended to experience larger declines. Over a quarter of loss-making emerging manager funds pos......................

    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. 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

  3. 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

  4. Artificial intelligence may replace 40% of all jobs: Bridgewater founder Ray Dalio[more]

    From Foxbusiness.com: Bridgewater Associates founder Ray Dalio said Friday that almost half of the jobs in the next two decades will be replaced by artificial intelligence. "By in large, the world is going to largely consist of people who can take language and put it into code, which then allo

  5. Opalesque Exclusive: US investment firms must have tailored cybersecurity policies and procedures in place[more]

    Benedicte Gravrand, Opalesque Geneva: Cyber attacks are on the increase. One of the last victims was Equifax, a US credit scoring agency. As a result of its insufficient cybersecurity program, the agency was slapped with state and federal investigations, private lawsuits and a summons for chief e