Wed, Jul 1, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Steinbrugge: Third party marketers can show investors alternatives to "mediocre" hedge fund performance

Thursday, February 27, 2014

Komfie Manalo, Opalesque Asia:

Donald A. Steinbrugge, a managing partner at Agecroft Partners, LLC said investors should augment the research provided by their hedge fund consultant by performing their own research and by leveraging the resources offered by some of the top third party marketing firms or 3PMs in the industry.

Steinbrugge said, "Average hedge fund performance has been mediocre at best over the past five years, which is not surprising because most of the asset flows have been concentrated in a small percentage of firms with the largest assets under management. Many of these firms have morphed into asset gatherers from alpha generators by managing significantly more assets than their strategies can optimally handle. It is no wonder that a study done by Pertrac showed that over a 16 year period, small hedge funds out performed large hedge funds in 13 out of 16 years with an annualized compound ROR for the average small fund of 12.50% compared to that of large funds of 9.16%. In 2013 the Barclay Hedge Fund index, which equally weights all managers, was up 11.11%, however the Bloomberg Hedge Fund index, which gives larger weightings to the biggest managers, was up only 7.4%."

He cited the trend amongst investors, especially amongst pension funds, to put their money into largest fund managers. Steinbrugge said both public and corporate pensions are increasingly shifting their hedge fund ......................

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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  3. Hedge funds panic over Greece[more]

    Komfie Manalo, Opalesque Asia: Some investors are in panic mode as Greek Prime Minister Alexis Tsipras announced Sunday night that the banks and the stock market would be closed Monday, said

  4. Alternative investment industry could grow to $13.6tln in five years[more]

    Komfie Manalo, Opalesque Asia: Leading auditing and advisory group PwC said that the global alternative investment industry, which includes hedge funds, private equity and real assets, is set to increase to $13.6tln within the next five years. "Be

  5. Qbasis gets $200m-plus investment in 'black swan' hedge fund[more]

    From Reuters.com: A hedge fund that more than doubled clients' money during the 2008 financial crisis has attracted more than $200 million from an investor aiming to cash in on fresh ructions in global markets. Qbasis Invest has secured the investment from Britain's Omada Capital, Florian Wagner, wh

 

banner