Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Should investors 'buying the dip' when a hedge fund manager's performance gets behind his historical returns?

Tuesday, August 29, 2017

Komfie Manalo, Opalesque Asia:

Hedge fund investors should look at the expectation of the strategy, the tolerated updownside/upside capture and alpha generation over a longer period of time and use that as a general framework to evaluate a particular fund instead of focusing on "consistent performance," said Johannes Asp of Stockholm based equity long/short manager Madrague Capital Partners at the latest Opalesque 2017 Nordic Roundtable. Madrague Capital has a 15 years track record and very good annualized returns, and so the question came up during the discussion if the firm would be having a certain focus trying to ensure that returns are consistent?

Asp admitted that his team "implicitly tries to ensure that the returns are consistent in the sense that we are trying to meet a certain return every year. What I think investors should do, is look at the expectation of the strategy, what's the tolerated downside/upside capture and alpha generation over a longer period of time and use that as a general framework to evaluate Madrague and other funds as well. Then looking over that longer period of time, an investor can be comfortable with the type of volatility/return a strategy has delivered over a longer period of time. As long as the fund is within that band, I wouldn't really be worried. An investor should then also rather be buying the dip......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1