Sun, Sep 24, 2017
A A A
Welcome Guest
Free Trial RSS
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

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. Asia - Hedge funds used to love shorting China. Now, not so much, Fledgling China FoFs require careful use: NCSSF, Amac, Japanese banks turn to PE, hedge funds for returns[more]

    Hedge funds used to love shorting China. Now, not so much From Bloomberg.com: A sharp devaluation. A credit crisis. And an economic hard landing. That's what some of the biggest names in the hedge fund industry were predicting for China after the nation's stocks and currency tumbled in 2

  3. Launches - Orchard launches new credit platform, ETN based on hedge fund to launch on the LSE[more]

    Orchard launches new credit platform Orchard Platform has rolled out Deals as a part of its new platform launch. With the addition of Deals to their suite of technology solutions for loan originators and institutional investors, Orchard Platform takes the next step in their evolution. De

  4. 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

  5. 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