Thu, Jul 28, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Morningstar to calculate estimated hedge fund returns based on public filings

Tuesday, June 21, 2011

John Rekenthaler
Opalesque Industry Update - Morningstar, Inc., a provider of independent investment research, announced that it has begun to calculate estimated returns for hedge funds based on publicly available filings. The company has estimated quarterly returns for approximately 1,700 hedge funds, including some of the largest and most prominent in the industry.

Although hedge funds do not have to publicly file disclosures, many entities that hold hedge funds, like registered funds of hedge funds, do. Morningstar culls information from these funds of funds using two types of filings to estimate returns—portfolio holdings disclosures and financial statements. From these filings, Morningstar collects the beginning market value of an individual hedge fund holding in a fund of hedge funds and the ending market value. If the fund of funds did not add or remove cash from the underlying hedge fund during the period, Morningstar can calculate an estimated return.

"The vast majority of hedge fund assets are concentrated in a small number of very large funds, and it's precisely these funds that are the least likely to report performance," said John Rekenthaler, vice president of research for Morningstar. "These new estimated returns can provide a unique window into the performance of popular hedge funds and the entities that invest in them."

When multiple registered funds of hedge funds hold the same hedge fund, Morningstar reports the median return as the estimated performance. Morningstar also lists each individual performance estimate related to the fund as well as the name of the registered hedge fund investor. Performance estimates of a fund may vary from one investor to another due to differences such as fees.

"In contrast to the self-reported composite returns provided to hedge fund databases or the audited performance numbers in registered funds' annual reports, estimated performance reflects the actual experience of specific investors. With estimated returns, we not only get an overall picture of performance, but we can see how different investors fared with their investments in the same hedge fund," Rekenthaler added.

Morningstar has approximately 11,000 hedge funds and funds of hedge funds in its database. Estimated hedge fund returns are currently available as a licensed data feed and will be available in Morningstar Direct(SM), the company's web-based global research platform for institutional investors, in the coming months.

Source

(press release)

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Opalesque Exclusive: ArbitrOption outperforms benchmarks, up 7.18% in H1[more]

    Komfie Manalo, Opalesque Asia: Independent registered advisor ArbitrOption breezed through the tumultuous Brexit referendum and outperformed its benchmarks. ArbitrOption was up 7.18% in the first half of 2016 compared to the S&P 500 which gain

  4. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  5. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New