Tue, May 26, 2015
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. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  2. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  3. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  4. Investing - Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds, Hedge funds buy Actavis, Valeant. ETFs join the party, The most loved biotechs of big hedge funds, Stocks to buy ... according to hedge funds, Atlantic City bond offering attracts hedge funds as buyers, Okumus Fund Management discloses huge new Ascent Capital Group stake[more]

    Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds From Boingboing.com: When a giant hedge fund is bidding on all the foreclosed houses in a poor neighborhood, living humans don't stand a chance -- but that's OK, because rapacious investors make great landl

  5. Institutions - Institutional investors turn to real estate, planes, Assets at Boston’s five biggest family nonprofits rise to $3.5bn[more]

    Institutional investors turn to real estate, planes From Joins.com: The National Pension Service and domestic emerging market specialists who did not know where to invest in a low interest rate environment are turning to other investments like the blue-chip real estate market abroad.

 

banner