•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

From Kirsten Bischoff, Opalesque New York:

With 80% of hedge fund redemptions flowing through fund of hedge funds (even after positive performance in the first quarter of 2009), this sector of the hedge fund industry is facing an uphill battle to get back into the good graces of investors. Liquidity issues plaguing the global financial markets have had an exaggerated effect on fund of hedge funds due to their inherent delay in reaction time because they form an outer ring within the hedge fund industry.

"If you ask any fund of hedge funds or investor in hedge funds, the biggest issue today is liquidity," Michael Markov, CEO of Summit-NJ based investment research firm Markov Processes International told Opalesque. "Anything that will address this issue is at the top of their interest."

Closing the gap on reaction time The challenge of improving investors' insight into hedge funds performance intra-month led to the Wednesday release of a research paper titled "Monitoring Daily Hedge Fund Performance When Only Monthly Data is Available". Markov and his co-authors Daniel Li, Quantitative Analyst, MPI; and Russ Wermers, Associate Professor of Finance at University of Maryland's Smith School of Business have released the paper (which is still a work in progress) earlier than expected, so that investors considering allocating to the hedge fund industry are made aware at the potential for transparency in such......................

To view our full article Click here