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Alternative Market Briefing

Ineichen Research publishes report focused on absolute returns

Thursday, April 22, 2010

Alexander Ineichen, ex-UBS head of research, and now founder of Ineichen Research and Management as well as Senior Advisor to Prime Capital in Frankfurt, wrote a comprehensive report focused on the alternative investments industry. It is the first report produced by his company.

In it, he presents several ideas focused on topics such as: the term "absolute return", a post-post-modern portfolio theory (with a common-sense assumption about investors), asset raising, regulations and politics for hedge funds now, the trust that the hedge fund industry is gaining back, and financial crises on the Richter Scale.

Absolute returns: clarification The term "absolute returns" has been battered as well as misused by business and politics alike. We aim to clarify. The term stands for an investment philosophy that stands in stark contrast to financial orthodoxy. And that's a good thing.

Market heterogeneity with moderately leveraged financial institutions reduces systemic risk. Market homogeneity with excessively leveraged institutions doesn't.

After challenging some "axioms" of financial orthodoxy, we introduce PPMPT (Post-post-modern portfolio theory) as an alternative to mean-variance optimization... Full press release: Source

Opalesque Note: The full report may be accessed here:......................

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