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Komfie Manalo, Opalesque Asia: Investors are considering greater investment in emerging hedge fund
managers in reaction to the recent underperformance of many blue-chip
hedge funds versus historical returns, claimed a new paper by Worth Venture Partners titled
Accessing Emerging Hedge Fund Returns – Seeking Return Over
Size as part of its series of commentaries, Worthy Insights.
Worth Venture is an emerging manager hedge fund platform headquartered
in Manhattan.
The paper said that the increase in emerging manager allocations,
notably from institutional investors, originates from a desire to source
sustainable alpha. This paper shines a light on current options for
investors wishing to execute in this fertile part of the hedge fund
universe.
Abby Flamholz, partner and co-founder of Worth, commented, "Academic
research, supported by a number of studies, reinforces the expected
premium of emerging hedge fund manager investing." The paper documents
emerging manager outperformance of 1.7-2.2% per year, over various time
horizons and particularly during periods of financial stress.
Flamholz continued, "In order to efficiently capture the return premium,
closer monitoring is often warranted. External oversight when investing
in smaller managers can add an elevated level of risk management. Recent
innovation in the methods of monitoring has resulted in cost efficient
solutions, providing c...................... To view our full article Click here
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