Tue, Jun 30, 2026
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Monitoring is never enough, being invested is the ultimate test with hedge funds

Thursday, March 30, 2017

Komfie Manalo, Opalesque Asia:

As clicheed as it may be, investors should make sure to only invest in strategies that they understand, said Cedrick Kohler, head of advisory at Fundana at the recent Opalesque 2017 Gulf Roundtable.

Kohler said that he often encounters non-investment professionals on investment committees, including doctors or teachers seeking advice on a strategy: "Every time we propose a strategy, we try to start with relatively simple ones that people can really get a real understanding on. This could be equity long/short for example as opposed to statistical arbitrage or relative value fixed income. The latter can be relatively difficult for people to grasp at first."

While making sure investors understand the sources of returns for example is crucial, Kohler emphasized that "monitoring is never enough. Being invested is the ultimate test."

In addition, the appropriate sizing of the hedge fund / alternative investment allocation is paramount. "It's one thing to have someone explain a strategy to you in a meeting room with a powerpoint presentation, it's another to experience actual investments. So, we recommend to start small, even if your goal is to have a much bigger allocation later on, so you can make sure you understand the performance in different market conditions. Our experience i......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Nvidia extraordinary growth and the challenge of sustaining demanding valuations over time[more]

    Antonio Di Giacomo, Senior Market Analyst at XS.com, writes: Nvidia has established itself as one of the most extraordinary growth companies in the global technology sector. Over the past two fiscal years, its revenues have risen from levels close to $60 billion annually to well above $120 billi

  2. Secondaries take center stage: What the 2026 PE landscape means for GPs and investors[more]

    Matthias Knab, Opalesque for New Managers: The 2026 edition of Dechert's Global Private Equity Outlook - "Signs of a Gradual Thaw" - marks a notable shift in industry sentiment. After years of compr

  3. And, finally: Time to share it with the people[more]

    From Newsoftheweird: Leavenworth, Washington, has become a tourist destination because of the Bavarian theme businesses have adopted there, NPR reported. One shop, the Leavenworth Nutcracker Museum, houses the world's largest nutcracker collection, thanks to 101-year-old Arlene Wagner. Wagner sta

  4. Opalesque Exclusive: Private Markets Evergreen Funds - An Insider's View[more]

    Matthias Knab, Opalesque for New Managers: Private Markets Evergreen Funds: What Investors Need to Know Before They Dive In The democratization of private markets is well underway. Structural barriers t

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m