Alpha Mail - A monthly email update from AllAboutAlpha.com
Dear Alpha Mail Subscriber:
 
Every post-apocalyptic sci-fi movie seems to have at least one scene when the dazed and confused survivors of some calamity re-emerge from their shelters and marvel over the fact that they have survived such devastation.  
In many ways, this scene seems to sum up the hedge fund industry in January.  Some have even begun to describe the history of hedge funds as being divided between the "pre-Madoff" times (1,590 Google results) and the "post-Madoff" times (1,970 Google results).
But it's apparently not yet the "end of..." times for hedge funds.  Numbers released last month show a relatively bad year - but not the debacle that people such as George Soros have predicted (75% of hedge funds gone).
The year is still young.  But some hopeful signs are beginning to emerge.  And who knows, the global march toward compulsory hedge fund registration might provide a necessary foundation for re-building investor trust and the tarnished image of the hedge fund industry.
Last month's top 10 most popular posts contain several articles about rebirth and revival in this "PM" era.
Last Month's Most Popular Posts 
 
  1. Jaeger predicts year of alternative beta, the death of "black boxes". Advocates "scenario based" portfolio construction: In this guest post, Lars Jaeger, one of the early advocates of hedge funds and a recent proponent of alternative beta, argues that 2009 may prove his point.
  2. Academic study finds hedge funds more likely to sail into the sunset than go down in blaze of glory: Once again, the facts get in the way of salacious headlines about hedge funds "blowing up" all over the place.  
  3. Survivors to Benefit from "Hedge Fund Industry Life Cycle": In this guest post, Tommaso Sanzin of Hermes BPK says that hedge fund growth is dependent on "manager capacity" and "market capacity."    
  4. Let The Data Set You Free: Final 2008 numbers on the hedge fund industry look pretty boring - as in, no calamitous crash.    
  5. 2009: The year of the high water mark: Hedge fund fees are on their way down, but not because of pressure from investors.  With a majority of funds underwater, performance fees have disappeared from many funds.  
  6. Anatomy of a hedge fund fraud (not the one you're thinking of): Turns out Bernie Madoff wasn't the first hedge fund manager to allegedly make stuff up.  This fascinating case study from a decade ago has some interesting similarities.
  7. Post-Madoff HF Investors: Some stop, some go, and some start their own funds: Believe it or not, some institutions aren't just staying invested in hedge funds; they're actually launching their own. 
  8. Is an MBA an asset or a liability when the axe falls at hedge funds?: A recent survey found that MBA's make less than non-MBAs.  That's too bad for them - until the pink slips start to fly.
  9. Predicting alpha: Not that hard after all finds new study: One academic checks out some nifty measures of active management but finds that old-fashioned r-squared actually does pretty well.
  10. Ponzipalooza: Ponzi schemes. Suddenly they're all the rage.  Why fully explain complex frauds in the media when you can just Ponzify them?  It's absolutely Ponzi-rific! 
That's the kind of month it's been.  So if you have just emerged from your bomb shelter, know this: others have survived!  You can rebuild!  As the lead actress in the Will Smith post-apocalyse movie "I am Legend" says right before the film's closing credits:
"There are survivors...keep your radio on.  Listen for our broadcasts.  You are not alone.  There is hope." 
  
Happy Alpha Hunting, 
 
Christopher Holt, Editor
AllAboutAlpha.com
[email protected]
 


Tuesday, February 3, 2009
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