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Dear Alpha Mail Subscriber:
The past month seems to have taken on a "quant" feel at AllAboutAlpha.com. The number one most-read post was one about an interesting observation by Moody's that low hedge fund returns tend to accompany large jumps in the VIX. Quantitative approaches to reproducing hedge fund returns weaved their way into our interview with one leading provider of "hedge fund replication." And our "live blogging" of Battle of the Quants also made the top 10 list.
Funds of funds were also on our minds. Recent research has suggested that the reported death of this strategy may have been a little premature. Another story that flew in the face of conventional wisdom last month was one on how high water marks amount to a form of self-administered lock-in (#9), as investors stick around for the performance fee holiday that follows a major drawdown.
One of our editors' favorites last month was a piece on a study examining the "sophistication" of institutional investors. Despite advances in portfolio management and optimization, it's amazing how many investors still arbitrarily pick "60/40" allocations. There will always be comfort in round numbers, we suppose.
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| Last Month's Most Popular Posts |
- Who said hedge funds don't like chaos?
A report from Moody's shows that hedge funds seem to hate volatility. But is this always true?
- What up with the Hedge Funds of Funds Index last year? Theories abound.
It can be said that the best way to gauge the average performance of hedge funds is to look at an index of FoFs, not an index of hedge funds themselves.
- Examining "Real Alpha" and "Exotic Beta" in mutual funds
Usually the term "exotic beta" is associated with hedge funds. Finally, it's being applied to the largest pool of active management - mutual funds.
- 7 Questions for Adam Patti, CEO of IndexIQ
Patti's new venture brings ETFs to the alternative realm via a distinct replication methodology seeking to offer exposure to the return profiles of a number of hedge fund indices. Is this the wave of the future?
- Global macro trend is your friend, alternative investors say
The latest quarterly survey of alternatives investors from Brighton House Associates is chock full of good news. So what's the bad news?
- Live Blogging "Battle of the Quants"
We report live from the annual New York edition of the "Battle of Quants."
- What exactly is a "sophisticated" investor anyway?
How can you tell if a pension fund is "sophisticated"? Apparently, it may not be that tough...
- Islamic finance as an alternative investment
If the concept of interest is central to traditional notions of investing, then Islamic finance is about as alternative as it gets.
- High Water Marks: The other hedge fund "lock-in"
An academic study finds that the presence of a high water mark can induce the kind of loyalty usually forced upon investors with redemption gates.
- Elephant in the Room: Washington's giant hedge fund.
Strain really hard and the IMF's recent announcements on commodities and gold almost appear as if they're talking up the markets ahead of deploying some sort of massive carry trade.
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It was a real pleasure to meet so many of you at recent industry events such as GAIM Ops ( coverage), Battle of the Quants ( coverage) and GAIM USA.
CAIA and AllAboutAlpha.com will be on the road a lot this spring. I'm in California this week meeting with CAIA members and prospective members. If you are interested in learning more about the Chartered Alternative Investment Analyst (CAIA) Designation, click here and join us in LA on Thursday night.
If you are in Asia, you might want to check out Fund Forum Asia in mid-April. I will be co-chairing the event and CAIA's Hong Kong chapter will be hosting a reception for members and guests in the wings of the conference.
Also in Mid-April, CAIA and the CFA Institute are co-hosting an education event in London called "Alternatives are Dead! Long Live Alternatives!" It promises to be a comprehensive run down of everything from regulation to behavioral finance.
If you are interested in Brazil (and you probably should be), then you also might want to take note of the Brazil Investment Summit later in April. It looks to be one of the biggest gatherings of Brazilian institutional and alternative investors in history. Once again, CAIA is participating in this event, and your humble scribe will be moderating a panel or two.
Finally, CAIA will be playing a key role in the London edition of the Global Absolute Return Congress in May. If my voice is still intact, I'll be co-chairing that event once again. This year, organizers have lined up the former Prime Ministers of the UK and Canada to address geopolitical and macro-economic issues. More on that one next month.
Hope to see you at these events or during CAIA's many member/candidate events around them.
Until next month...
Happy Alpha Hunting,
Christopher Holt, Managing Editor
AllAboutAlpha.com
editor@allaboutalpha.com
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