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Dear Alpha Mail Subscriber:

 

As I wrote in our May 16th post, running a daily blog isn't for the faint of heart.  It can be a relentless venture that requires a peculiar mix of respect for the reader's intellect and irreverence toward the mainstream media that tries to feed it; a passion for the subject and a willingness to raise uncomfortable questions about it; and a somewhat technical adroitness delivered in a colloquial style. 

 

For the past few months we've been looking for someone like this to take over the reins at AllAboutAlpha.com.  I'm now pleased to report that we've hit the jackpot.  Starting this week, Kristin Fox will be taking over my duties as Managing Editor of AllAboutAlpha.com (see press release).  You may recognize Kristin's name, as she comes with a top-drawer pedigree that includes senior roles at HedgeWorld, Pensions & Investments and HFR.

 

I'll be staying on as a weekly columnist while I focus on other initiatives at our parent organization, the Chartered Alternative Investment Analyst ("CAIA") Association. 

 

Okay, enough about us.  Last month's top 10 list contains several must-read posts about alpha:  "Fiduciary alpha", "Crisis alpha", and the "Supply and Demand Curves for Alpha".  We covered a fascinating study on the "evolution" of hedge funds current problems and their financial motivations.  And we touched on illiquid investments, commodities, and, of course, hedge funds.  

Last Month's Most Popular Posts 
  1. Note to migrating ducks: Watch your flight path
    Predictable patterns are easy game for hedge funds.

  2. The Interaction of Demand and Supply Curves for Alpha
    If only the marketplace for alpha fit neatly into a model from an Economics textbook.

  3. Fiduciary Alpha
    Fiduciaries think of a client's needs before their own - sacrificing the latter if required. But does the requirement for a hedge fund manager to put their client's interests before their own help or hinder the search for alpha? It depends on who you ask.  

  4. An evolutionary view of hedge funds' "fundamental problems"
    Sometimes it helps to look back on the history and evolution of hedge funds for clues about how to solve today's challenges.  

  5. "Crisis Alpha"
    Some types of alpha have a sting in the tail: they hibernate or head south when tail risks appear, while other types of alpha thrive on panics. Crisis alpha is about celebrating low Sharpe ratios, and looking beyond price volatility to gauge risk.  

  6. Study: University endowments really are smarter investors!
    The University of Texas endowment recently revealed that it had nearly $1 billion of gold hidden away in their basement. This might be a good time to revisit whether US endowments are really that smart.  
  7.  
  8. Performance-based compensation: Does size really matter?
    A new academic paper suggests managers open and close their funds to new investments to keep performance up - and to keep fees flowing in. We wonder whether hedge fund champion John Paulson would agree.

  9. Downward-sloping security market line: a sign the end is nigh?
    A new research paper by the brainiacs at Dutch institutional investment manager Robeco shows that not only don't high-vol stocks outperform low-vol stocks, but they actually underperform them.  

  10. Is gold the silver bullet for pension deficits?
    There are some pensions who're sure, all that glitters is gold. And they're trying to make hay in twenty-eleven...  

  11. Turn that tap off! The search for illiquid investments is on...
    It's getting easier to lead an institutional manager to illiquid strategies - not water - according to a recent survey by eVestment Alliance and Casey Quirk. But after what happened in 2008, why would they drink?

I'll be in New York next Thursday attending an event hosted by the New York Hedge Fund Roundtable and featuring Mark Yusko of Morgan Creek Capital.  Our friends at that organization have graciously invited New York CAIA members to attend and have invited me to introduce CAIA to their members. I hope to see some of you then.

  
If you live in Toronto and you work for a pension, endowment or family office, you'll definitely want to check out the Niagara Institutional Dialogue June 13-15 in Niagara-on-the-Lake, Ontario (it's free if you wrangle an invitation).  I'll be serving as master of ceremonies for this symposium for Canadian institutional investors.
  
Finally, if you're a Financial Advisor in the Chicago area, I'd suggest you check out Financial Advisor Magazine's Second Annual Innovative Alternative Strategies Conference June 21-22. The CAIA Association is pleased to support all of these educational events.  
  
So ends the 55th edition of "Alpha Mail."  To those among our 10,000 subscribers who have been with us since our text-email days, thank you for you loyalty.  Here's to the next 55 editions!
  
Kristin, over to you...
  
Sincerely,
  
Chris
  
Christopher Holt
(Past) Managing Editor
AllAboutAlpha.com
May 23, 2011

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