Decomposing FoHF returns
Where and when funds of hedge funds add and lose value
Read More
18/03/2010
Editor's view: 18 March 2010
Inexorably sliding down the graph paper, like Alice in her rabbit hole, the sustained collapse of equity markets hit something solid just over a year ago. Since then, the climb back has been equally sustained, producing stellar returns for equity-focused strategies over the course of 2009.
Nothing is certain about 2010 – disappointing growth and shaky projections may even augur a double-dip – but it is clear that equity strategies have made a good start to the year. To
prolong this vein though, funds must resist the temptations of the past and not revert to the ‘long-only in disguise’ strategies that so damaged the industry in 2008.
After a year of plenty, the funds that HFMWeek spoke to this week are avoiding this temptation. Concentrating on careful stock-picking, or recalibrating funds to take account of more volatility,
mangers seem to be preparing for heavier weather, as they conservatively change net exposure, going long in large caps, or ponder the launch of new market neutral vehicles.
In a week of anniversaries – not only the equity rally, but also the arrival of the first internet address, presaging the boom, then bust, of dotcom start-ups – it’s worth pointing out that HFMWeek’s own campaign against the draft AIFM Directive is approaching its first birthday. A date rather tarnished by the well-covered return of draconian marketing stipulations.
Still, the campaign continues, and we have been encouraged this week by the doubling of UK Treasury efforts – although these have rather been derailed by European criticism of Britain’s deficit – and the written expression of concern by US Treasury Secretary Timothy Geithner.
American involvement hardly represents a cavalry charge, but, after a period of fairly low-key and ineffectual behind-the-scenes lobbying, it is good to know that the White House is willing to step up the pressure. And justifiably so. If the EU’s draft goes through in its current form we will all be living in the sort of topsy-turvy Carrollian world where European pensions will struggle to access the best performing US funds.
- Share
-
Text Size
Decrease text size
Increase text size
What's in a name? Petra Capital Management
Formed in 2005, New York-based Petra Capital Management soon forged itself a reputation as one of the hedge fund industry’s best-known investors in the commercial mortgage-backed securities (CMBS) market.
Founder Andy Stone, an expert in real-estate debt from his time at Solomon Brothers and Credit Suisse First Boston, would even go on to be described as a ‘rock star’ in the field. His choice of moniker for his hedge fund project certainly lends itself to Stone’s background – and more than just in name and reputation.
Petra is, of course, a historically and archaeologically significant city in Jordan, renowned for its architecture cut into the rock face of its central valley. The rock-carved collection of tombs, temples and waterways is one of Jordan’s most famous symbols and tourist attractions, not to mention a regular in popular culture – featuring in films such as Indiana Jones and the Last Crusade. Unesco, which made the city a World Heritage Site in 1985, described it as “one of the most precious cultural properties of man’s cultural heritage”. Most pertinently though, Petra actually means ‘stone’ in Arabic.
Not quite the force he once was, Stone suffered a…
Former Harvard Management Company duo set up maiden hedge fund manager
Steve Alperin and Sara Fleiss, previously of Harvard Management Company, have set up their maiden hedge fund manager, HFMWeek has learned.
HFMWeek Daily Snapshot - 10 February
Today: Hedge fund outflows hit record low; Trafigura hedge fund targets $3bn by year-end; SEC to Consider Settlement With Ex-Bear Stearns’ Managers; Och-Ziff Net Income Drops 94% as Performance Fees Decline; and more...
EXCLUSIVE: Texas County commits $305m to fresh hedge fund hires
The Texas County & District Retirement System (TCDRS), which has $17.7bn in assets, has allocated $305m between two hedge funds, two months after making an extra $885m available to the space, HFMWeek can exclusively reveal.
Investor demand for CTAs is on the rise, says Agecroft Partners
Agecroft Partners is seeing widespread demand from institutional investors for Commodity Trading Advisors (CTAs), which is a dramatic change from the historical reluctance of many institutional investors and their consultants to allocate to this strategy.
Read More29/02/2012
UK: Open Protocol: The Challenge and Opportunities of Standardising Hedge Fund Risk Reporting
Join us and our panel of experts for HFMWeek's Subscribers' Club February's UK breakfast briefing…
29/02/2012
US: Endowments and Foundations in Hedge Funds
The next US HFMWeek Subscribers' Club breakfast, will take place on Wednesday February 29. Join…
02/02/2011
European Hedge Fund Services Awards 2012
HFMWeek's European Hedge Fund Services Awards are designed to recognise companies that have outperformed...
Be the first to comment on this article!