Editor's view: 29 July 2010
Like Paris in the spring, the lure of the Ucits space is proving a heady experience for many managers. First Europe fell for the charms of these onshore products, now the Americans are joining in a communal swoon.
24/02/2010
New research paper shows the benefits of activism
If you’re still in doubt whether activist investors like Carl Icahn and William Ackman actually improve the lot of investors in their funds, and enhance shareholder value in the companies they target, take a look at the recent research issued by three students at Columbia and Duke University.
Comparisons on the role of activism by pension and mutual funds versus hedge funds have been around for many years; a slightly unfair comparison considering the regulatory hindrances on mutual/pension funds.
Nonetheless, activist hedge funds have been found to outperform the overall market and other types of equity-oriented hedge funds, according to the paper’s authors, Alon Brav, Wei Jang and Hyunseob Kim, who cite past research.
But the returns don’t come cheap. The cost of an activist campaign averages $10.5m, one-third of the average gross deal return.
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Comment: Amy B Hirsch
"It is imperative that investors of all types ensure they understand the relationship between the introducing party and the manager"
Investors sit tight on impaired assets
Playing the ‘what if’ game can be fun but, depending on the number of variables in question, it can get a little out of control. Apply this conceit to the hedge fund sector's performance during the financial crisis and the possible permutations become legion.
Hedge fund inflows in Q2
Hedge inflows have slowed as volatile markets made sitting on the sidelines the safest option in Q2. According to figures from HFR, the quarter’s $9.5bn - a 30% drop from Q1’s $14bn – reflected the 'wait and see' policy of many investors as the HFRI Fund Weighted Composite dropped -2.5%. With nerves setting in, recent predictions of a boom of interest in the alpha potential of smaller managers also fell flat, with the lion’s share of money going to large $5bn-plus managers.
Read MoreFunds of hedge funds fall out of favour
A growing number of institutional investors are now opting to invest directly into hedge funds instead of allocating to the space via funds of hedge funds.
Read More
22/09/2010
UK: Ucits IV
This month’s HFMWeek Subscriber Club breakfast will take place on Wednesday 22 September. Join us and…
30/09/2010
US: topic to be confirmed
The next HFMWeek Subscriber Club breakfast will take place on Thursday 30 September. Topic and…
19/07/10
HFM Week US Performance Awards
Following the success of the last year’s HFM US Hedge Fund Performance Awards we...
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