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Open Protocol: Comparing Apples to Apples

Red and green apples

Evaluating the risks of a large cap value portfolio against those of another has long been a relatively easy exercise for investors. However, evaluating the risks of an absolute return-oriented risk premia fund versus those of a relative value multi-strategy hedge fund is not, even though they can have the same stated investment objective.Investors who […]

Bear Market Ahead? Beware of the ‘False Charge’

Bear

View PDF When I was a Boy Scout backpacking in the Sierras, my troop assigned shifts of scouts at night to watch for marauding bears on the perimeter. To scare them off, the sentry clanged a pot or made some raucous noise. That simple response seemed to work fine—the fourfooted opportunist, however hungry, usually got […]

Dollops of Alpha with Beta

Eye microscope in hospital laboratory

Behold the power of positive thinking. The U.S. economy moved steadily forward with revived animal spirits in the first quarter. That provided the Fed the ammunition to raise short-term rates by 25 basis points, with more increases expected in the rest of 2017. In the euro zone, tangible evidence of growth and inflation emerged, while […]

The Hedge Fund Edge: Still Sharp or Too Dull?

View PDF Why should investors bother with hedge funds? The original proposition behind them was their promise of differentiated performance: better risk-adjusted returns with a lower correlation to traditional capital markets. However, recent history suggests that the current generation of hedge funds lacks the edge of its predecessors. Do hedge funds still have an inherent […]

Alternative Facts and the Evolving Role of Hedge Funds

Download PDF Hedge funds have faced a difficult stretch, underperforming less-expensive alternatives for years. However, as lightly regulated managers with few investment constraints, hedge funds have a distinct advantage over traditional investments such as mutual funds. For this quarter’s Fiduciary Perspectives essay, “Alternative Facts and the Evolving Role of Hedge Funds,” I reflect on the current market environment affecting […]