Stimulus Hopes Boosted Risky Bets
The impact of hope upon markets was spread unequally, but active bets of hedge funds proved mostly positive.
Beta First, Alpha Second
View Newsletter Emboldened by dramatic monetary and fiscal stimulus, global equities rebounded strongly in the second quarter on hopes of a V-shaped economic recovery. Despite lingering economic worries, the S&P 500’s 20.1% surge was the biggest quarterly gain since 1998, while MSCI Emerging Markets’ 18.1% jump was its largest since 2009. However, neither fully recovered […]
Breaking Bad: Better Call Hedge Funds?
In today’s uncertain environment, Callan examined how hedge funds are positioned to potentially help investors. We see four key opportunities…
1Q20 Hedge Fund Update: Breaking Bad, Creating Good Opportunities
Although some hedge funds enjoyed net gains from their short positions and macro hedges, most suffered notable losses, primarily due to unrealized mark-to-market valuations
Alphas of the Pack–Follow the Leader?
Click Here for Jim’s White Paper For institutional investors, widely cited hedge fund indices such as the HFRI Fund Weighted Composite reflect a universe dominated by funds that are too small, too beta-driven, or otherwise not worth considering for scalable diversifying solutions. Furthermore, many larger, more alpha-focused funds choose not to report to a subscription […]
How Hedge Funds and MACs Did in 4Q19
View PDF Twenty years ago, U.S. stock prices were hitting record highs with nosebleed valuations based on a strong economy supported by rising corporate earnings and increasing productivity. Treasury bills then were yielding almost 5% (or 2% real), as the Federal Reserve was slowly taking away the market’s punch bowl by raising rates. Meanwhile, a […]
Macro Shines; Equity Alpha Shaded
View PDF With fears of softening manufacturing hanging over global equity markets, particularly in Asia and Europe, many central banks actively cut rates to allay economic concerns in the third quarter. Falling yields for sovereign debt and higher-rated credits also helped to soothe concern about the prolonged trade battle between the U.S. and China. Regional […]
Going for Gold: A Prescient Move or a Fool’s Errand?
Read Jim’s Paper Few investments elicit as visceral a response from investors as gold. As perhaps gold’s most notable skeptic, Warren Buffett observes that gold “doesn’t do anything but sit there and look at you.” Stocks are more productive assets, he maintains. Fearful of high stock prices or runaway inflation, advocates view gold as a […]
Co-Investments: Opening Doors of Opportunity
Co-investing with hedge funds is a chance for institutional investors to enhance returns while reducing overall fees
Hot Markets Go Cold Turkey
In chilling markets, the mix of volatile prices and tightening liquidity became too hot for many hedge funds to handle. And beset by negative betas in both traditional and alternative markets, all of the Callan Multi-Asset Class (MAC) Style Groups struggled in the fourth quarter’s risk-off mode.