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Investor redemptions from hedge funds in October outpaced new allocations for the second consecutive month resulting in a slight net outflow of USD2.9 billion (only 0.10% of AUM), according to eVestment.
The industry has not had two consecutive months of outflow since the wake of the 2012 edition of the European sovereign crisis.
Investor sentiment towards equity-focused hedge funds was negative for the second consecutive month October, confirming a deviation from the positive trend which had been in place the preceding 14 months. October redemptions appear more related to elevated losses in June and July, rather than due to
Although much maligned for sub-par performance since the dot-com crash, venture capital returns for more recent funds have picked up significantly – one-year horizon returns are among the best in the entire private equity industry. Preqin’s latest special report examines the drivers of this recent success, and uncovers the impact of improved performance on LP attitudes towards the asset class and the prospects for future fundraising.
Following a rapid reversal of fortunes at the turn of the millennium, the venture capital industry has experienced largely lacklustre returns which have led to tough fundraising conditions for all but a select group
Hedge funds lost 0.11% in October, according to the Barclay Hedge Fund Index compiled by BarclayHedge. After ten months in 2014 the Index is up 2.87%.
“Continued easing by the ECB and the BOJ as the Federal Reserve wound down its bond purchases, the unraveling of crowded trades in Abbvie/Shire and Fannie/Freddie and S&P 500 earnings exceeding expectations propelled risk asset prices sharply lower in the first half of the month, only to recoup those losses by month’s end," says Sol Waksman, founder and president of BarclayHedge. “At mid-month the S&P 500 was down by 5.6 percent, but managed to
Investors’ devotion to Alpha is hindering investment success, says State Street research
Investment professionals are failing to deliver alpha and investors are failing to achieve their long-term goals, according to new research published today by State Street’s think-tank, the Center for Applied Research.
The research, titled “The Folklore of Finance: How Beliefs and Behaviours Sabotage Success in the Investment Management Industry” explores the concept of investment success and the impact of common beliefs and biases within the investment management industry.
While more than 60 percent of the industry’s capital is spent on the pursuit of alpha, a growing skepticism has
Irving H Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L Madoff Investment Securities LLC (BLMIS), is seeking approval of a recovery agreement with Senator Fund SPC, a Cayman Islands incorporated investment fund invested exclusively with BLMIS.
Under the terms of the recovery agreement, the settlement will benefit the BLMIS Customer Fund by USD95 million. Approval of the Senator agreement is pending with the United States Bankruptcy Court. In addition, a recovery agreement of approximately USD497 million, reached between the SIPA Trustee and the Herald/Primeo feeder funds, is also pending approval with the Bankruptcy Court. Once
Columbia Management and Blackstone Alternative Asset Management (BAAM) are to research and develop investment solutions that leverage Columbia’s asset management capabilities and Blackstone’s hedge fund solutions business.
Columbia has considerable experience in asset allocation and alternative investing, with Jeff Knight, Global Head of Investment Solutions and Asset Allocation, and William Landes, PhD, Deputy Head of Global Investment Solutions, leading the company’s efforts to develop and manage compelling products and solutions for its clients.
Columbia’s expertise in asset allocation, equity and fixed-income investment management, and sub-advisory selection capabilities offers investors a powerful opportunity to help meet their specific needs. The addition
By Simon Broch, AlphaDealing – Arguably, the Trading Desk is at the heart of the investment manager. Why then do so many new start-ups not invest in a dedicated trading desk?
The answer is twofold. Usually, the start-up PM underestimates the skillset required, believing they can give simply give orders themselves, although they will overpay on commission and often receive questionable execution. This is a form of outsourcing the trades, but at an exceptionally high frictional cost per trade.
The second reason, is cost. A manager on a 2/20 fee structure has a lot of expenses to pay in
Alternative investments specialist Midwest Wealth Management has launched a new Proprietary Trading Platform.
The platform utilizes advanced mathematical analysis that’s based on 16 unique risk-based and account objective models to help determine what we feel is the optimal time to purchase stock. This competitive analysis gives Midwest Wealth Management the ability to be opportunistic and highly reactive to market movements in specific securities when choosing investments for clients.
Leveraging algorithmic methodology and tracking for all current and future potential holdings also enables Midwest Wealth Management to obtain a selected execution price for clients without significantly affecting or increasing purchasing
BDO CRI (Cayman) Ltd, the Principal Liquidators of Herald Fund SPC, have reached a global settlement agreement with Irving H Picard, Trustee for the Estate of Bernard L Madoff Investment Securities.
The Principal Liquidators were assisted by their US and Cayman Islands legal counsel (respectively, Kirkland & Ellis LLP: led by partners Joseph Serino and David Flugman; and Walkers: led by partner Matthew Goucke).
The settlement agreement, which was made public today in New York through a filing with the US Bankruptcy Court for the Southern District of New York, achieves an allowed customer claim for Herald in the
Over the next three years, 77 per cent of pension funds expect their appetite for investment risk to increase to enable them to meet long-term liabilities and deliver optimal value for members.
That’s according to a new report from State Street, which also reveals that one in five (20 per cent) of the asset owners surveyed expect their risk appetite to increase significantly during this period.
As part of this shift, pension funds intend to increase their exposure to alternatives. Some 60 per cent intend to increase their exposure to private equity, with the corresponding figures for real
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