Perfectly said!
Hedge funds promise alpha, but the big names play a different game — maximizing AUM, not returns. The real opportunity lies in: - Specialist managers with unique strategies. - Small, nimble teams free from legacy burdens. - Technology that amplifies returns while lowering costs. Alpha isn’t dead. You just need to look in the right places.
Generating "Alpha" i.e. the returns uncorrelated with the broader market is challenging, especially with the advent of Smart Beta with long-term investment in passive assets that track and replicate the performance of broader market indices. Counterintuitively, Portable Alpha, a strategy of generating alpha returns combining beta itself is gaining traction these days. Our research at Dirac Alpha shows that it can be further enhanced by diversifying across indices (for example, S&P 500, QQQ, Dow), sectors (XLE, XLC, XLF, and Value, vs Growth in general), geographies (Developed vs Emerging economies), and by adjusting for volatility and trading frequencies (Long term, mid-term, and high frequency) with different weights (Equal or Value weighted).
Partner at Akin, Investment Management | Hedge Funds | Private Credit | Private Equity
Portable Alpha is a strategy that seems to be regaining traction in the hedge fund space. The concept: (1) an alpha source provides uncorrelated returns to investors (e.g., via an allocation to a market-neutral equity long/short or merger arb/event-driven fund), and that investment is overlaid with (2) a beta source that tracks a benchmark, typically via derivatives (e.g., S&P 500 futures). We’ve seen a few larger, multi-strat firms offering this as one product flavor to a larger audience, but more typically this is provided as an SMA or other customized solution tailored to an investor’s preferences.
While offering promising opportunities, hedge funds also carry unique risks. Read more: https://lnkd.in/ejne59Ue Post written by Steven Brod, Forbes Councils Member.
This piece by Robert Stock, PhD is must-read for hedge funds and asset managers: https://lnkd.in/geuuQAXX Why? Imagine there was an efficient, systematic way to piggyback on the best ideas by informed traders (ie, not having to buy lots of data sets or have a team of analysts comb through reports). In the piece, he goes through the process of building and testing an equity long-short portfolio as a starting point, using a Sentiment family of factors in a risk model plus an optimizer.
https://lnkd.in/gxBZ7HRJ Bored with the same old returns? Get to know the secret strategies that hedge funds use to make profits above the market. This video reveals investment techniques in full, along with analysis examples that will make you see new opportunities!
Forbes has just released its latest insights into the top-performing hedge funds of the year, highlighting exceptional strategies and investment prowess. The article delves into the strategies that have propelled these funds to success amidst evolving market conditions, showcasing their ability to navigate challenges and capitalize on opportunities. Discover which hedge funds made the prestigious list and explore the innovative approaches they've employed to deliver outstanding returns. Whether you're an investor seeking inspiration or simply interested in the dynamics of financial markets, this Forbes article offers valuable perspectives. Check out the full article here for an exclusive look at the top hedge funds shaping the future of investment: https://lnkd.in/e6K4U2cF Branded Hospitality Ventures #HedgeFunds #InvestmentStrategies #FinancialMarkets #Investing #venturecapital Elizabeth Humphrey Laura Brusca Amy Feldman Alex Konrad Bridgewater Associates Renaissance Technologies LLC Two Sigma AQR Capital Management Maritza DaSilva John Brooks Klingenbeck Colin Beirne Amar Doshi Sachin Nagpal Dusan Perovic Gerret Van Duyne
Launching a hedge fund is about more than strategy, it's about building strong operations. This whitepaper explores the benefits of outsourcing operations as a means to a smooth fund launch or a leap to the next level and emphasizes the importance of choosing an administrator that can support the firm’s growth over the long term. SS&C provides new and emerging managers with boutique services and best-in-class technology to fuel growth. Learn more in our new whitepaper here: https://ow.ly/sNot30sJEiH hashtag#Fintech
Institutional Portfolio Management For Business Owners, Senior Executives & Nonprofit Organizations
Hedge funds - what are they & should you invest in them? These investment vehicles are limited partnerships & are not actively traded on the stock market. Hedge funds also employ leverage to buy additional shares of a position. Now you need to be careful when leveraging your portfolio b/c that sword cuts both ways. However, when hedge funds are included within a stock & bond portfolio, the overall risk of the portfolio usually goes down. Contact me via the form in my bio with any questions & please Like & Share this video. Thanks 🙏🏻
Launching a hedge fund is about more than strategy, it's about building strong operations. This whitepaper explores the benefits of outsourcing operations as a means to a smooth fund launch or a leap to the next level and emphasizes the importance of choosing an administrator that can support the firm’s growth over the long term. SS&C provides new and emerging managers with boutique services and best-in-class technology to fuel growth. Learn more in our new whitepaper here: https://ow.ly/fy3X30sJHRA hashtag#Fintech
Guide to starting a U.S. hedge fund: covers investment strategies, legal compliance, challenges, and actionable insights.
