Hedge Funds

Mark Anson Discusses Asset Allocation Strategy with Bloomberg Markets

Posted by Commonfund on Aug 28, 2017

Topic: Asset Allocation | Hedge Funds | Investment Strategy | Private Capital

Mark Anson, Commonfund chief investment officer, discusses his asset allocation strategy with Bloomberg's Vonnie Quinn and Simone Foxman on "Bloomberg Markets." (Source: Bloomberg)

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Hedge Fund Land:
An Expensive Amusement Park?

Posted by Mark J.P. Anson on Aug 16, 2017

Topic: Asset Allocation | Hedge Funds | Industry Knowledge | Investment Strategy

In a series of articles, we have addressed two recent investment “fatigues” experienced by institutional investors: Active vs. Passive; and Global (ACWI) vs. US benchmarks. In this article, we tackle the third and last “fatigue”— Hedge Funds. Hedge funds have come under extreme criticism lately for their expensive fee structure, lack of performance, and too much “beta” wrapped up in an “alpha” fee structure. It appears that hedge funds are run more for the amusement of the hedge fund manager and less for the benefit of the hedge fund’s clients. These are all legitimate concerns but we still believe that there is value to be found in Hedge Fund Land.

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What do the Cable Television and Hedge Fund Industries Have in Common?

Posted by David Scarozza on Feb 28, 2017

Topic: Asset Allocation | Hedge Funds | Investment Strategy | Risk Management

These industries may seem an odd pairing, but both are in the midst of a disruption-led, industry-wide rationalization process. The two industries share in common a historically evolved “bundling” price structure, heavily favoring the sellers, that is breaking down due to the recent proliferation of distribution alternatives. This is giving consumers the option to be far more choosey about the prices they are willing to pay for varying levels of content.

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Hedge Fund Strategies 2.0

Posted by Caroline Greer, Kristofer Kwait on Oct 10, 2016

Topic: Asset Allocation | Hedge Funds | Investment Strategy

The old mantra of using hedge funds for downside protection and upside participation hasn't worked. During this webcast, we examine the why and the how of hedge funds - why invest in them and how to invest in them effectively within institutional portfolios.

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Unhedged Commentary:
The $3 Trillion Question

Posted by Mark J.P. Anson, Ryan Driscoll on May 5, 2016

Topic: Hedge Funds | Investment Strategy

The growth of the hedge fund industry over the past decade has been tremendous, with more and more institutional and retail investors allocating capital to investment strategies that fall outside the boundaries of traditional stock and bond funds.

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Hedge Funds:
How Many (or Few) Does it Take?

Posted by John Delano, Kristofer Kwait on Apr 8, 2016

Topic: Hedge Funds

Hedge Funds: How Many (or Few) Does it Take? It’s straightforward to get an answer to that question, at least superficially: draw at random from a manager universe, build hypothetical portfolios with the selected managers, track performance, repeat thousands of times, and based on the average result, arrive at an optimal portfolio size.

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Size: It’s Complicated

Posted by John Delano, Kristofer Kwait on Jan 14, 2016

Topic: Hedge Funds | Investment Strategy

AUM among hedge funds has always been characteristically top-heavy, with the majority of capital in the hands of a relatively small number of managers. While the hedge fund universe has expanded from a few hundred in the mid-1990s to several thousand today, investors have voted in large numbers for what amounts to a handful of those managers.

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Global Economic & Investment Outlook:
2016 – A Year of Transition

Posted by Commonfund on Jan 4, 2016

Topic: Asset Allocation | Equities | Fixed Income | Hedge Funds | Market Commentary | Private Capital

Our 2016 Global Economic and Investment Outlook provides a detailed look at our expectations and portfolio positioning going forward.

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Hedge Funds: An Instructional Look

Posted by Commonfund on Dec 4, 2015

Topic: Asset Allocation | Hedge Funds

Hedge funds often account for the largest share of institutions’ allocation to alternative investment strategies yet, hedge fund strategies can be difficult to understand. We have created a reference guide that will be useful when considering hedge funds in your portfolios.

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Manager Spotlight | York Capital Management

Posted by Commonfund on Jun 26, 2015

Topic: Hedge Funds | Industry Knowledge

Manager Spotlight | York Capital Management | Masahiko "Masa" Yamaguchi Co-Portfolio Manager of Asian Opportunities and Event-Driven UCITS funds

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New Commonfund Hedge Fund Whitepaper “Chasing Winners: The Appeal and the Risk”

Posted by Commonfund on Aug 27, 2014

Topic: Hedge Funds

The paper shows that many hedge fund managers have benefited from outsized gains due to the extended broad market rise. Investors are often influenced strongly to select those hedge fund managers that have produced outsized recent performance. However, this strategy can work against investors in the long run since it is implicitly based on the manager’s ability to track market movements across investment environments -- even though evidence for this ability within the manager universe is not robust.

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Smart money, crowded trades?

Posted by John Delano, Kristofer Kwait on Aug 17, 2014

Topic: Hedge Funds | Industry Knowledge

Approaches to stock selection vary widely across the hedge fund universe, even among managers practicing the same strategy. Valuation, potential catalysts, time horizons and technical factors based on price history all influence decisions to own a stock, both in terms of names and position sizing and hedging. A name that is attractive to one manager may leave another unmoved, or escape consideration altogether.

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Chasing Winners: The Appeal and the Risk

Posted by John Delano, Kristofer Kwait on Aug 6, 2014

Topic: Asset Allocation | Hedge Funds | Investment Strategy

For investors selecting managers to hire, the draw of managers that have produced outsized recent winners can be powerful. While such a strategy can work in the long-term, this strategy is implicitly based on the manager’s ability to track market movements across investment environments.

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Subscribe and Manage Your Frequency to Insights Blog

Posted by Commonfund on Jan 5, 2014

Topic: Asset Allocation | Equities | Fixed Income | Governance and Policy | Hedge Funds | Industry Knowledge | Market Commentary | Operating Assets | Outsourced Investing | People | Private Capital | Responsible Investing | Risk Management

Subscribe to the Insights Blog from Commonfund to stay informed with the latest information for nonprofit investors and the public sector.

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