Did Morningstar Just Make The Case For Hedge Fund Replication?20210920153300

Did Morningstar Just Make The Case For Hedge Fund Replication?

September 20, 2021Research,
Photo by Javier Allegue Barros on Unsplash Morningstar recently published two comprehensive reports that should be required reading for anyone interested in the liquid alternatives space.  The 2021 Global Liquid Alternatives Landscape tackles the difficult experience of most investors in the space d...
How Hedge Funds Became The New Fixed Income Substitute20210908051816

How Hedge Funds Became The New Fixed Income Substitute

Photo by Brett Jordan on Unsplash Almost overnight, allocators started to swap out fixed income exposure for hedge funds.  What’s driving this?  Two trends:  after large and sudden drawdowns in both 2020 and 2021, many allocators simply want out of traditional fixed income; meanwhile, with alpha bac...
Wrestling with the Hedge Fund paradox20210611155650

Wrestling with the Hedge Fund paradox

Absolut Alternative, a German periodical focused on institutional investors, asked DBi to write a comprehensive history of the liquid alternative space. This is the English version of an article titled, Herausforderung Hedgefunds-Paradoxon, that was published in May 2021.The twenty year effort to cr...
With Inflation on the Horizon, How Can Retail Investors Protect Themselves?20210223092038

With Inflation on the Horizon, How Can Retail Investors Protect Themselves?

Managed Futures Strategies Might Hold the KeyPhoto by Alexander Schimmeck on UnsplashLegendary macro investor Stan Druckenmiller recently laid out a scenario where 4-5% inflation in the near term is possible or maybe even probable.[1]  Fiscal stimulus, the “biggest increase in pent up demand gl...
Dusting Off Graham and Dodd? Hedge Funds Say the Value Rotation is Real20210112155847

Dusting Off Graham and Dodd? Hedge Funds Say the Value Rotation is Real

Have hedge funds bought into to the much-discussed value factor rotation that began in the Fall? The short answer is yes, in a big way.Strategies that replicate portfolios of hedge funds using factor models can determine how hedge funds are positioned today across major equity markets, and how those...
Hedge Funds Are Back!20201130122213

Hedge Funds Are Back!

November 30, 2020Research,
Pundits love to beat up on hedge funds these days.  The glory days are long gone, they argue, and investors should stick to low cost, passive investments like the S&P 500.  For nearly every fund that proved its mettle during March, another two imploded.  H...
The Case For Replication Of Equity Long/Short Hedge Funds20200106115405

The Case For Replication Of Equity Long/Short Hedge Funds

January 6, 2020Research,
In the wealth management space, many allocators are confronted with a dilemma: The Case for Replication of ELS Hedge Funds_CA  ...
The Case For Replication Of Managed Futures Hedge Funds20191205095358

The Case For Replication Of Managed Futures Hedge Funds

Factor-based replication of managed futureshedge funds may solve the two principal issues with investing in the space.First, replication of a portfolio of funds provides diversification of singlemanager risk, a serious issue when there is a 30% or more dispersion among topand bottom managers each ye...
Trend-Following Index Managers Have So Far Failed to Replicate Managed Futures’ Performance20191121133911

Trend-Following Index Managers Have So Far Failed to Replicate Managed Futures’ Performance

November 21, 2019Research
The evidence that investors can reliably replicate managed futures' performance with low cost, trend-based indices is scant. To read more, click here ...
Understanding The Key Landmines In Liquid Alternatives20191004143610

Understanding The Key Landmines In Liquid Alternatives

October 4, 2019Research
A version of this first appeared in Absolute Return hereInvestors are understandably frustrated with liquid alternatives. The average liquid alternative fund has underperformed its hedge fund brethren by around 200 bps per annum, which is meaningful when hedge funds themselves have been delivering m...
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