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!
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
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
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...
Should Fundamental Investors Own Managed Futures Today?20190909174403
Should Fundamental Investors Own Managed Futures Today?
Like most of you, I am a fundamental investor at heart. I started my career in the hedge fund business working for famed value investor Seth Klarman (whose book, Margin of Safety, is treasured by those lucky enough to have a copy). The lessons of intrinsic value stuck. I am also a believer that mark...
Rethinking Managed Futures in a Low Fee World20190708012104
Rethinking Managed Futures in a Low Fee World
Managed futures as a strategy (before high hedge fund fees) has delivered strong performance since 2000 – higher returns than equities with far lower volatility. As a diversifier, managed futures offer more “bang for the buck” than bonds, commodities and REITS. These results are obscured by excessiv...
The practitioner’s guide to investing in managed futures20190619052608
The practitioner’s guide to investing in managed futures
Plenty of white papers extoll the diversification benefits of investing in managed futures strategies. Those papers principally highlight long-term statistical benefits: low correlation to traditional asset classes and strong historical performance during down equity markets. Add managed futures ...