ALTERNATIVE INVESTMENTS

This hot-off-the-press revised version (March 30) of The ABCs of Hedge Funds, which decomposes returns into three components – systematic market exposure (beta), value-added by hedge funds (alpha), and hedge fund fees (costs) -  includes data up to the end of December 2009. Among other things it finds the universe [...]

This research examines hedge funds’ exposures to various financial and macroeconomic risk factors with the results indicating a positive and significant link between default premium beta and future hedge fund returns as well as a negative and signfiicant link between inflation beta and futureu hedge fund returns.

This paper from the Neuberger Berman fund of hedge funds team analyses the near-term prospects of distressed investing and volatility arbitrage, offers observations on the importance of managing the beta profiles of long and short positions within long/short equity portfolios, and explores the effects of reduced competition on hedge fund [...]

Preqin has canvassed public pension funds and other investors in the US to examine the specific effects of the SEC’s proposed rules relating to the introduction of the Advisers Act Rule 206(4)-5, on the private equity industry. The report includes key statistics on the use of  placement agents, the importance [...]

New research of hedge funds managers by Preqin shows it is clear the idea of a ’2 and 20′ fee structure is outdated and, although less succinct, a more accurate reflection would be a “1.63 and 17.21″ formula.