A spotlight on hedge funds
A roundup of recent institutional investors’ hedge fund activity.
Fees kill alpha from hedge funds
Many hedge fund portfolios perform well before costs but fall into negative alpha after charges are levied, Canadian firm CEM Benchmarking’s analysis of nearly 400 large investors has found.
CalPERS seeks ideal pay formula
The $350 billion CalPERS is under time pressure to find the right formula on compensation – competitive but not an incentive for excessive risk – as key investment roles remain vacant.
MSCI will be patient with A-Shares
Reports are that the inclusion of 226 Chinese large caps in the Emerging Markets Index has gone well. Small-cap and mid-cap shares could follow if concerns about suspensions prove unfounded.
The logic against investing in handguns
There is a rational basis for not putting assets into handgun producers but emotions and politics cloud the issue. Judging the case on facts and figures, not dogma, makes the choice clear.
Australia’s QIC gets real about risk
As the era of double-digit returns winds down, Jim Christensen, head of the $65 billion Queensland Government-owned firm, is having the hard conversations with clients about expectations.
