New research of hedge funds managers by Preqin shows it is clear the idea of a ‘2 and 20’ fee structure is outdated and, although less succinct, a more accurate reflection would be a “1.63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.
Research
Does ‘2 and 20’ still exist?
Research
GIC, Temasek eye trillions of growth in climate adaptation market
Singapore’s two largest asset owners, GIC and Temasek, see attractive opportunities in climate adaptation solutions – a relatively underfunded area compared to decarbonisation. The former has already made selective adaptation investments and said the opportunity set across public and private debt and equity could increase to $9 trillion by 2050.
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Research suggests global diversification works… eventually
An article written by AQR Capital Management colleagues, Cliff Asness, Roni Israelov, and John Liew, International Diversification Works (Eventually) was selected the best article in the prestigious Graham and Dodd Awards, a CFA Institute program honoring the top Financial Analysts Journal articles of 2011. It finds that despite the many critics of diversification, global portfolio
Does risk-based strategy diversification work?
This MSCI research note looks at the historical behaviour of two risk-based investment strategies and investigates their potential application in an institutional equity portfolio. Does risk-based strategy diversification work?mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
Enhanced estimates generate improvement in hedge funds
EDHEC-Risk Institute has conducted research looking at an application of the improved estimators for higher order co-moment parameters as they apply to the optimisation of hedge fund portfolios.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
Systematic risk and the cross-section of hedge fund returns
This paper investigates the extent to which market risk, residual risk, and tail risk explain the cross sectional dispersion in hedge fund returns. The paper introduces a comprehensive measure of systematic risk (SR) for individual hedge funds by breaking up total risk into systematic and fund specific or residual risk components.
Growth in China wind and solar energy to slow
China’s 12th Five Year Plan sets out ambitious goals for de-carbonizing China’s electricity supply. The plan emphasises a large-scale expansion of renewable and low-carbon electricity energy sources.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
Risk-based dynamic asset allocation
This paper proposes a unique dynamic portfolio construction framework that improves portfolio performance by adjusting asset allocation in accordance with a forecast market risk. It finds that modifying asset allocation to the market risk barometer offers investors the “promising opportunity” to meaningfully enhance portfolio performance across market environments. To access the paper click below
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