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.
The $71.9 billion Mass PRIM pores over the numbers to be sure it pays active managers only for skill. That's just one way it uses intense analysis to deliver.
Hiro Mizuno, CIO of the world's largest investor, told the CFA conference that in exchange for multi-year commitments its mandates would now claw back fees when firms don't reach alpha targets.
Asset owners are lowering return targets, shrinking active long-only allocations and getting tough on fees as harsh outlooks persist, the annual Top1000funds.com/Casey Quirk survey reveals.
When the £16 billion BBC Pension Scheme started moving away from active listed strategies, it was time to rethink its interactions with external managers, starting with a few key questions.
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