News Worth Reading: September 30, 2016

There’s always great information out there if you know where to look. The following comprises our list of news worth reading from the past week.

Hedge Funds

  • Hedge funds are slashing fees left and right to retain clients (reuters)
  • Julian Robertson hates everything (businessinsider)
  • Goodbye, Perry Capital (ft)

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Hedge Funds Weekly: September 26, 2016

The following is an excerpt from our Hedge Funds Weekly report, which is available in the clients section. If you are not yet a client, please request access.

Highlights

  • Our factor-based projections estimate that hedge funds added 0.65% last week as worldwide equity strength lifted returns
  • Hedge funds are now up 0.65% for the month and 3.36% for the year
  • All but one of the 30 hedge fund strategies we track earned positive returns
  • Every one of our global benchmarks gained last week as risk was well-rewarded in all major asset classes
  • Equities rose in all sectors and regions, but gains were more pronounced in foreign markets
  • In fixed income markets, foreign government bonds outperformed in absolute return, while U.S. inflation-linked bonds led in risk-adjusted return
  • Most alternative commodity factors gained, including term structure, trend following and medium-term momentum
  • Currency carry and momentum factors rose as foreign currencies appreciated against the dollar
  • All of our short volatility and variance factors rose, with our short VIX futures strategy leading the way
  • Trend following and momentum performance varied by asset class, but was generally positive
  • We currently estimate that hedge funds returned 0.46% in August, 0.41% more than our initial projection of 0.05%

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News Worth Reading: September 23, 2016

There’s always great information out there if you know where to look. The following comprises our list of news worth reading from the past week.

Hedge Funds

  • Small allocations to alternatives aren’t going to move your portfolio’s needle (longboardfunds)
  • Nearly half of hedge fund investors feel like its getting harder to find attractive opportunities (preqin)
  • Blue chip hedge funds are underperforming lesser known funds this year (efinancialnews)
  • Only about 35% of hedge funds still charge 2 and 20 (finalternatives)
  • Don’t feel bad for struggling hedge funds (bloomberg)
  • The SEC charged Leon Cooperman, CEO of Omega Advisors, with insider trading (businessinsider)

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Hedge Funds Weekly: September 19, 2016

The following is an excerpt from our Hedge Funds Weekly report, which is available in the clients section. If you are not yet a client, please request access.

Highlights

  • Our factor-based projections estimate that hedge funds fell 0.17% last week as foreign equity losses overwhelmed gains from other factors
  • Hedge funds are now flat for the month and up 2.60% for the year
  • Only six of the 30 hedge fund strategies we track earned positive returns
  • Outside of U.S. equities, most asset classes produced losses last week
  • Equities rose in the U.S., but fell abroad leading to net negative global returns
  • Short-dated U.S. Treasuries eked out small gains, but most fixed income vehicles worldwide dropped
  • Energy and base metal losses led our broad commodity index to a negative return
  • Currency carry and value factors declined moderately as foreign currencies depreciated against the dollar
  • Most of our short volatility and variance factors rose, led by our U.S. put writing strategy
  • Trend following and momentum performance varied by asset class, but was generally negative
  • We currently estimate that hedge funds returned 0.37% in August, 0.32% more than our initial projection of 0.05%

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News Worth Reading: September 16, 2016

There’s always great information out there if you know where to look. The following comprises our list of news worth reading from the past week.

Hedge Funds

  • Hedge funds are increasingly offering clawbacks and cutting fees to retain investors (ft)
  • Bridgewater is raking in new capital even as its flagship fund struggles (ft)

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Hedge Funds Weekly: September 12, 2016

The following is an excerpt from our Hedge Funds Weekly report, which is available in the clients section. If you are not yet a client, please request access.

Highlights

  • Our factor-based projections estimate that hedge funds fell 0.16% last week as U.S. equity declines stifled returns
  • Hedge funds are now up 0.10% for the month and 2.58% for the year
  • Only eight of the 30 hedge fund strategies we track earned positive returns
  • Commodities rose last week, but most investors couldn’t escape losses as both stocks and bonds fell globally
  • Equities fell worldwide, but the U.S. bore the largest losses as most sectors declined
  • Bonds also declined globally, with the largest losses again in the United States
  • Energy gains helped propel our broad commodity index to a positive return
  • Currency momentum strategies rose while carry and value factors generated modest, mixed performance
  • Nearly all of our short volatility and variance factors fell, with our buy write index producing the largest loss
  • Trend following and momentum performance varied widely by asset class
  • We currently estimate that hedge funds returned 0.26% in August, 0.21% more than our initial projection of 0.05%

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News Worth Reading: September 9, 2016

There’s always great information out there if you know where to look. The following comprises our list of news worth reading from the past week.

Hedge Funds

  • The alternative investment universe is getting too big for investors to handle (finalternatives)
  • Alternative beta funds are a lower cost, viable substitute for traditional hedge funds (hedgeweek)
  • Family offices have been slashing hedge fund exposure (bloomberg)
  • Barron’s ranks the 100 best performing hedge funds over the last three years (barrons)

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Hedge Funds Weekly: September 5, 2016

The following is an excerpt from our Hedge Funds Weekly report, which is available in the clients section. If you are not yet a client, please request access.

Highlights

  • Our factor-based projections estimate that hedge funds added 0.17% last week as diversified factor performance led to modest gains
  • Hedge funds are now up 0.28% for the month and 2.82% for the year
  • 23 of the 30 hedge fund strategies we track earned positive returns
  • Aside from commodities and foreign developed market government bonds, most asset classes were up for the week
  • Equities notched modest gains domestically, but posted mixed results overseas
  • Government bonds rose in the U.S., but fell internationally, particularly in developed markets
  • The energy complex struggled once again as oil produced sizeable losses
  • Currency momentum strategies declined materially and foreign currencies underperformed the dollar
  • All of our short volatility and variance factors rose, led by our VIX term structure strategy
  • Outside of equities, trend following and momentum strategies tended to produce gains both within and across asset classes

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News Worth Reading: September 2, 2016

There’s always great information out there if you know where to look. The following comprises our list of news worth reading from the past week.

Hedge Funds

  • Investors are really unhappy with activist hedge funds (bloomberg)
  • How Netflix spawned a quant bromance (bloomberg)
  • After years of struggles, private equity giant Carlyle is close to abandoning its hedge funds (ft)
  • Leda Braga’s BlueCrest is officially a behemoth, despite its modest returns (efinancialnews)

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Hedge Funds Monthly: August 2016

The following is an excerpt from our Hedge Funds Monthly report, which is available in the clients section. If you are not yet a client, please request access.

Highlights

  • Our factor-based estimates project that hedge funds added 0.05% in August as alpha losses negated gains from equities
  • Hedge funds are now up 2.26% for the year
  • All but six of the 30 hedge fund strategies we track earned positive returns
  • Diversified portfolios produced muted returns despite large moves in commodities, REITs and defensive equity sectors
  • Equities surged in Emerging Asian markets, but earned modest returns elsewhere
  • Developed market government bonds finished down, but corporate securities rose
  • Alternative commodity strategies, such as momentum, trend following and term structure, declined significantly
  • Currency carry strategies gained but momentum strategies fell
  • All of our short volatility and variance factors rose, led by our VIX term structure strategy
  • Trend following and momentum strategies tended to produce losses both within and across asset classes
  • Hedge funds returned 1.59% in July, 0.02% more than our initial projection of 1.57%

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