Considering The Benefits of Global Macro Alpha
The market turmoil to kick off ‘25 has many investors considering adding diversifying strategies to those traditional 60/40 portfolios that have done well in recent years. As we scan the universe of under appreciated diversifying strategies, Global Macro alpha stands out as one of the most compelling complements for many portfolios.
Perspectives on Portfolio Randomness and Asset Allocation
Active allocation strategies struggle to outperform a randomly selected portfolio of funds on a long-term basis. The data indicates that in pursuit of outperformance allocators may even be making riskier decisions.
4Q 2024 Unlimited Hedge Fund Barometer
4Q 24 Hedge Fund Strategy Performance, Gross of Fees Summary Commentary Hedge Fund performance in 4Q24 was modestly positive with many Event Driven and Global Macro managers benefitting from positioning favoring Trump’s election in November while Emerging Market managers saw declines particularly as the hoped-for Chinese stimulus failed to materialize. Heading into ’25, fund managers […]
Curb Your Enthusiasm
Expectations for the US economy coming into a new year have not been this high in quite some time and Asset markets have fully priced in this exuberance.
Long Time Allocators Remember When Fund Picking Worked, But It Is Possible Those Days Are In The Rearview
Published by Bob Elliott and Nathan Nangia on November 12, 2024 We’ve written several pieces about hedge fund persistence and the potential benefits of hedge fund indexation over the last few years (Elusive Persistence). Our conclusion is random chance is approximately as effective as allocators’ at selecting a hedge fund portfolio. The research supports that […]
3Q 2024 Unlimited Hedge Fund Barometer
Report Highlights 3Q 2024 Hedge Fund Strategy Performance, Gross of Fees Commentary Hedge Fund performance in the third quarter was moderately positive, with Emerging Markets managers delivering 5% returns supported by a rally in Chinese assets at the end of the quarter. Long/Short Equity and Event Driven managers rode through the turmoil during the quarter […]
Indexing Can Outperform Searching For Tail Risk Alpha
As this cycle becomes long in the tooth, many allocators are evaluating whether their portfolios may be underweight managers that perform well during turbulent market environments.
Elusive Persistence
Last year, we wrote a piece evaluating hedge funds’ performance persistence and its implications on allocators’ ability to select managers. Our conclusion was straightforward: individual hedge fund manager outperformance is not persistent relative to the overall Hedge Fund index. Therefore, a randomly selected portfolio of funds would perform as well as an allocators’.
2Q 2024 Unlimited Hedge Fund Barometer
Hedge Fund performance in the second quarter was modestly positive across most hedge fund strategies, with Managed Futures and Global Macro managers notably delivering weak returns as market and economic trends oscillated quickly from March to April to May.
1Q 2024 Unlimited Hedge Fund Barometer
Hedge Fund performance in the first quarter was the best in more than 3 years, driven by an unusual combination of…