Hedge funds have continued to do well through August, surprising some analysts. The following video is an update of the industry and how hedge fund assets have risen in August. Kenneth Heinz of Hedge Fund Research talks about the success of various strategies, how fees may be lowering and where hedge funds are investing. Newsletter subscribers can watch this video here.
Tags: hedge funds assets, assets, investing, hedge funds, hedge fund news, Kenneth Heinz of Hedge Fund Research, hedge fund assets under management, aum
Here is a video interview with Rick Steele, CEO of TechInvest. Mr. Steele runs the Intercept Capital Fund a long/short market neutral hedge fund. Within this video Mr. Steele comments on hedge funds and fund of hedge fund performance.
Tags: Hedge Fund, Hedge Funds, Alternative Investments, Australian Hedge Fund, Investments, Investing, Australia, Online hedge fund investing, web investing in hedge funds
Here is a video interview with Rick Steele, CEO of TechInvest. Mr. Steele runs the Intercept Capital Fund a long/short market neutral hedge fund. Within this video Mr. Steele comments on hedge funds and fund of hedge fund performance. If you are reading our daily email newsletter please click here to watch the video now.
Tags: Hedge Fund, Hedge Funds, Alternative Investments, Australian Hedge Fund, Investments, Investing, Australia, Online hedge fund investing, web investing in hedge funds
Below is a video on hedge funds. While parts of the video are good, generalizations are made about the industry which I do not believe are true. All hedge fund managers do not “hedge” and many are not “adventurous.” Hope this is helpful. Also, there are many more rules that hedge funds typically must follow, this video makes the process sound more simple than it really is.
Tags: family office, family offices, alternative investments, hedge fund, hedge funds, private equity, wealth management, financial planning, investing, investor resources, top 10, top 5, top 20
This video below talks about out Bull Path Capital Management and how they have converted their hedge fund into a mutual fund. While this is great free advertising for Bull Path, this is a misleading video about the hedge fund industry. We had over 100 professionals attend our hedge fund startup event in New York last week, one of the most popular articles on my website is on hedge fund startups, and last week a report showed that more hedge funds are starting right now than any other time within the past 3 years. I should have this line be the tagline of my whole blog: “I believe that hedge funds will be stronger than ever in just 3 years.”
Click on the image below to watch a video by Bloomberg on the “Demise of Hedge Funds.”
Tags: Demise of hedge funds, hedge fund, hedge funds, alternative investments, investing, investments, mutual fund, hedge fund mutual funds, long short mutual funds
Here is a great video put out by Bloomberg on how hedge funds are being started almost every day. The news caster is quoted as saying that 8 hedge funds are being started in July 2009 which will manage over $2B total. While I’m sure that this reporter is trying to stress that these are not all small hedge fund shops, I can assure you that there are far more than 18 hedge funds launching in July. Capital for these hedge funds is coming from seed capital providers, large banks and institutions looking to benefit from the cyclical nature of the markets. Many of these new funds are using managed accounts to provide banks with more transparency and less liquidity risk. If you are viewing this article via email please click here to watch the embedded video below.
I am preparing for two speeches this week, one at the Marcus Evans Fund of Hedge Funds conferences in Boca Raton on June 15th and one for the TAAAP Hedge Fund Startup Panel in New York City on June 18th. In doing so I am trying to come up with the most common or critical questions that $1M-$900M hedge fund managers have on hedge fund marketing and hedge fund startups.
I have posted a few of the most common questions I have received below, but are there 3-5 pieces of information, advice or questions which you wish would be covered at one of these two events? Is there something you would like to hear talked about more within the areas of either hedge fund marketing, raising capital or starting a new fund?
If you do have a few points which we should be covering at these events please email your comments in to Richard@HedgeFundGroup.org. Below are some of the common questions I receive which will be covered at these two events:
What is the best way to approach raising capital from wealth management firms and financial advisors?
How should we look to work with family office wealth management firms?
Investors want long track records and $100M+ in assets before investing but we cannot get there until a few try us out and help us get up to that size, what do we do?
Do you know how to obtain seed capital for our hedge fund?
What channels of investors should we invest our time in pursuing at different asset levels?
How can I tell one prime brokerage firm from the rest? We are a small fund and we don’t want to work with four different prime brokerage firms at once.
How can we get the attention of third party marketers and larger third party marketing firms to help us raise capital? Most that we speak to want $80-$100M and a 5 year plus track record before they will help us, but at that point we probably will not need their help.
Related to Hedge Fund Marketing & Startup Questions
Tags: hedge fund marketing, marketing hedge fund startups, hedge fund, hedge funds, private equity, fund management, investing, investments, capital raising, third party marketing
Below is a video on recent hedge fund developments including the closing of two Boston-based hedge funds and the re-opening of a Equity/Bond hedge fund in Europe. To view this video via our daily hedge fund email newsletter please click here.
Tags: Operational Due Diligence Analyst, Due Diligence, Analyst jobs, jobs, employment, operational due diligence, hedge fund due diligence, institutional consulting, investing
Below is an article on Brazilian hedge funds, the most under-estimated group of portfolio managers in the world. In Sao Paulo alone there are over 300 hedge fund managers and due to currency exchange rates they can remain profitable at far smaller AUM levels than a US or European hedge fund. I will be in Sao Paulo this December/January and will probably host a networking event there, let me know if you would like to come.
Here is an article excerpt about hedge funds in Brazil:
Brazil’s hedge fund industry was battered by weak performance and redemptions last year. Although overall performance has improved this year, several managers remain weak and are fighting for survival, say experts.
Up to 20 of about 100 hedge fund managers could be forced to close their funds following an exodus of clients. They have seen assets under management drop by up to 85 per cent in the past year to an average of R$75m ($37m, €27m, £23m) and are no longer profitable. source
A new trade group was recently formed to help improve the public and industry image of PIPE investments. This is needed, I have heard many professionals say that this is one of the 3-5 types of hedge fund strategies that they do not want to touch within their portfolio. Here is short article excerpt on this development:
Companies that make private investments in public equities, also known as PIPE investments, have formed a trade group to educate the public about what they do.
The Direct Funding Preservation Alliance will attempt to squelch misconceptions of PIPE investors, who have been criticized as predatory investors who take advantage of companies desperate for money. Membership will include PIPE investors and industry vendors, organizers say.
Even within the publicly maligned hedge-fund industry, PIPE funds have been looked at by some as a seedy back-alley … source
Related to The Direct Funding Preservation Alliance
Here a recent video on hedge fund performance in April 2009. If you are viewing this through our email newsletter please click here to see the embedded video below.
Here is a short video on the economy and hedge funds. Andrew Lo is one of the professionals speaking within this video, Lo is a professor at MIT and fund manager.
Within this video these professionals discuss how we are still in a recession but we are seeing glimmers of hope within the mortgage and manufacturing areas. In 2010 there may be enough momentum to pick up the economy and lift it out of the depression. This is a good video because they include professionals who consider psychology, the feeling of loss in society along with hard numbers, something not usually seen. If you are viewing this article through our daily hedge fund email newsletter please click here now to watch the embedded video below.
Tags: Andrew Lo, Economy, Investments, hedge fund, hedge funds, investing, economist, Andrew Low Interview, Fund Manager Andy Low, Professional Andrew Lo
Our team has been updating several Hedge Fund Tracker profiles over the last week. To read these news updates on specific hedge fund managers please see the following links:
I am not here as a political commentator but I do take note of the daily battering of the industry in the mainstream news outlets. Late last week and early this week I published a few posts on Obama and his blasting of hedge funds for looking out for their investors. You may read these posts here and here and here.
Today we have a hedge fund professional standing up for hedge funds in the same way I have tried to here on this blog, here is an excerpt:
Asness of AQR Capital (who says he is speaking for himself and not his company) says the hedge funds are acting as they should act. “It is the job and obligation of all investment managers, including hedge fund managers, to get their clients the most return they can. They are allowed to be charitable with their own money–and many are spectacularly so–but if they give away their clients’ money to share in the “sacrifice,” they are stealing,” he says in the letter.
Hedge funds haven’t received a bailout, Asness notes, and haven’t asked for one. “The hedge funds were singled out only because they are unpopular, not because they behaved any differently from any other ethical manager of other people’s money.” source
Related to Obama & The Dream of Socialist Hedge Funds
Below is a short video on a possible hedge fund spin out and other recent changes with major banks and hedge funds. If you are viewing this article through our daily Hedge Fund Email Newsletter please click here to see the embedded video below.
I went out to a Moroccan restaurant last night with a few investors and business professionals. The general sentiment on their side of the table was that “hedge funds are dead.” I disagreed, the number of fund startups, the need for more skilled asset management and the regulation of banks who traditionally held prop desks all point in favor of the hedge fund industry.
Embedded below is a recent video on the current hedge fund industry. The videos view of the industry is line with my own – I believe that the opportunities within the industry are greater than ever before. Assets are at low levels and many investors have very significant allocations waiting for the right managers and timing to allocate those funds. A recent survey showed that many institutional investors are wanting to soon re-allocate back into the hedge fund industry.
The video also confirms that the myth of pension funds and endowments moving away from hedge funds is false. Many endowments and foundations are not only going back to hedge funds, but they are looking to increase allocations.
Tags: Hedge Funds Are Dead, hedge fund, hedge funds, alternative investments, private equity, hedge fund performance, due diligence, investing
I went out to a Moroccan restaurant last night with a few investors and business professionals. The general sentiment on their side of the table was that “hedge funds are dead.” I disagreed, the number of fund startups, the need for more skilled asset management and the regulation of banks who traditionally held prop desks all point in favor of the hedge fund industry.
Embedded below is a recent video on the current hedge fund industry. The videos view of the industry is line with my own – I believe that the opportunities within the industry are greater than ever before. Assets are at low levels and many investors have very significant allocations waiting for the right managers and timing to allocate those funds. A recent survey showed that many institutional investors are wanting to soon re-allocate back into the hedge fund industry.
The video also confirms that the myth of pension funds and endowments moving away from hedge funds is false. Many endowments and foundations are not only going back to hedge funds, but they are looking to increase allocations.
Tags: Hedge Funds Are Dead, hedge fund, hedge funds, alternative investments, private equity, hedge fund performance, due diligence, investing
I went out to a Moroccan restaurant last night with a few investors and business professionals. The general sentiment on their side of the table was that “hedge funds are dead.” I disagreed, the number of fund startups, the need for more skilled asset management and the regulation of banks who traditionally held prop desks all point in favor of the hedge fund industry.
Embedded below is a recent video on the current hedge fund industry. The videos view of the industry is line with my own – I believe that the opportunities within the industry are greater than ever before. Assets are at low levels and many investors have very significant allocations waiting for the right managers and timing to allocate those funds. A recent survey showed that many institutional investors are wanting to soon re-allocate back into the hedge fund industry.
The video also confirms that the myth of pension funds and endowments moving away from hedge funds is false. Many endowments and foundations are not only going back to hedge funds, but they are looking to increase allocations. If you are one of the 5,000+ professionals viewing this article through our daily Hedge Fund Newsletter please click here to view the embedded video below.
Below is a short video on Banking sector earnings and fund flows within the last few months. If you are viewing this through our daily Hedge Fund Newsletter please click here to watch the embedded video below.
HedgeFundBlogger.com now hosts hundreds of free-to-watch videos on the hedge fund industry. Many of these are highlighted within our Hedge Fund Video Library. Here are links to 20 of the more popular videos from this library:
Unfortunately with current rules against hedge fund marketing or certain types of performance related announcements many hedge funds cannot report on their performance and this sometimes leads to a misunderstanding in their overall success or failure. There have been numerous reports within mainstream media regarding the performance of large hedge funds. The most notable stories have focused on the multi-billion dollar funds ran by some of the most well known professionals in the industry. Many of these funds get tagged within articles as having -25% performance, – 40% performance, etc. While this may very well be true within a few of their funds many of these large managers run 8-10 portfolios, all with $250M+ in assets. Many are able to weather these types of storms due to this built in diversification.
Here’s a short article about performance seen from some well known hedge funds: _______________________________
Hedge fund managers, after enduring the industry’s worst month in a decade, are seeking to explain to investors what went wrong and what they are doing about it.
“We clearly underestimated several things, most importantly the tsunami of redemptions that are being delivered to hedge funds as investors line up to get out of these funds as well as record outflows from equity mutual funds,” Jeffrey Gendell, who runs Greenwich, Connecticut-based Tontine Associates LLC, wrote in an Oct. 1 letter to clients.
“I am not a nervous person by nature, but should have been under the circumstances,” wrote Gendell, whose Tontine Partners LP fund plunged 59 percent in September, leaving it down 67 percent for the year, according to investors. Gendell, 49, had expected shares of steel, engineering, airline and chemical companies to appreciate because of falling oil prices. Instead they plummeted.
Hedge funds, which endeavor to make money whether markets rise or fall, lost an average of 4.7 percent in September, the biggest monthly decline since August 1998, according to data compiled by Hedge Fund Research Inc. Funds fell 17 percent this year through Oct. 9, compared with the 38 percent decline by the MSCI World Index of stocks. It was the worst performance by the lightly regulated private pools of capital since the Chicago- based firm began collecting data. Read more…
Tags: large hedge funds, large hedge funds in New York, Largest hedge funds, hedge fund, hedge funds, stock market, investments, investing, large hedge fund, list of large hedge funds
