Editor’s note: The hedge fund industry faces tough times. In September, Financial Poise reported that an increasing number of America’s biggest pension funds and endowments complained about fees and underperformance. Bloomberg weighed in on the same issue last week. Below, Caroline Rasmussen of the alternative investment platform iCapital Network explains why she believes investors still need […]
A recent Q2 NEPC Foundation and Endowment Poll reported that some foundations and endowments are re-evaluating or reducing their allocations to hedge funds.
We speak with Todd Ryden, CEO of FNEX, a growing online alternative investor marketplace. FNEX brings accredited investors together with curated sellers of private placement equity interests, managed futures, secondary private securities, and interests in hedge funds and private equity funds.
Hedge Fund methods with Mutual Fund daily liquidity? In Episode 72, we spoke of Liquid Alternatives with Pete Hecht, Managing Director of Evanston Capital Management. Mr. Hecht urged investors to reject hype and to measure performance net of fees that can be attributed to such strategies.
A fairly recent special report from Preqin, a data and intelligence provider for the alternative asset industry, found that liquid alternative investment products outperformed alternative investment managers, such as hedge funds in 2014.
In Episode 35 of Accredited Investor Markets host Chris Cahill will speaks with Sang Lee, founder and CEO of DarcMatter, about how his company’s online platform enables accredited investors to invest in hedge funds and private equity groups notwithstanding investment minimums such entities require.
In Episode 24 of Accredited Investor Markets Radio, Brendan Ross of Direct Lending Investments and host Chris Cahill discuss how Direct Lending Investments’ fund pools high-yielding, 6-18 month business notes and what approaches may help diversify and mitigate risks in the pool. Mr. Ross also comments on peer-to-peer lending in general, including how, and why, the investment method attracts borrowers once served by community banks. Additionally, the discussion touches on what the consequences may be for P2P in a new period of severe financial distress.
Hedge Fund Research (HFR), Inc., reported in April that hedge fund assets surged to a new record in the first quarter of 2014 (click here for more details). Global hedge fund capital increased to $2.7 trillion, the seventh consecutive quarterly record, as investors allocated $26.3 billion of new capital to the industry, according to HFR. As the HFR report shows, investors continue to see the value of hedge fund investing.
If there were a rock star in the alternative investment industry, hedge funds would be a strong contender for the label. With stories of breakout funds consistently beating the stock market, sky rocketing returns of mythical proportions, the epic crashing and burning of hedge fund managers living life on the edge, and the aggressive, passionate pursuit of wealth, hedge funds seem to attract many who seek a rapid rise to fortune and glory. However, the potential ‘wow factor’ doesn’t negate the fine print for investing in hedge funds, which holds the potential to be the snag that unravels the whole sweater.
A hedge fund can invest in almost any opportunity, in any market, where it foresees potential profits at low risk. While hedge fund strategies vary enormously, most hedge against market downturns and, indeed, the primary purpose of most hedge funds is to reduce volatility and risk while attempting to preserve capital and deliver positive returns under all market conditions.