Largest Funds Power Through 2011
Largest Funds Power Through 2011
The alternative investment landscape became bigger, broader and bulkier in 2011. It became bigger because the total reported assets under management (AUM) of single-manager hedge funds and funds of hedge funds (FoHFs) increased by 3.37% from the previous year to a total of $2.245 trillion; broader because the total number of funds reporting increased to 13,395 (3.73% year-over-year growth); and bulkier because the reported number of billion-dollar-plus hedge funds and FoHFs expanded in rank.
“Sizing the 2011 Hedge Fund Universe: A PerTrac Study,” now in its 9th edition, revealed that 322 single-manager hedge…
Read the full post >Bringing Daily Data (and the Cloud) to PerTrac Analytics
We are excited to announce the latest release of PerTrac Analytics (7.2.2) which includes a greatly enhanced, cloud-based data distribution process for our clients. The initial catalyst for this change was multiple client requests for daily mutual fund performance data feeds. As anyone involved in the analytics space knows, the demands placed on analytical systems by daily data are more than 20x greater than monthly data. Daily database files are extremely large and require new processes for conversion, storage, speed and scalability. The result is a new, cloud-based data distribution process for PerTrac Analytics that provides our clients with increased database…
Read the full post >Buoyant January
Buoyant January, fabulous first week of February…will the alternative beat go on?
European hedge fund stars profit in buoyant January
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Instant-History Bias
It is perhaps time to admit that eliminating the instant-history bias is arguably as much an art as it is a science
Instant-history bias occurs when funds decide to incubate (i.e., develop a track record) for some time before openly reporting their returns to industry databases. When funds do decide to report, they report their complete history since inception, thus resulting in an ‘instant-history.’ The bias comes into existence because only funds that have a solid track record will decide to report results to databases, whereas funds that have undergone a poor performance run are likely to keep their returns silent…
A New Non-Normal World
Expectations for all of us to produce solid returns are high these days and many pension plans and endowments are craving 7.5% performance returns at a minimum in order to cover their liabilities. We are all painfully aware that much is on the line these days as the beneficiaries of these return dollars are our parents and our children. And if we fall short then it will be our children who will carry the burden of our inadequacy.
It is tough to find solid performance returns, especially today’s volatile environment – it’s both an art and a science. …
Read the full post >Does the Seasonal Performance Anomaly known as ‘’Sell in May and Go Away” Apply to Hedge Funds?
There is an old, rather pessimistic adage around stock exchanges that goes, “Sell in May and go away.” This proverb forewarns investors to get out of the markets before summer begins. Why? Because equity performance will suffer in the next few months; because the next few months will be filled with vacation goers whose investing segment will empty their portfolios of stocks in order to achieve a more carefree summertime experience.
“But remember to come back in September,” goes the popular British clincher to the saying. In the US, however, the end of October is more fitting because…
Read the full post >If Being Small Is Such A Return Advantage, Why Don't Small Funds Attract More Capital?
Since publishing our report: Impact of Fund Size and Age on Hedge Fund Performance last week, we’ve been asked repeatedly, “What happens when you look at fund size and age together?” We decided to take a look.
The following chart shows that while small funds produce a higher return regardless of their age, age does not seem to help them increase their AUM. Is the answer that they are simply too small at under $100 million for institutional investors to allocate to them. Or, are institutional investors following the big legend myth – “big is always better when…
Read the full post >The Hedge Fund Advantage: Young and Nimble
America is a culture that idolizes our youth. We attribute many advantages to being young, especially health. But, we don't idolize those that are young in the hedge fund industry. We equate them to adolescents. Like our teenagers they must be learning, assuming more risk, cost more, and return less. Right? Perhaps not.
Youth in Hedge Funds appears to be a positive attribute, providing the highest performance returns and surprisingly the lowest risk. It seems that wealth in the hedge fund industry as measured by performance returns goes to the young as well. Yes, they are mostly small in AUM,…
Read the full post >Welcome to the PerTrac Blog
Today, we are pleased to announce the launch of the PerTrac Blog. We’ll be using the blog as a vehicle to interact with our customers as well as the larger community of investment professionals. On the PerTrac Blog, you will be able to read about our latest research and insights, you will hear our opinions on the market, and you’ll be able to voice your opinions back. You will have the opportunity to engage with our product team and learn about the ways we are innovating in the investment management space. We’re excited about what lies ahead and welcome you along…
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