Reducing the Risk from Adding Stock Exposure
Adding other sources of diversification could significantly reduce the risk from increasing stock exposure, our research suggests.
read moreIs It Time to Get Back into Stocks—or Too Late?
After five years of fleeing stocks for the perceived safety of bonds, US mutual fund investors became net buyers of stock funds in January. While some see the return of the retail investor as a negative indicator for stocks, we say, “Better late than never.”
read moreHow Much Hedge Fund Exposure Makes Sense?
Our research suggests that a well-diversified allocation to hedge funds might improve portfolio returns, but their greatest benefit is the risk reduction that comes from their low correlation to stocks. Here’s why.
read moreHedge Funds: Identifying Alpha and Mitigating Risk
Hedge funds have historically generated higher returns than stocks with less volatility, but they also pose several significant risks that volatility alone doesn’t capture, our research suggests. That makes careful due diligence and diversification of managers crucial.
read moreRooting Out Biases in Hedge-Fund Data
In a recent article, I discussed the conclusions about hedge fund’s historical returns and risk we reached after rooting out biases in the data available. Here’s how we sought to eliminate those biases.
read moreHedge Funds: Separating Fact from Hype
It’s easy to understand the allure of hedge funds—and the fear they inspire. After conducting rigorous research aimed at separating fact from hype, we have concluded that hedge funds historically have had an attractive risk/return profile.
read moreAllocating to Hedge Funds Should Be a Two-Step Process
The experience of two bear markets in the past decade reminded investors of the importance of diversification. This, coupled no doubt with some envy of the “endowment model” of the likes of Yale and Harvard universities, has caused many to increase their allocation to hedge funds. While this often makes sense, we think it’s important [...]
read moreWhy Hedge Funds Did Poorly in 2011
Much has been said about the poor performance of hedge funds in 2011. Here’s why we don’t believe this undermines the case for hedge funds.
read moreArchives by Month:
- December 2012 (16)
- December 2011 (12)
- November 2012 (8)
- November 2011 (14)
- October 2012 (20)
- October 2011 (17)
- September 2012 (10)
- August 2012 (17)
- July 2012 (15)
- June 2012 (16)
- May 2013 (2)
- May 2012 (13)
- April 2013 (10)
- April 2012 (8)
- March 2013 (23)
- March 2012 (12)
- February 2013 (19)
- February 2012 (10)
- January 2013 (20)
- January 2012 (11)