It Is About Convergence…
The convergence of all parts of the investment management industry is something that I have been writing about and talking about for the last few years. I believe that within a few years, there will no longer be things called hedge funds, mutual funds and private equity funds, but rather just different types of funds. Some funds will go short, some will go long and short, others will just go long and another group will invest solely in illiquid investments. The time for this convergence is now, when many private equity firms, hedge fund firms and mutual fund firms are launching new products, exploring new strategies and developing new distribution […]
It is clearly not over.
Just when you thought they were out, they pulled investors back in. According to recent data from HFR, hedge funds had a great month in January, beating equities and delivering significant positive returns. Just a month ago, the media were asking if hedge fund managers still had it after performance in 2013 did not match the broad market index. The industry, according to these experts, was in big trouble. Wrong again! Comparing investments that go long and short the market to investments that only go long is like, well, comparing apples to oranges. Simply put, if managers are hedging, then they should not beat the market in an up year. […]