Free Cash Flow: An Upgrade to Management Reporting Feb17

Posted by & filed under Hedge Fund Performance, White Papers/ Thought Pieces.

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The general connection between a company’s profits and its stock price is well established. However, both over the short and long run, that degree of connection is not as robust as investors might hope. Clearly, many factors influence individual stock prices: dividends, revenues, and balance sheets among the obvious. While generally the case, these other metrics do not necessarily move in lock step with profits, particularly over shorter horizons. Still, most studies show that profits are the most influential of these factors on stock prices

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Blue Chip Investing: Exploiting the Rise of Passive Index Funds Jan13

Posted by & filed under Hedge Fund Performance, White Papers/ Thought Pieces.

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Decades ago, Benjamin Graham explained the stock market was like a voting machine in the short run. It tallied which companies were popular and unpopular based on investor sentiment. That sentiment or conviction was based on some sort of fundamental or technical rationale. In the long run, however, Graham said the stock market was like a weighing machine. It assessed the substance of a company’s business performance; rewarding winners and punishing losers. At least, that’s the way the stock market used to work

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Another Take On ‘A Modest Proposal’ Jan9

Posted by & filed under Hedge Fund Performance, White Papers/ Thought Pieces.

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Much has been written over the past several years dissecting reasons for the disappointing results of the hedge fund industry overall. Critics decry mediocre returns, the tendency to lag the overall market, and steep fees. What most critics fail to point out, however, is the lack of usefulness in focusing on aggregate hedge fund performance. With hedge funds currently numbering somewhere north of 14,000, the array of investment choices a buyer of such funds might make is staggering. But the vast majority of these hedge funds have, for reasons good or bad, failed to live up to their hype

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The Quest for Sustainable Outperformance in Hedge Fund Manager Selection Sep8

Posted by & filed under Hedge Fund Performance, White Papers/ Thought Pieces.

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Alternatives have big shoes to fill in most portfolios: they are often intended to both enhance return and reduce risk. The promise that hedge funds and other alternatives can meet this ambitious goal is responsible in large part for their tremendous growth in recent years. However, judging from published data and anecdotal evidence, many investors have been disappointed on both measures as returns have dropped and correlations with traditional investments have risen

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Track Record Investing Sep2

Posted by & filed under Hedge Fund Marketing, Hedge Fund Performance, White Papers/ Thought Pieces.

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As the splashy spectacle that was the Rio Olympics slowly recedes into memory, the event can be looked at through an analytic lens. The BBC published a fascinating article: Why do swimmers break more records than runners? And who knew this was even the case?! Those who are schooled in analysis (that includes you, discerning reader!) may ask: what are the conditions that propel this phenomenon of outperformance? It turns out, that there are four factors, three of which are

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