New thematic research programs examining sovereign investment funds management and a more general initiative on best investment practices will be a part of the academic work of the recently opened Asia office of Europe’s EDHEC-Risk Institute.
Investors focus on hedge fund correlations: survey
Accessing non-correlated strategies has emerged as the top institutional aim in hedge fund investing, according to a survey by SEI Knowledge Partnership and Greenwich Associates, reflecting a shift in objectives since the 2009 survey, when institutions reported diversification and absolute return as priorities.
Inflation-linked bonds and their relative value as an inflation hedge
Treasury inflation-protected securities (TIPS) have a relatively unique profile within fixed income portfolios, which has important implications for investors’ setting of objectives and portfolio construction. This Towers Watson article explores the different motivations for using TIPS and other inflation hedges.
Detecting crowded trades in currency funds
This article by Momtchil Pojarliev and Richard Levich proposes a methodology to measure crowded trades and applies it to currency managers. According to the authors, this methodology offers useful insights regarding the popularity of certain trades among hedge funds and provides regulators with another tool for monitoring markets.
New Mexico boosts opportunistic credit allocation
While active management has been the biggest contributor to the outperformance of the New Mexico Educational Retirement Board in the past year, the fund has a firm focus on the value of asset allocation. With this in mind it recently changed its long-term policy allocation, dramatically increasing the allocation to credit opportunities from 5 per cent to 20 per cent.
Investors suffer as Asian hedge funds ossify
As institutions take over from high-net-worth individuals and family offices as the main investors in hedge funds around the world, those hedge fund managers, too, are becoming institutionalised. This is not always a good thing for investors.
