One should not discount the possibility of further financial volatility because of the leverage of non-financial bank intermediaries. … READ MORE >
hedge funds
CHART OF THE DAY: Hedge funds are faring well, but there is a range
Hedge funds are faring well after years of lackluster results, but the returns have not been uniformly strong. … READ MORE >
Hedge funds will be tested as U.S. fundamentals remain frail
Middle market hedge fund managers are coping with a contradiction—as the world unravels due to Covid-19, the S&P is nearing an all-time high. While the markets respond favorably to progress on a vaccine, money managers are looking to a future with a high degree of uncertainty around a possible U.S. recovery amid weak fundamentals. … READ MORE >
As SBA accepts new applications for Paycheck Protection Program, private equity is not eligible
As the Small Business Administration began accepting applications on Monday for loans under the second round of financing for the Paycheck Protection Program, private equity firms and hedge funds will not be eligible. … READ MORE >
As hedge funds struggle, money flows to limited stakes in private equity firms
A number of large, mature investors have taken a greater interest in creating funds dedicated to investing in minority interests in general partners of both open-end funds and closed-end funds. … READ MORE >
Middle market hedge funds, facing a squeeze, look to AI and alternative data
The traditional approach of using corporate earnings reports, poring over regulatory filings and mining census data is not enough anymore. Instead, hedge fund managers are looking to alternative sources of information like web-scraped data, satellite imagery, credit card tracking and social media sentiment, … READ MORE >
Hedge fund performance may be tested—again
The average performance of the hedge fund sector since the Great Recession has lagged the returns of passive investments including broad-based equity index funds tied to the S&P 500 as well as exchange-traded funds. The underperformance of hedge funds, a risky but historically high-flying sector whose managers are compensated on their ability to outperform the markets, has resulted in net capital outflows and lower fees … READ MORE >