Pick the Winners and Avoid the Losers
Buch, Englisch, 161 Seiten
ISBN: 978-1-84374-117-6
Verlag: Euromoney
Learn how to pick the winners and avoid the losers in fund of funds from one of the leading consultants to the hedge fund industry.
"Alan Dorsey has written a compelling book for those seeking to untangle the mysterious world of hedge funds and fund of funds. His no nonsense style helps chart a course for investors or prospective investors in this rapidly growing field."
Arthur Levitt, Former Chairman, United States Securities and Exchange Commission
This user-friendly guide helps you:
understand the portfolio advantages of funds of funds,
learn about the marketplace and its participants and
recognize the critical steps to evaluate the merits and risks in managers.
Includes in-depth analysis on:
hedge fund evaluation
portfolio construction
due diligence
monitoring
performance attribution
benchmarking
Includes a full glossary.
Autoren/Hrsg.
Fachgebiete
- Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Anlagen & Wertpapiere
- Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Internationale Finanzmärkte
- Wirtschaftswissenschaften Volkswirtschaftslehre Internationale Wirtschaft Internationale Finanzmärkte
- Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Bankwirtschaft
- Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen Finanzierung, Investition, Leasing
Weitere Infos & Material
Acknowledgments
About the author
Preface
Introduction
PART I – What are hedge funds of funds, where do they fit
In a portfolio, and who should invest?
Chapter 1: What is a hedge fund of fund?
Defining a hedge fund of fund
Overview of non-directional versus directional funds of funds
Why invest in a hedge fund of fund?
Chapter 2: What are the organizational benefits of a fund of fund?
Introduction
Manager selection oversight
Portfolio construction oversight
Due diligence oversight
Monitoring
Positive absolute performance
Chapter 3: What are the portfolio benefits of a fund of fund?
Manager-specific diversification
Hedge strategy diversification
Hedge strategy concentration
Economies of scale
Access to hedge funds with high minimums
Liquidity
Chapter 4: What are the organizational negatives?
Added layer of fees
Manager search required in selecting a fund of fund
Due diligence required on the fund of fund
Chapter 5: What are the portfolio negatives?
Less customization for investor-specific risk tolerances
Less direct contact with the underlying hedge funds
Less knowledge transfer
Chapter 6: The role for hedge funds of funds in a portfolio
Determining the role for hedge funds of funds
Diversification, risk reduction and improved returns in a fund of fund
Funds of funds as asset class versus strategy
How to fund the allocation to hedge funds
The use of hedge funds of funds in Portable Alpha
Chapter 7: Who should invest in funds of funds and what are the considerations?
Introduction
Size of the investor’s portfolio
Taxable investors
Non-taxable investors
Organizational considerations
Structural considerations
Investment considerations
Sample guideline policies for potential manager constraints
PART II – The hedge fund of fund market-place
Chapter 8: Growth in assets and entities
Introduction
Directional versus non-directional market size
The factors driving growth
Prospect for consolidation
Chapter 9: The role of the consultant
Who the consultant represents
Education
Asset allocation
Portfolio construction
Manager identification
Manager due diligence
Manager monitoring and peer group benchmarking
Lack of conflicts of interest
Chapter 10: Benchmarking and investable indexes
Introduction
Investable hedge fund indexes
Chapter 11: Regulation
Regulation of investment advisers
Regulation of the investment vehicles
Chapter 12: Fund structure
Domiciles and reasons for them
Benefits for the investment manager in offshore domiciles
What the investor should care about in offshore domiciles
Practical examples
Registered Investment Companies
PART III – Analysis of hedge funds of funds
Chapter 13: How to pick the winners
Fund selection criteria
The investment processes of a superior fund of fund
Risk management characteristics of a highly qualified fund of fund
Organizational characteristics of a capable fund of fund
Chapter 14: How to avoid the losers
Identifying risk characteristics
Lack of a three-year track record
Size matters
Funds of funds that are not Registered Investment Advisers
Dysfunctional decision-making process
Analysis of hedge strategies and underlying hedge funds
Conflicts of interest
Chapter 15: The use of performance in fund of fund evaluation
Does historical performance matter?
Performance dispersion of directional versus non-directional
funds of funds
Is low volatility of performance more valuable than high returns?
Performance attribution by manager selection versus strategy allocation
Relative performance versus benchmarks
Chapter 16: Portfolio construction, hedge strategy allocation, and manager selection
Introduction
Directional versus non-directional portfolios
Directional portfolio construction
Non-directional portfolio construction
Chapter 17: Due diligence
A roadmap for all investors
Document collection
The questionnaire
Onsite interview
Background checks
Reference interviews
Interviews with clients, hedge funds, and service providers
Chapter 18: Monitoring
The importance of monitoring
Detection of subtle change
How much is enough to pull the plug?
What sort of transparency is needed?
Absolute versus relative performance monitoring
Compositional deviation from peers
The key elements to monitor
Methods for and frequency of monitoring
Chapter 19: Fund of fund organizational review
Inception and stability
Ownership structure and compensation system
Organizational chart
Team cohesiveness, culture, and tenure
Historical experience of personnel
Product reviews
Administrative review
Glossary of terms
References
