|
News
- Welcome to the Week in MoneyScience - Digest 03/02/12 http://t.co/nIa92hVa #linkfest #finance #quant #risk #tcm #tech #research
- Buttonwood: Rich managers, poor clients - "A Devestating Analysis of Hedge Fund Returns" http://t.co/zG71EDTg #tcm
- What if Returns Don't Reach 7%? - Falkenblog at MoneyScience http://t.co/7KgpCyH5
- A brand new RSS Feed: Financial Research Focus - latest published, latest preprints and additions to our library http://t.co/0V9aBSkX
- Self-selection bias in voluntarily reported hedge fund performance data - http://t.co/wRIPK1NJ
- Another Week, Another Week in MoneyScience - Digest 27/1/12 - http://t.co/e35Hp939
- 101 Linkedin Groups for Financial Professionals - http://t.co/KueZ5Y1T #finance #quant #risk
- New and Updated! Financial Technology Focus: The RSS Feed - aggregating #finTech content from MoneyScience http://t.co/ayIS9b4r #quant
- Need for Speed: An Empirical Analysis of Hard and Soft Information in a High Frequency World http://t.co/bjeoCukP via @commonlisp #hft
- Via @AbnormalReturns: Systematic Risk and the Cross-Section of Hedge Fund Returns - http://t.co/onULxBjv #riskmgmt #hedgefunds #finance
- Hedge Funds, Systemic Risk, and the Financial Crisis of 2007-2008 http://t.co/FLLR2DHd #hedgefund
- David Einhorn has made quite a few appearances on MoneyScience recently: http://t.co/5gBpojmW
- David Einhorn, the man who shorted Lehman, fined for insider dealing - http://t.co/Iq2pHlMk
- Mega-man: The fast, fabulous, and fraudulent life of Kim Dotcom included an allegedly AI-driven hedge fund http://t.co/fLzEEmeb
- Why Distributions Matter: Returns for long only ETF's non-normal 15-20% of the time, for Hedge Funds 30-40% of the time http://t.co/4DQQlJL9
- Via @Ritholtz - Interesting Paper: Assessing the Performance of Funds of Hedge Funds - http://t.co/nOLmp1Ig
- In Tweets: The LSE Alt Investment Conference #HedgeFund Day - featuring Peter Clarke, Man Group http://t.co/f4BEZuX4
- Video: Interview with Stephanie DiMarco, Founder and outgoing CEO of Advent Software http://t.co/nOs1uIBf @adventsoftware
- Collected Tweets from The London School of Economics Alternative Investment Conference yesterday http://t.co/f4BEZuX4 @lsesuAIC #lseaic
- #lseaic Thus every year you survive in finance makes you more effective.
- #lseaic Dillard concluding with the quest for compensation. awarded for your ability to create value.
- #lseaic people don't pay attention to the value they create. Stay aware. Still, remember you are stronger in a team.
- #lseaic between 8 and 10 years into your career you should be aspiring for ownership / equity of the work you're doing.
- #lseaic work near the office! You don't want to be the guy / gal watching the clock to catch the train home Don't let others eat your lunch.
- #lseaic It takes time to develop these skills. 3rd - stay hungry, people who aren't get moved aside very quickly. losing focus is a mistake
- #lseaic there is also no substitute for hard work in the Finance industry - this is a trait more than a skill. There are no shortcuts here.
- #lseaic Find a good mentor! Saves time, reduces learning time and career risk, competitive advantage.
- #lseaic Hedge fund require talented people with general skills, and a huge demand for specialized skills.
- #lseaic Key survival traits for industry and career in finance: average md in banks lasts 18 months!
- #lseaic: through regulation, long only funds will look more like portfolios.The future looks more like hedge funds. Industry will grow.
- #lseaic - 2. mitigate risk, through your selection of instruments, hedging, shorting. Construct more sophisticated portfolios.
- #lseaic 2 ways to do this: 1. call market direction - very hard, very risky. Starting off career in bear market is an advantage.
- #lseaic Economics and markets strongly influence strategy selection. Portfolio's must stay current or ahead of the changing markets.
- #lseaic example in the internet bubble, quite clear that funds were still outperforming indices. Using fund of funds as a proxy.
- #lseaic comparing hedge funds with long only funds: higher returns / lower risk. profiting when markets are down is a significant advantage
- #lseaic Globalisation increases investment complexity. You need to be smarter now than you did in the 60s / 70s.
- #lseaic This is a large industry, it is changing and emerging markets are becoming key. In the 3o years industry needs talent to manage.
- #lseaic - Second pillar is emerging markets, transforming the geographical base of asset management. This is where the future is,
- #lseaic the biggest fear of baby boomers is outliving their savings
- #lseaic aSSET mANAGEMENT IS A $40trillion industry: 3 pillars - aging populations in the west encourage funds to focus on risk mitigation
- #lseaic Randall Dillard has spoken at this event several times before his backround in finance is broad from private equity to fund of funds
- Coming up #lseaic and @hedgefundfocus: Keynote address from Keynote Randall Dillard, Liongate Capital Management: "A career in hedge funds"
- #lseaic - that was my favourite talk of the day so far. I now have an hour or so off, due to no press in the next sessions.
- #lseaic on the upside: early stage mangers outperform older, larger peers, quality capacity going forward, better terms and corp governance
- #lseaic challenges and risk of early stage managers: higher business risk, more hand holding and higher degree of monitoring requiring.
- #lseaic Yup, I think you'd have to be far cleverer than Madoff to get one past Claude. - ed
- #lseaic early stage investors: Madoff not an option due to intensive contact and verification processes...
- #lseaic corporate governance issues, alignment of interests,control of assets and transparency (of course is in the seed funds interest- ed)
- #lseaic business issue support with service providers, fee levels, expense policy - also provide refewrences (good or bad) for others
- #lseaic Role of an early investor: support with documentation, marketing, risk reporting, legal
- #lseaic Finally, expect professionalism from Investors - and that they will understand what you tell them if you clear.
- #lseaic Brevity - get straight to the point; improve your presentation skills and explain strategy cleary; focus on process not outcomes
- #lseaic Be straightforward, know your offering memorandum, avoid cliches (robust, unique, collective experience, big name association)
- #lseaic How to sell your fund to investors: Do your research, know your potential investors: 3 p's politeness, persuasion, persistence
- #lseaic distinction between profitable funds and 'walking dead' - and funds where pre-emptive action is required.
- #lseaic sounds very much like private equity / venture models to me - ed
- #lseaic - less risk with seeding than fund of fund in Claude's opinion. A few profitable funds will pay for multiple blow-ups.
- #lseaic Acceleration model > usually experienced manager > reaches the magic $100m mark with revenue sharing at 20-30%.
- #lseaic seeding model - $30m to $100m under management, revenue of 20-30% given up in this model.
- #lseaic life cycle of managers: incubation model within larger firm > seeding model, manager sells part of revenue for equity stake
- #lseaic emerging managers, higher incidence of death / drop out.
- #lseaic returns of smaller / emerging managers are superior according to this chart, but other charts will be different. No consensus,
- #lseaic early stage managers pay attention to fund expense ratios and avoids herd mentality prevalent in established managers.
- #lseaic nimble, greater flexibility, can move in and out of positions faster, ability to exploit niches, 'wealth effect' hasn't set in
- #lseaic Early-stage Managers: investment rationale: the next generation managers: under-researched, have more favorable investment terms...
- #lseaic screening early stage managers on chance of raising assets: starts out with 1000 managers, only 2% actually picked for funds.
- #lseaic kicks off some industry outlook press coverage, almost entirely negative - given this, do you really want to get into this industry?
- #lseaic - Claude Porret 47°N Capital Management to start, 20 years + experience, and he's a she!
- No Press allowed: 'Best Trade Idea' with Steven Drobny, Christian Levett, George Papamarkakis & Dr. John Porter - #lseaic
- #lseaic next up: David vs. Goliath: Risk and Reward of Early-Stage Hedge Fund Investing, Claude Porret 47°N Capital Management
|
Featured Vendor News
MoneyScience News
More
Research Library
More
User Posts
|
