Money managers under the microscope
Our reporters have been scouting round the halls at the GAIM hedge fund conference in Monaco today. Here’s a taste of what we’ve seen so far:
And some links from Reuters Insider coverage:
News and views on the fund industry from Reuters and elsewhere:
Hedge funds eye lenders and banks - Reuters
UK state pension age could track longevity - Telegraph
Activist Myerson resigns as D1 Oils chairman – Telegraph
Lehman eyes end of bankruptcy – Reuters
from Global Investing:
Hundreds or even thousands of "active" fund managers are competing to add alpha to beat benchmark indexes, be it in stocks, bonds or alternatives.
The market is so efficient, historical performance is no guide to the future. It's nearly impossible to find a reliable method to pick advisers who deliver the best industry returns year in and out. There are also costs, from visible ones such as management fees and custody and administration expenses to "below water" costs such as trading commissions (due to higher turnover), bid/ask spread (price to buy, another to sell) and market impact costs (larger buy/sell orders affecting price).
Edward Cartwright is head of business development at alternative investment manager LGT Capital Partners in London. The firm runs $18 bln in hedge fund and private equity assets.
The views expressed here are entirely the author’s own and do not constitute Reuters point of view.
News and views on the hedge fund industry from Reuters and elsewhere:
Hedge funds exit from Europe bets - The Wall Street Journal
South African government to clamp down on hedge fund oversight - Business Report
News and views on the hedge fund sector from Reuters and elsewhere:
DE Shaw mobilises team to buy distressed assets of fund rivals – FT Traders in record bet against the euro – FT Galleon figure Chiesi stands by Rajaratnam – Reuters EU hedge fund regulation plans still risky: UK FSA – Reuters Britain need not fear a Greek tragedy, yet – Telegraph Australian single hedge funds return 20.81 pct in 2009 – HedgeWeek Berkowitz’s Fairholme likes more Berkshire Hathaway and healthcare – Seeking Alpha Pequot Capital’s Last Holding: InterOil – Seeking Alpha