Understanding Operational Due Diligence in Hedge Funds: A Critical Tool for Investors

In the fast-paced, often opaque world of hedge fund investing, returns often take center stage in discussions about fund performance. However, focusing solely on returns can be shortsighted. Behind the scenes, operational risks—those ...
6 min read
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Perpetual Investors partners with Resonanz Capital

August 28, 2024 – Resonanz Capital is pleased to announce a strategic partnership with Perpetual Investors, a leading investment office. This collaboration aims to enhance manager selection, portfolio modelling, and risk monitoring for ...
1 min read

The Rise of PIK: A Double-Edged Sword for Private Credit

In recent years, a significant shift in the private credit landscape has emerged with the increasing use of Payment-in-Kind (PIK) financing. PIK, which allows borrowers to defer interest payments and instead add them to the loan principal, ...
6 min read

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Understanding Hedge Fund Quantitative Metrics: A Handy Cheatsheet For Investors

Hedge funds provide distinct return opportunities that differ from traditional investments in stocks and bonds. Due to their low correlation with other asset classes and the use of hedging strategies, hedge funds are designed to deliver ...
8 min read

Credit Risk Transfer (CRT) Transactions: The Opportunity Behind Safer Banking

In the ever-evolving landscape of global finance, banks and financial institutions continually seek innovative strategies to manage and mitigate risks associated with lending and investing. One such innovative approach that has garnered ...
10 min read

DPLTA: Playing The German Back-End Game

The “German back-end” trade is a form of corporate activism used by event-driven hedge funds in the context of public takeovers in Germany. This approach, centered around leveraging litigation post-takeover to profit from minority ...
4 min read

SPARCs: A New Era of SPACs?

In July 2021, Bill Ackman told investors he would be liquidating and returning capital in his Pershing Square's $4 billion SPAC, the biggest ever SPAC, after failing to find a suitable target company to take public through a merger. ...
8 min read

Merger Arbitrage: A Turning Point For Managers?

Merger Arbitrage has had multiple challenges during the first half of the year, leading to disappointing performance from many hedge funds in this space, but we now believe that spread widening has priced in much of the risk, and therefore ...
5 min read

Beyond The AI Hype

AI is a vast multidisciplinary that seeks to develop computer systems capable of performing tasks that typically require human intelligence, such as understanding natural language, recognizing images, making decisions, and learning from ...
4 min read

Managing the Denominator Effect: A Portfolio Trading Perspective

The market downturn last year presented a vortex of formidable challenges to investors. Most significantly, the rapid decline in prices for publicly-traded securities bred the emergence of portfolio imbalances. This created an unexpected ...
7 min read
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