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

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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

The State Of Distressed Debt Investing

Since the GFC, a combination of prolonged ultra-low interest rates to sustain economic growth and fiscal and monetary backstops at times of trouble has helped support earnings growth and appreciating valuations, ultimately fueling the ...
6 min read

Hedge Funds Perspective On Converts for 2023

Overview Of The Convertibles Market Convertible securities (“CB”, or “converts”) offer investors the potential for equity-like appreciation while providing the downside risk protection of a fixed-income instrument. The defensive nature of ...
6 min read

The Exclusive Club of Multi-PM Hedge Funds

In February of this year, we highlighted a trend amongst hedge funds of locking up investors capital for longer time periods, but we noticed that this trends applied to a small number of successful managers, both in terms of recent ...
7 min read
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