Co-investments In The Context of Hedge Funds

Traditionally, co-investments were part of the playbook of the PE industry (but also real estate, infrastructure and energy partnerships) for many years. Over time, they have been gradually adopted by the hedge fund industry (and other ...
Read more
4 min read

Most popular

The Myth of Talent in Multi-PM Platforms: Unraveling the True Drivers of Alpha GenerationCredit Risk Transfer (CRT) Transactions: The Opportunity Behind Safer BankingUnderstanding Hedge Fund Quantitative Metrics: A Handy Cheatsheet For InvestorsThe Rise of PIK: A Double-Edged Sword for Private CreditDPLTA: Playing The German Back-End GameTen Hedge Fund Investment Terms You Need To Know

The Dynamic Convertible Bond

Convertible Bonds and convertible arbitrage were high demand Hedge Fund strategies in the 1990’s up through the financial crisis. The confluence of GFC and the subsequent decade plus of QE was devastating for convertible strategies for two ...
Read more
2 min read

An Overcrowded Russell Rebalance

The Russell Rebalance The 2022 Russell Rebalance was a reminder of the risks of the “crowded trade”. Index Rebalance is a popular arbitrage strategy. Historically, stocks scheduled to be added or deleted from an index are projected weeks ...
Read more
2 min read

Subscribe to our blog

LME Nickel: Winners, Losers and the Fallout

The London Metal Exchange (LME) Cancels Trades On 7th March, the 3-month LME nickel futures contract jumped above $30,000 per ton as investors speculated on the impact of supplies due to the Russian-Ukraine war. Russia was the third ...
Read more
5 min read

Hedge Fund Returns And Alternative Risk Premium Factors

In two previous posts (Identifying Alternative Risk Premium Factors and Alternative Risk Premium Factors), we outlined how Quantitative Investment Strategy indices (QIS) can be used to construct common alternative risk factors that contain ...
Read more
8 min read

Rho Risk For Options And Derivative Securities

Rho risk measures a derivative’s sensitivity to interest rate changes. This Greek risk was relatively dampened in the recent low rate environment but can never be ignored. Similar to Vega, interest rate changes impact longer-term ...
Read more
3 min read

Alternative Risk Premium Factors

In a previous post (Identifying Alternative Risk Premium Factors), we outlined how bank risk prima can be used to construct common alternative risk factors that contain largely orthogonal information. These risk factors are based on ...
Read more
8 min read

Are Short Sellers in Trouble With The Regulators?

A Criminal Investigation Into Potentially Illegal Short-Selling Practices In December 2021, news broke that US criminal authorities have been gathering information on the symbiotic relationships between dozens of short selling hedge funds ...
Read more
3 min read

Options Straddles And Earnings Move Estimates

Equity options straddles can be used to estimate the underlying move for events captured by the respective expiration. The classic Black-Scholes model requires five input variables: the strike price of an option, the current stock price, ...
Read more
3 min read

Identifying Alternative Risk Premium Factors

Why Do We Need (New) Risk Factors? In determining a fund’s ability to generate alpha, or in evaluating a fund’s market risk, the sensitivity of the fund to risk factors is usually considered. In 2004, Fung and Hsieh proposed to measure a ...
Read more
5 min read