Jim Liew of Alpha Quant Club late posted an interesting article close the increasing postulate for transparency of hedge fund strategies yesteryear institutional investors, as well as then much as well as then that they are essentially willing to invest solely inward managed accounts amongst real-time trades as well as positions updates. This is, of course, bad for fund managers, since non solely tin flaming the investor reverse-engineer the simpler strategies from such knowledge, they tin flaming every bit good piggy-back on the trades, hence paying a much smaller component of their profits every bit surgical procedure fee. One mightiness live on tempted to mean value that since the investors are going to reverse-engineer the production anyway, why non simply become far every bit elementary as well as every bit generic every bit possible, as well as accuse a much lower fee than the commons 2-20 (which hopefully volition attract a much larger investor base), as well as then that the primary value to the investor is simply convenience as well as non the originality of the strategy?
In fact, Jim wants to produce simply that. He proposes to build hedge fund "barometers", essentially prototypical hedge fund strategies running inward managed accounts. This would move good if these barometers convey large plenty capacities such that the surgical procedure tin flaming concur upwards fifty-fifty when a large set out of investors sign up. From the investors' indicate of view, this is a trade-off betwixt investing inward a genuinely outstanding, high-performance strategy piece paying a large fee as well as losing "transparency", versus simply investing inward a generic strategy that may notwithstanding outperform the wide market. For some institutional investors, this mightiness simply live on the grapple they are looking for.
Tidak ada komentar:
Posting Komentar