Investing in large managers: A proven path to failure
Absolute Return + Alpha | March 06, 2012 | Joseph Marren
While the herd of like-minded investors is focused on only the largest hedge funds and funds of hedge funds, investors who want to be successful in 2012 and beyond would be better served by heading back to the future, where the roadmap for success points...
The Relation Between Hedge Fund Size and Risk
Spring Mountain Capital, LP | November 2010 | Haim A. Mozes, Ph.D & Jason Orchard, CFA
In their quest for safety, investors have been willing to forego the higher returns that could be achieved with investing in smaller hedge funds for the perceived greater safety of investing in larger hedge funds. This paper provides evidence that this approach may be misplaced, because large funds are actually riskier than smaller funds...
Credit Where Credit is Due
Investment Dealers Digest | February 9, 2009 | Gerelyn Terzo
The hedge fund industry has gone through seismic changes over the past six months, from massive reductions in leverage to a complete redistribution of assets. Burned by unprecedented gyrations in the equity capital markets, hedge funds and fund of funds are now increasingly focused on credit...
The Madoff Fraud Case: For Mr. Balter, Madoff Effect Lingers On
The Wall Street Journal | January 9, 2009 | Gregory Zuckerman
For years, Brad Balter lost business to Bernard Madoff and warned investors about him, saying his results were too good to be true. Now that Mr. Madoff has confessed to his scheme, Mr. Balter, who invests about $300 million in various hedge funds, feels no relief...
Sinking Ship?
Investment Dealers Digest | November 24, 2008 | Gerelyn Terzo
Hedge funds have seen a massive wave of requests for redemptions by investors, many of whom have not distinguished between those fund managers that saw positive returns and those that lost money...
40 Under 40
Investment Dealers Digest | November 17, 2008
Page 19: Brad Balter CFA, 38-year old founder of Boston-based alternative investment firm Balter Capital Management (BCM), walked away from 15 years of security working for the bigger banks—including managing hedge fund client relationships for Citigroup in the firm’s investor group—to instead go it alone...
AIMA'S Roadmap to Hedge Funds
The Alternative Investment Management Association Limited | November 2008 | Alexander Ineichen & Kurt Silberstein
One of the great things about hedge funds is that they have provided a field day for academic researchers to write scholarly articles on their risks and returns. Yet, for all of this scholarship, a practical roadmap to hedge funds has remained elusive. Until now...
Managerial Expertise
Investment Dealers Digest | October 13, 2008 | Gerelyn Terzo
The Ohio Highway Patrol Retirement System (HPRS) is going where many other endowment funds shudder to go right now. While some, including the School Employees Retirement System of the same state, are suspending all hedge fund investments for the time being, HPRS is doing the opposite: It is receiving requests for proposals (RFPs) from hedge funds...
Pension Funds Pull Back From Hedge Funds
FINalternatives | October 3, 2008
Hedge funds and funds of funds are seeing an increase in redemption notices as the industry plunges deeper into the red amidst regulatory constraints and the global credit crisis...
Shot Through The Heart
Investment Dealers Digest | September 29, 2008 | Gerelyn Terzo
If the recent temporary ban on short-selling of the financial services sector implemented by the Securities and Exchange Commission and other regulatory bodies around the world has affected any group for the worse, it has been the hedge fund community...
Q&A: Balter Bets On Simplicity
FINalternatives | September 8, 2008
Hedge funds have had a rough year, dealing with rapidly deteriorating credit, housing and equities markets. Their performance, or lack thereof, has led to concern among investors, particularly funds of funds, which experienced net withdrawals of investor assets in the second quarter for the just second time on record, according to figures from HedgeFund.net...
Liquidity Shocks, Size and the Relative Performance of Hedge Fund Strategies
Available at SSRN | May 2008 | Bill Ding, Hany A. Shawky and Jianbo Tian
We examine whether the increase in the flow of capital to hedge funds over the period 1994-2005 had a negative impact on performance. More specifically, we study the relative performance of small versus large funds for each of the hedge fund strategies...
Fund of Hedge Funds Fee Structures: Change is in the Wind
The AIMA Journal | Spring 2008 | Brad R. Balter, CFA
Funds of hedge funds (FoHF) have been and will continue to be an integral part of hedge fund investing. While many investors can and have chosen to bypass FoHF structures in order to invest “direct”, for the past 10 years AUM under the FoHF structure grew faster than AUM for all hedge funds combined...
Update to “An Examination of Fund Age and Size and Its Impact on Hedge Fund Performance”
Journal of Derivatives & Hedge Funds | January 2008 | Meredith Jones
This short paper updates research originally published in the February 2007 issue of the investment journal Derivatives Use, Trading & Regulation ( re-titled of as May 2007 to Journal of Derivatives & Hedge Funds). The original paper and this update attempt to discover whether smaller, younger hedge funds offer stronger performance than larger, older hedge funds...
Gatekeepers in the Hedge Fund Industry: The Good, the Bad and the Ugly
The AIMA Journal | Autumn 2007 | Brad R. Balter, CFA
A gatekeeper can be defined as anyone who is responsible for selecting, screening and eventually allocating capital on behalf of others. For the purposes of this article, when we speak about the role of the gatekeeper, we are referring to the hedge fund and fund of funds universe...
Hedge Fund Industry Fragmentation and the Case for Smaller Managers
The AIMA Journal | Spring 2007 | Brad R. Balter, CFA
It is common knowledge that the hedge fund industry looks vastly different today than it did ten years ago. As with all growing industries (and there is little question that the hedge fund industry continues to grow), the landscape dynamics are shifting...
Meet the Manager: Brad Balter, CFA
HedgeCo Networks | 2007
It is common knowledge that the hedge fund industry looks vastly different today than it did ten years ago. As with all growing industries (and there is little question that the hedge fund industry continues to grow), the landscape dynamics are shifting...