hedge funds: The increase in assets under management led to some interesting discussions. Lots of readers had e-mailed me with comments on both alpha -- market-beating returns -- and fee generation after last weeks column, The Hedge-Fund Manager Dilemma .'', according to Bloomberg. Some hedge funds generate a lot of alpha : Given the underperformance of the industry, why do so many investors want to participate in hedge funds? The most likely answer is the enormous alpha generated by a handful of star managers and Larry Swedroe, research director for BAM Advisor Services LLC, noted earlier this month that total hedge fund assets under management, or AUM, reached $2.63 trillion. This represents a sizable increase, despite fund performance generously described as lackluster. There is much more nuance to the discussion of hedge funds than is widely understood. Today is a good time to review some of the related issues. Lets see if we can clarify some misunderstandings:
(news.financializer.com). As
reported in the news.
Tagged under Larry Swedroe, assets under management topics.