Despite repeated evidence that asset allocation accounts for a very large fraction of a portfolio return, the industry has never stopped favouring stock picking as the preferred form of active investment strategy. In this paper, we attempt to rehabilitate the importance of active asset...

Asset allocation advisers usually use the mean-variance framework to show the benefits of investing in hedge funds. The authors prove that this is not optimal when the assets are not normally distributed and develop a method based on a modified Value-at-Risk for non-normally distributed assets....

Hedge funds have become the darling of investors due to their presumed capacity to make money under all market conditions. Some are certainly worth investing in, and can augment a portfolio in very attractive ways. At the same time, they carry not only more but quite different risks than do...

Alternative investments and hedge funds in particular are now an integral part of the asset allocation process of Swiss asset managers and institutional investors. The existing legal and regulatory frameworks, as well as the practice of the Swiss supervisory authority, have allowed that...

This article provides the key findings of Edhec European Alternative Multi-management Practices Survey. It provides a detailed summary of the results of the survey of the 61 multimanagers carried out, as well as details of the research performed both by Edhec and numerous other professional and...

In the past decade significant progress has been made in achieving a single European market for investment funds. The ratio of cross-border fund flows has reached an estimated level of more than 20%, and in some European countries the number of registered non-domestic investment funds exceeds...

Over the last half decade, asset flows into hedge funds have surged, the number of funds has expanded exponentially, and new products have emerged which allow investors to obtain hedge fund exposure via structured transactions. To many, this is due to a paradigm shift in investment management...

This paper looks at the future of hedge funds, the challenges they face, and how they can remain successful going forward.

This paper looks at the future of hedge funds, the challenges they face, and how they can remain successful going forward.

Hedge fund regulation in the U.K. may be viewed as three distinct issues: (1) Systemic risk issues, following the near-collapse of LTCM; (2) The regulation of hedge fund managers – many managers are established in the U.K.; and (3) Retail marketing. The position is complicated by the fact that...