Introduction to Private Equity
A Broad Definition Private Equity has been around a long time and is broadly considered as any privately held interest in a company, that is to say that is not publicly traded. Having said that there are now various Private Equity Firms that are publicly traded. These...
Main Hedge Fund Strategies & Their Definitions
Hedge Funds Universe Hedge Funds have a myriad of different types of strategies and it should be well defined and stated in the investment memorandum. There is no official list and even market-wide definitions of styles may vary considerably depending on who is...
Hedge Fund Investing: Still on the Upswing
It was big news on Wall Street when the California Public Employees' Retirement System announced just over a year ago that it was planning to axe its $4 billion stake in hedge funds, saying that they were "too expensive and complex." Calpers is America's largest...
Private Equity and The J-Curve
Cash Flow profile of a Private Equity Investment The cash flow of a Private Equity investment and therefore of the the Private Equity fund investing in such securities has a negative return or cash flow during the initial years, usually during the first 3 to 5 years....
Role of Commodities in Portfolio Allocation
There are fundamentally 2 reasons for including Commodities within a Portfolio, diversification and return enhancement. We will have a look at why Commodities may be good for diversification, therefore reducing overall risk and in what way they may enhance returns of...
Real Estate ; Debt Investments
Real estate investments in Debt Real Estate Debt is broadly divided into two types; Residential Mortgages and Commercial Mortgages. The main differences are in the characteristics of the borrower, the Residential Mortgage borrower will usually be an individual and...
What makes an Investor Accredited or Sophisticated?
The definitions vary from around the globe, basically apart from institutional investors the term Accredited Investor usually refers to High Net Wealth individuals who are considered sophisticated enough to understand the risks of the investments they are undertaking....
Red flags to be aware of in manager selection
Hedge Fund Longevity It is vital that Due Diligence is performed before investing in any fund. This helps us take on less risk and hopefully avoid funds that are managed badly, more likely to fail, or simply more likely to be fraudulent. Hedge Funds are well known for...
Hedge Fund Strategies and their importance in manager selection
Hedge Fund Portfolio Construction Portfolio construction shouldn’t be taken lightly and leads to a complex fund selection process. There are many steps to be taken in the Due Diligence needed to filter higher performing managers from their lesser peers. It is well...
How Hedge Funds help protect downside risk as well as diversify a Traditional Portfolio
Hedge funds are well known for being risky and at the same time rewarding with the emphasis being on risky. The truth is they can be extremely risky as a standalone investment in any single Hedge Fund. However placed within the context of a diversified portfolio...
