Hedge funds, unlike traditional asset managers, are likely to use independent parties to sell their products to investors. These parties-often called third party marketers in spite of the fact they sell rather than market a product -typically strike a deal with hedge fund manager whereby they will receive a portion of the management and incentive […]

Last week, five of the largest hedge fund managers (Caxton Corporation, Kingdon Capital Management, LLC, Moore Capital Management, Inc., Soros Fund Management LLC, and Tudor Investment Corporation) published a report entitled, “Sound Practices for Hedge Fund Managers.” The report is a response to the May 1999 President’s Working Group on Financial Markets report, “Hedge Funds, […]

A new era is dawning on hedge funds in the wake of Long-Term Capital Management (LTCM) where transparency will become the norm, not the exception. Undoubtedly, many regulatory and commercial changes will result from the demise of LTCM (and other lesser-known hedge funds). Yet one thing hedge fund managers can be sure of is that […]

In our second quarter issue (before Summer 98), we noted that ‚market neutral strategies are not riskless, investors should not underestimate inherent strategy and structural risks when making investment decisions. We further noted that, managers are (being) forced to increase leverage, take directional bets or employ new strategies to generate returns in line with their […]

Why should investors be interested in what hedge funds are doing given  that the average investor cannot invest in one? Brian McQuade of Hedge Fund Center provides some thoughts.    1.  Hedge funds vs. mutual funds - structure:  The primary difference  is the legal and regulatory structure that a hedge fund operates under.  A hedge fund […]

A Talk By Brian McQuade, HedgeFundCenter.com, at the Opal Financial Conference during the week of 11/16/98            I have three topics that I wish to discuss with you today:        1. How is the hedge fund industry perceived today?        2. What opportunities does the hedge fund industry have available to it to change these opinions?        3. How […]

Every three or four years, the hedge fund industry just seems to find itself in trouble. It happened back in 1987, then in 1990, in 1994, and again in 1998. The major causes have been: the US stock market crash in 1987; the high yield crash in 1990; and the Fed’s interest rate hike in […]