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Month: October 2013

Alternative Investments…

Fund of Hedge Funds, Manager Selection, and Due Diligence

22 Oct 2013November 14, 2013
One of the main reasons that more and more institutional investors, particularly endowments and foundations, include hedge funds in their portfolios is the expected diversification benefit, given the existing array…
Alternative Investments…

An Event-Driven Strategy: Merger Arbitrage

22 Oct 2013October 23, 2013
Event-driven strategy seeks to invest in opportunities associated with corporate transactions such as consolidations, acquisitions, recapitalizations, bankruptcies, and liquidations. Merger arbitrage event-driven managers employ strategies that can capitalize on valuation…
Alternative Investments…

A Relative Value Strategy: Convertible Arbitrage

22 Oct 2013
Hedge funds deploying relative value strategies seek to take advantage of “discrepancies” in price between securities or the overall market. Within the relative value category, there are sub-strategies, and convertible…
Alternative Investments…

A Global Macro Strategy: Managed Futures

22 Oct 2013October 28, 2013
  Hedge funds utilizing a global macro strategy take positions in equity, fixed income, or currency markets in anticipation of global macroeconomic events to generate risk-adjusted returns. Global macro fund…
Alternative Investments…

Hedge Fund Landscape

22 Oct 2013November 26, 2013
The first hedge fund emerged in 1949 when sociologist Alfred Winslow Jones and his four friends formed an investment partnership. The first reference to a hedge fund appeared in a…
Alternative Investments…

Impact Investing – The Next Generation of Venture Capital

20 Oct 2013October 20, 2013
In the 1990s, Jed Emerson advocated the concept of Blended Value for funds, firms, social ventures, and foundations to invest with social and environmental impact, rather than to maximize financial…
Alternative Investments…

Private Equity Portfolio Management

20 Oct 2013October 20, 2013
Portfolio Management is a process of making investment decisions about asset mix, policy, and buy/sell disciplines in order to meet individual and institutional investors’ specified financial objectives, risk tolerance, investment…
Alternative Investments…

Private Equity Fund of Funds

19 Oct 2013October 19, 2013
PE fund of funds have been around for nearly as long as the buyout industry. This type of investing became mainstream during the mid to late 1990s, as institutional investors…
Alternative Investments…

Venture Capital and Buyout

18 Oct 2013
The Yale Endowment’s investment success has been largely driven by the categories that are designed for sophisticated investors, such as PE. Ten years ending June 30, 2013, the endowment fund’s…
Alternative Investments…

Private Equity Landscape – Updated through October 2013

17 Oct 2013November 26, 2013
The growing interest in private equity investments has arisen among the institutional investors in the U.S., particularly endowments and foundations. The most significant reason of which include: compared to public…
Alternative Investments…

Endowment Spending and Purchasing Power Preservation (IV): Real Estate

15 Oct 2013October 28, 2013
Potential Benefits of Real Estate Investments Similar to the return patterns of other real assets, real estate returns also have low correlations with traditional investment vehicles, which adds a diversification…
Alternative Investments…

Endowment Spending and Purchasing Power Preservation (II): Timberland

14 Oct 2013October 28, 2013
Investments in natural resources, such as oil and gas, farmland, timberland, and metals and mining provide protection against unanticipated inflation, high and visible cash flow, and opportunities to exploit inefficiencies.…
Alternative Investments…

Endowment Spending and Purchasing Power Preservation (I): Commodities

13 Oct 2013October 14, 2013
Endowment Spending Policy One of the most difficult challenges that any investment committee member of endowments and foundations face is choosing a spending policy that will best balance two competing…
Asset Allocation…

Theory Versus Practice: Rethink Your Portfolio Optimizers

9 Oct 2013October 10, 2013
Portfolio optimization is a mathematical process of assigning the proportions of various asset classes or investment styles to be held in a portfolio, in a way as to construct the…
Asset Allocation…

Balancing Risk and Reward: Asset Allocation

8 Oct 2013October 16, 2013
The Importance Asset Allocation Many portfolio managers believe that asset allocation is one of the most important decisions that investors make: From a portfolio design standpoint, portfolio theory asserts that…
Alternative Investments…

From Modern Portfolio Theory to Pioneering Portfolio Management: The Endowment Model

6 Oct 2013October 15, 2013
Implications of Modern Portfolio Theory Traditional and widely used institutional policy portfolios commonly consisted of a majority of U.S. equities and a reciprocal proportion of U.S. bonds, e.g., 60% stock/40%…
Portfolio Management…

Where Would You Place Your Trust – Wall Street, Main Street, or University Street?

2 Oct 2013October 2, 2013
In my experience in the investment business, I have found three basic choices. You can trust Wall Street (financial media, investment banks, insurance companies, brokerage houses, mutual fund families), Main…

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Fundopedia maintains the Insights page to offer investor education. All the investment perspectives and subject-matter opinions expressed here are purely and entirely by Fundopedia and Dr. Chenjiazi Zhong, founder of Fundopedia, based on firsthand portfolio-management experience. Fundopedia does not claim to be nor make an effort to be an expert on any certain topic.

 

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