Due Diligence

March 23, 2016

A Stable-Growth Environment: Value is Likely to Perform Better

For many value-oriented investors, the last five years have been a challenging period given an elevated macroeconomic risk and bouts of volatility, backdrop of the low growth and structural change in China. In the current environment characterized by more stable growth, value equities are likely to perform better. As of the February 29, 2016, U.S.… Continue reading

Due Diligence, Global Equity, Portfolio Management, Value Equity

October 22, 2013

Fund of Hedge Funds, Manager Selection, and Due Diligence

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 of investment opportunities. In the U.S., these institutions are still increasing their strategic allocation to hedge funds, despite the fact that hedge funds as a… Continue reading

Alternative Investments, Asset Allocation, Due Diligence, Hedge Funds, Portfolio Management, Risk Management

October 22, 2013

An Event-Driven Strategy: Merger Arbitrage

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 inconsistencies in the market before or after mergers and acquisitions deals, and take positions based on the predicted movement of the underlying securities. Mergers can… Continue reading

Alternative Investments, Due Diligence, Hedge Funds, Risk Management

October 22, 2013

A Relative Value Strategy: Convertible Arbitrage

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 arbitrage is an important form of relative value strategy where hedge fund managers exploit pricing inefficiencies between convertible securities and the underlying stocks. Under normal… Continue reading

Alternative Investments, Due Diligence, Hedge Funds, Risk Management

October 22, 2013

A Global Macro Strategy: Managed Futures

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 managers rely on the “big picture” or trends to identify investment opportunities and profit from anticipated price movements. There are sub-strategies within global macro strategies,… Continue reading

Alternative Investments, Commodities, Due Diligence, Hedge Funds, Risk Management

October 20, 2013

Private Equity Portfolio Management

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 horizon, and the optimize the risk-return relationships. Since 1952, Markowitz’s basic principles of portfolio construction, which were published in the Journal of Finance, have been… Continue reading

Alternative Investments, Due Diligence, Portfolio Management, Private Equity, Risk Management

December 6, 2012

The Selection and Termination of Investment Managers 投资管理人选择

Investment Manager Selection & Due Diligence Investors demand actively managed investment strategies so they pay extra to hire investment consultants; consultants perform manager due diligence, and advice investors in the asset allocation and portfolio optimization phases. After manager selection, the portfolio construction process will be about optimizing around talents by integrating active where you find… Continue reading

Due Diligence, Portfolio Management

Due Diligence, Manager Selection

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