[SIUYA]

fyi......a fluff piece maybe

Hedge funds propped up by underfunded pensions - Dec. 5, 2011

[MightyMouse]

Originally Posted by SIUYA »

fyi......a fluff piece maybe

Hedge funds propped up by underfunded pensions - Dec. 5, 2011

The article makes sense since pension funds are frequently not equipped with staff to take invest in high risk, high leverage, high return investments. The easiest way to do so is to pay someone else with the know how. In spite of their under-funded-ness, they have a lot of money.

I do not doubt that a CNN reporter misinterpreted data and wrote an article by a deadline.

[SIUYA]

The financial times in the UK.
Has a great supplement every Monday called FTfm about the funds management business.
This Monday the 5th Dec.....
front page... "Active Managers spark row", plus there is another article talking about "innovation", imho topical given why many just benchmark....its is safer.

FT.com / FTfm / Current Issue

[MightyMouse]

This is the bernanke speech transcript from 2004 when he takes takes credit for the "great moderation".

It is such an awesome display or both arrogance and, subsequently, ignorance.

FRB: Speech, Bernanke--The Great Moderation--February 20, 2004

[TEAMTRADER]

Of course Funds cannot outperform the market - it is the people 'behind' these funds. Funds rely on people with good technical and fundamental abilities.
Fundamentals rely on people telling and writing the truth. Technicals rely on people understanding the indicators.
People are the key, good people, dedicated people and reliable people.
Chose your people with care, not the Fund.
TEAMTRADER
'Trade what you see and not what you hear or Hope'

[Kojak]

I think there is a theoretcal answer and an emperical answer. Or let me put it this way: The emperical question would be : Do Funds (on an average) out perform the market ? And the categorocal answer is : They do not. On an average Funds under perform the market. Always.

The theoretical question is -which is the one that Siyua poses is: Can Funds (ever?) out perform the market ?. Then the answer is now a categorical: Yes, some funds have been out performing the market. And a few do it consistently. Like some hedge funds and some quant funds. The first quant fund that comes to my mind is the Rennaissance Fund

See this quote:Renaissance's leading fund has returned 35%, after fees, since 1989. And D.E. Shaw & Corp., the brainchild of ex-Columbia University computer science professor David E. Shaw, with $23 billion in capital, has netted investors 21% a year for 17 years, without a single losing 12-month stretch. . That was till 2006. 2008 they hit a bad patch, but still it is still spectacular. Thare are quite a few like this -some extremely secretive.

The reality is that funds management is getting extremely sophisticated and skewed with long tails. A significant aportion of the extreme portion of the "positive" tail is actually invisible to us.

Jose Kollamkulam,
Chennai, India

Originally Posted by SIUYA »

After a few recent discussions about funds, out performance, random markets and efficient markets, rather than bog other threads down with diversions, maybe this thread could deal with the question.
Can funds outperform the market?

a few helpful starter packs....

http://www.hedgefundprofiler.com/Documents/154.pdf
http://perspectives.pictet.com/wp-co...gies-Final.pdf
Performance and Persistence of CTAs-Parametric Evidence
http://www.turtletrader.com/GL-SwissHedge.pdf
http://www.intercontilimited.com/mfu...ate_invest.pdf

I quite like the last one....but I think the conclusion will be inconclusive!