Is There a Negative Relationship Between Hedge Fund Size and Performance?
Earlier this year, Gatemore commissioned Cass Business School to conduct the most comprehensive study to date on the relationship between hedge fund size and performance.
Read moreIllusion of Control
"Being on a hot streak is one of the most dangerous things that can happen to a professional or individual investor”: these counterintuitive words are a key takeaway from a recent Wall Street Journal piece on the illusion of control and the importance of staying grounded in the face of investment success.
Read moreThe New Paradigm in Oil
An April 22nd article in the New York Times entitled “New Balance of Power” details the waning influence of OPEC on world oil prices and the rising primacy of market forces, declaring that “the United States is overtaking the Organization of the Petroleum Exporting Countries as the vital global swing producer that determines prices.”
Read moreBanking 2.0
The dramatic events of October 2008 changed the game for banks globally; over-leveraged and under-capitalized, lenders throughout the developed world have embarked on a lengthy and painful period of rationalization.
Read moreBarrel Half Full
As the price of oil continues to languish in the mid-$40 per barrel, down from over $100 last June, markets seem to be ignoring the positive and focusing on the negative: broader US and world equity markets are down on the year, oil and oil-servicing companies are taking a huge hit
Read moreThree Men Make a Tiger
An ancient Chinese proverb warning against groupthink tells of how a high-ranking official once asked his King: would you believe a cry that a tiger was free in the marketplace?
Read moreKeep Calm and Allocate
A rash of fears have overtaken markets. Over the past four weeks, the VIX (volatility index - aka “the fear index”) has risen 86% whilst global equities have slumped 7.6%
Read moreThe Big Issue
In an announcement last week, CalPERS called an end to its $4 billion hedge fund portfolio, citing scale, complexity and cost as key rationale for shutting down a program that has been in place for twelve years.
Read moreThe Spinning Dancers
There is an optical illusion known as The Spinning Dancer in which a female dancer continuously pirouettes. Some people will see the dancer spinning clockwise (with her left foot on the ground) while others will interpret her as spinning anti-clockwise
Read moreBubbles Everywhere or Just the “New Normal”?
There has been a growing chorus of investors and pundits decrying bubbles in nearly every major asset class - rates, credit, equities, and even (once more) property.
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