Every action has consequences. The CalPERS divestiture will have some unanticipated consequences as well. Here are a few. Doors that May Have Closed Two and twenty was already on the rails and headed out of town before the CalPERS announcement. One of the industry’s...
Much has been made of California Public Employees’ Retirement System’s (CalPERS) decision to redeem some $4 billion of its assets from hedge fund investments. However, less is made of the fact that CalPERS manages some $300 billion in funds. This means that...
Even ardent defenders of hedge fund fee structures must acknowledge the impact a marketplace open to retail investors may have on the status quo. Is the hedge fund 2 and 20 rule going the way of the banking industry’s 3-6-3 rule? Disruption It is no revelation...
The retail credit universe is dominated by the FICO score. A consumer with a low FICO score will pay higher interest rates or suffer rejected credit requests. Similarly, a nation’s borrowing power is governed by scores from rating agencies. Moody’s, Standard and...
There are equivalencies that can be drawn between the physician’s Hippocratic Oath to patients, and the hedge fund’s primary responsibility to its clientele. Just as the physician pledges to do no harm, the hedge fund manager has a similar charge with respect to...
