Published inInsights·Mar 9So you’re thinking about launching a new Hedge Fund… Why?TL/DR A clear purpose or mission plays a critical role in determining hedge fund success Hedge Fund founders must understand why they are launching their own fund, define success, and establish guiding principles for the firm to follow. There are two common paths to launching a hedge fund, and understanding…Hedge Funds12 min readHedge Funds12 min read
Published inInsights·Mar 82022: A Superior Vintage In The Making For VCA few weeks ago, Bret Gerstner from Altimeter shared a stunning graph on the expectations vs. returns of Venture Capital vintages over the past 20 years. For Limited Partners (LPs), DPI is the real tangible money-on-money multiple an LP receives from their investment (i.e. …Venture Capitalist7 min readVenture Capitalist7 min read
Published inInsights·Oct 13, 2020Hedge Fund Replication: A Comparison of Factor Modeling and Alternative Risk PremiaFor twenty years, banks, index firms, and asset managers have tried to develop solutions to provide the diversification benefits of hedge funds with low fees and daily liquidity. This effort gained traction during the past decade as more and more institutional investors realized that, in a lower return environment, the…Hedge Funds9 min readHedge Funds9 min read
Published inInsights·Dec 12, 2019Why Asset Managers Should Consider the Retail Market OpportunityThe opportunity for hedge funds, private equity, and other active asset managers to raise capital in the US retail market has never been more attractive. Global wealth has grown to over $200 trillion[1], and the individual investor market has been an increasingly important factor in the growth of asset managers…Investing7 min readInvesting7 min read
Published inInsights·Nov 13, 2019Managing Data Across Multiple Clearing BrokersSophisticated trading firms active in listed derivatives markets understand the importance of being able to efficiently manage data across multiple clearing brokers commonly known as FCMs or Futures Commission Merchants. In an increasingly data-dependent world, where change is the only constant, these firms must develop and continuously reevaluate their data…Finance5 min readFinance5 min read
Published inInsights·Oct 25, 2019Will AI Replace Humans in Investing?The age of AI, otherwise known as the third industrial revolution, many fear will disrupt the industries and displace humans. Autonomous cars will put drivers out of jobs and drones will displace your mailman. Does it seem evident that AI will eventually displace humankind in the hedge fund industry? We…Machine Learning3 min readMachine Learning3 min read
Published inInsights·Oct 17, 2018Traditional Modeling vs. Machine LearningAlgorithms are all around us and used by academics and practitioners alike in many fields. The investment management industry too has been graced by the presence of mathematics and computers to better model and understand market dynamics. The emergence of machine learning brings up a question of how different these…Machine Learning8 min readMachine Learning8 min read
Published inInsights·Jul 24, 2018Breaking Down Artificial IntelligenceWhat is the difference between Artificial Intelligence, Machine Learning, and Deep Learning? Simply put, Artificial Intelligence, or AI, is a state in which machines have human cognitive abilities. Machines of the past required explicit instructions. It took time and a lot of work to construct algorithms or recipes for machines to follow. AI enables machines to make their own recipes. Right now…Artificial Intelligence5 min readArtificial Intelligence5 min read
