Hedge Fund News From HedgeCo.Net

New Whitepaper: Managed Futures and Hedge Funds: A Match Made in Heaven

New York (HedgeCo.Net) – A newly released white paper featuring hedge funds, Revisiting Kat’s Managed Futures and Hedge Funds: A Match Made in Heaven (pdf), has been released by hedge fund risk management and research firm Sunrise Capital Partners LLC.

The whitepaper points out that adding allocations of hedge funds to traditional portfolios of stocks & bonds “helps” – e.g. increases the return and reduces standard deviation of the overall portfolio. However, it also introduces a negative side effect – increased tail risk.

Adding managed futures to stocks & bonds helps more and quicker than do hedge funds. The best risk-adjusted numbers are actually found when combining all four asset classes, and the kicker is that managed futures actually helps to negate and correct the negative side effect brought on by hedge funds.

Alex Akesson
Editor for HedgeCo.net
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