January 2017

It’s Time to Clean Up Managed Futures Mutual Funds

Our latest commentary on the liquid alts space has been published in WealthManagement.com: It’s Time to Clean Up Managed Futures Mutual Funds “Fair fees” and “managed futures” have been the investment equivalent of an oxymoron. by Andrew Beer Click here to read the full article

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Barron’s: How Some Hedge Funds Have Ripped You Off

In his most recent article in Barron’s, Andrew Beer lays out the unsavory ways many funds have been marketed by wealth managers. Excerpt: If you’ve been invested in hedge funds over the past decade, you probably feel cheated. And you should. No, the problem isn’t that you were overcharged by hedge fund managers – they’re simply tried and true capitalists seeking to maximize profits. The bigger issue is that the cottage industry of advisors, consultants and private bankers who put you into hedge funds in the first place were supposed to watch your back…and didn’t. The problem: Most people in …

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Barron’s: Hedge Fund ETFs Disappoint

ETFs that aim to replicate hedge fund returns employ many different strategies—with mixed results. By Sarah Max — December 24, 2016 Excerpt: “Alternative beta “tends to produce more predictable results,” says Andrew Beer, managing partner at Beachhead Capital Management, which uses exchange-traded funds to create its own hedge fund replications for advisors and wealthy individuals. His method: Track the 40 largest long/short hedge funds and use historical information to predict how they will respond to market changes. He then uses ETFs to choreograph similar moves. Barron’s subscribers: click here to read the full article

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Hedge funds fees take a trim

Link to FT article with quote from Andrew Beer Traditional ‘2 and 20’ fees are becoming outdated as managers seek to keep investors happy by: Lindsay Fortado — December 22, 2016 Excerpt: The willingness to negotiate on fees shows how the longstanding 2 and 20 formula for hedge fund fees is becoming outdated. While there has always been pressure on hedge fund managers to reduce their fees, some of the highest in finance, lacklustre performance this year by several of the biggest names in the industry has forced funds who once billed some of the highest rates in the industry …

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