RESEARCH

The index revolution in hedge funds is here!  Well, actually, it arrived fifteen years ago -- but established allocators spent the first decade or so fighting it tooth and nail to prevent it from spreading and, in the process, tried their damnedest to convince everyone it couldn’t, wouldn’t or sh...

Morningstar in recently published reports makes the case for the “index-like” revolution in liquid alts. We strongly believe that only one strategy has demonstrated the potential to deliver on this:  factor-based hedge fund replication....

Almost overnight, allocators started to swap out fixed income exposure for hedge funds. What’s driving this? Two trends: after large and sudden drawdowns in both 2020 and 2021, many allocators simply want out of traditional fixed income; meanwhile, with alpha back, hedge funds appear to have much...

Absolut Alternative, a German periodical focused on institutional investors, asked DBi to write a comprehensive history of the liquid alternative space. This is the English version of an article titled, Herausforderung Hedgefunds-Paradoxon, that was published in May 2021....

Managed Futures Strategies Might Hold the Key Legendary macro investor Stan Druckenmiller recently laid out a scenario where 4-5% inflation in the near term is possible or maybe even probable.[1]  Fiscal stimulus, the “biggest increase in pent up demand globally since the 1920s” and monetary st...

Have hedge funds bought into to the much-discussed value factor rotation that began in the Fall? The short answer is yes, in a big way. Strategies that replicate portfolios of hedge funds using factor models can determine how hedge funds are positioned today across major equity markets, and how thos...

While pundits love to beat up on hedge funds these days, hedge funds may have a more compelling opportunity set today and the hurdle to demonstrate value will likely be low over the coming years...