And Nothing But The Truth

I took the 4th of July weekend off to experience some fireworks and generally laze about celebrating the birth of our country. In lieu of a fresh blog this week, and if you find yourself missing your weekly dose of snarky research, I invite you to watch the full Hedge Fund Truth Video Blog Series. 

If you're curious about the truth behind hedge fund failures, correlations and performance, what it's like to start a hedge fund, why all hedge fund managers are crooks (Hint: they aren't), or why there's no one-size-fits-all option in hedge fund fees, or if you just want to enjoy my southern drawl for a bit, you can spend a good 35 minutes watching one of the seven, short Hedge Fund Truth videos below. 

See y'all next week!

Recent asset flow patterns and fund closures reveal that small (and new) hedge funds may be on the endangered species list. Recent data shows that funds need at least $250 million to break even, and even that may not be enough to successfully run a business. But if small hedge funds go the way of the dinosaur, what happens to structural alpha? Will niche investments, club deals and micro-caps be permanently overlooked? Where will investors look for outsized returns and differentiated portfolios? #saveemergingmanagers!

Weekly blog post from www.aboutmjones.com. This blog deals with the reasons hedge funds fail, and the differences between closing and failing.

This weekly blog posting from MJ Alts looks at the facts and fiction around hedge fund performance. It attempts to discover if hedge hedge funds are for more than just suckers. www.aboutmjones.com.

The wintry weather of the last several weeks has left me particularly punchy and bored, which of course means I had ample time to create yet another animated video blog for my series "The Hedge Fund Truth." This week it is time for managers (and potential managers) to hear what may be some painful truths about launching and running a small hedge fund. In recent years, it seems new funds have been met with a collective "Meh" from the investor marketplace. As we saw in last week's blog, roughly 90% (or more) allocations continue to flow to large, established firms. So what does it take to launch a hedge fund, or any new alternative investment fund, for that matter? Are there non-negotiable keys to success? How should a new manager approach fund raising? Is seeding an option? Should I wait for a big seed investment to come through? This video attempts to answer some of those key questions. For more about alternative investments, including blogs and videos, visit www.aboutmjones.com or follow me on Twitter @MJ_Meredith_J.

Yes, it's time for yet another blog in the Hedge Fund Truth Series. Lately, it seems that an incredible amount of ire has been directed at hedge funds, fueled by four primary beliefs about the industry. While I've blogged about each separately, I thought it would be a good idea to address all four statements in a simple, 6 minute blog to separate fact from fiction. Is hedge fund performance terrible? Do hedge fund managers work? Why are you paying more taxes than your friendly neighborhood hedge fund manager? And what's with the billion dollar salaries anyway? Oh, and I threw in a couple of hedge fund "Mean Tweets" for good measure. Obviously, there's more to each of these topics than I could possibly fit into 6 minutes. If you want to pursue any topic further, please visit my blog archive for multiple, longer discourse on the topics. Please visit www.aboutmjones.com. Sources: AIMA, Washington Post, Forbes, Barron's, Investopedia

There are high correlations all around us. For example, there is a very high correlation between the per capital consumption of cheese and the number of people who are killed by their bedsheets each year. Hedge funds currently have historically high correlations to the indices. Is this a tragedy waiting to happen? If you like the wacky correlations used in the video, please visit Spurious Correlations at http://www.tylervigen.com.

Thinking about a hedge fund investment? Concerned about high fees? Before you request a fee reduction, consider that there isn't a "one size fits all" approach to fee structures. Fee reductions for smaller funds may introduce significant business risks and create counterproductive incentives. Fee reductions for larger funds may be desirable and more sustainable, but are also likely to be in shorter supply. In short, investors AND managers should weigh the costs and benefits of slashing fees before they get themselves into an investing pickle. For more blogs visit www.aboutmjones.com