tag:blogger.com,1999:blog-582368152716771238.post1565901672320836384..comments2024-03-18T07:59:05.430-05:00Comments on The Grumpy Economist: Hedge FundsJohn H. Cochranehttp://www.blogger.com/profile/04842601651429471525noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-582368152716771238.post-78014526732139000412014-08-06T22:03:52.213-05:002014-08-06T22:03:52.213-05:00My brother's financial advisor was trying to s...My brother's financial advisor was trying to sell him a private equity fund. I said don't do it. I'd seen enough to know that they are pretty rough deals, and if they are trying to sell it to doctors in the Midwest, it will be pretty hairy. My other brother who is an executive at a PE owned company agreed with me. We queered the deal. This article confirms my judgement.Fat Manhttps://www.blogger.com/profile/09554029467445000453noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-40816779632430537452014-08-06T18:23:24.997-05:002014-08-06T18:23:24.997-05:00"I'm interested by their finding that he..."I'm interested by their finding that hedge funds do earn just enough alpha before fees to pay their fees." <br />Maybe I'm making a mistake, but I read the charts differently to you. I thought they suggested that Hedge funds earn negative alpha after fees (hence the black Protege Partners line below the blue 'Vanguard deleveraged' line), and zero alpha before fees (because once they deduct fees in the last panel they almost exactly replicate the Protege Partners returns)?<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-54474741894466015102014-08-06T10:59:30.349-05:002014-08-06T10:59:30.349-05:00Thanks.Thanks.John H. Cochranehttps://www.blogger.com/profile/04842601651429471525noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-24539673609963533132014-08-06T10:33:13.096-05:002014-08-06T10:33:13.096-05:00Dear John,
Readers who don't have access to t...Dear John,<br /><br />Readers who don't have access to the Journal of Finance can get a nice summary of the Fama/French paper on "Luck vs. Skill" at the Fama/French Forum. The link to that summary is http://www.dimensional.com/famafrench/essays/luck-versus-skill-in-mutual-fund-performance.aspx.<br /><br />Best,<br /><br />JacoboAnonymoushttps://www.blogger.com/profile/06675887652229400610noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-53231552017882505252014-08-06T04:37:14.645-05:002014-08-06T04:37:14.645-05:00Dear Professor Cochrane,
To get access to the Nom...Dear Professor Cochrane,<br /><br />To get access to the Nomura report, one needs to be a member of the Long Room, a members-only section of the FT Alphaville. Membership is free of charge and following this link you find all the details http://discussions.ft.com/longroom/faq/.<br /><br />Kind regrads,<br /><br />Andreea MitracheAnonymoushttps://www.blogger.com/profile/09310237026944755004noreply@blogger.com