{"id":40755,"date":"2014-02-21T07:47:07","date_gmt":"2014-02-21T12:47:07","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=40755"},"modified":"2014-02-21T18:32:25","modified_gmt":"2014-02-21T23:32:25","slug":"hedge-fund-manager-research-is-paramount-says-northern-trust-director","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/02\/2014\/hedge-fund-manager-research-is-paramount-says-northern-trust-director.html","title":{"rendered":"Hedge Fund Manager Research Is Paramount Says Northern Trust Director"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2014\/02\/download-3.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-40759\" alt=\"download (3)\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2014\/02\/download-3.jpg\" width=\"259\" height=\"194\" \/><\/a>New York (HedgeCo.Net) &#8211; Hedge funds trailed the S&amp;P 500 in 2013, the fifth year in a row. Yet, while hedge funds returned an average 7.4% last year, some investors saw double-digit returns from their hedge fund managers. According to Tony Lissuzzo, Director of Hedge Fund Research at Northern Trust, there are 8,000 hedge funds for investors to choose from.<\/p>\n<p id=\"yui_3_13_0_ym1_1_1392990274577_41665\">\u201cStrong manager selection, combined with thoughtful portfolio construction, lead to superior performance.&#8221;\u00a0Lissuzzo\u00a0said in an interview with HedgeCo.Net. &#8220;We spend a-lot of time and resources on initial due diligence to be sure we thoroughly understand the drivers of return and develop a thoughtful investment thesis.\u00a0 This makes us better investors in the long run as we reconfirm the investment thesis on a monthly basis during our monitoring process.\u201d<\/p>\n<p id=\"yui_3_13_0_ym1_1_1392990274577_41723\">\u201cThe sell decision is where most investors make mistakes.\u00a0 If you don\u2019t have a thorough understanding of a manager and the strategy up front, you may redeem from a manager just based on performance. \u00a0Nine times out of ten this is the wrong thing to do. \u00a0You need to ensure you understand the management team, decision \u00a0making process, market environment, and drivers of return for a fund.\u00a0 On the other hand, by just looking at performance, you run the risk of performance chasing and \u201cconfusing brains with a bull market\u201d for the manager\u2019s strategy.\u201d<\/p>\n<p>The gap between the best and worst hedge fund managers is double that of traditional global equity managers:<\/p>\n<ul>\n<li>For the three years ending March 30, 2013, the median hedge fund returned an average 4.94% per year. But, the dispersion between the 10th percentile and 90th percentile funds was 30%.<\/li>\n<li>In contrast, the 10th-to-90th percentile dispersion for all global equity funds was 13%.<\/li>\n<\/ul>\n<p>Even within strategy classifications from HFRI indices, returns are far more dispersed than traditional global equity managers, &#8220;Investors might be surprised to know the stark difference in returns between managers, even with the same strategy.&#8221; Lissuzzo says.<\/p>\n<p>Alex Akesson<br \/>\nEditor for\u00a0<a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\/\">hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; Hedge funds trailed the S&amp;P 500 in 2013, the fifth year in a row. Yet, while hedge funds returned an average 7.4% last year, some investors saw double-digit returns from their hedge fund managers. According to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16042,16044,919,3],"tags":[],"class_list":["post-40755","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-performance-2","category-hedge-fund-strategies-2","category-hedge-fund-research","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/40755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=40755"}],"version-history":[{"count":7,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/40755\/revisions"}],"predecessor-version":[{"id":40765,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/40755\/revisions\/40765"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=40755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=40755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=40755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}