Boosting the Performance of Hedge Fund Managers
capitalmarketsciooutlook

Boosting the Performance of Hedge Fund Managers

By Capital Markets CIO Outlook | Tuesday, April 09, 2019

Hedge Fund Research is a research firm which collects, aggregates, and analyzes alternative information on investments. In addition to a variety of other research goods for the alternative investment industry, including the HFR industrial report, HFR produces an HFR Hedge fund database which is one of the most widely used hedge fund business databases in the industry.  Currently, over 6800 alternative investment products have been included in HFR’s Hedge Fund database. Information is directly obtained from the fund managers and their respective offshore administrators on the hedge fund universe of established and upcoming managers, while the other relevant information is gathered from memoranda, site visits, and due diligence interviews.

The HFR blockchain indices reflect the performance of fund managers, who invest in the blockchain digital currency and distributed ledger technology. Blockchain strategy is divided into two substantive strategies which are cryptocurrency and infrastructure. Cryptocurrency fund managers use a range of trading strategies to take advantage of bitcoin, ethereum, and other digital currencies. Infrastructure managers invest in blockchain and other distributed ledger technologies that mainly disrupt payment systems, banking, market structures, IoTs, healthcare, transfer systems, supply, and digital identities.

A hedge fund manager must submit fund performance to HFR Database to be included in the HFR Blockchain Indices. In the month following their addition to the HFR Database, Funds are eligible for inclusion in HFR Blockchain Indices. When reporting their performance in July, a fund that is added to the HFR database is eligible for inclusion in the indices. In addition, all constituents of HFR Blockchain Indices shall report on their performance of fees net and assets under administration in U.S. dollars every month.

Cryptocurrency trading is done directly by the investment managers. The strategy’s primary aim is to trade cryptocurrency to obtain profits by investing or cutting down on bitcoin or other digital currencies. The general thesis of investment is to generate profits through an actively managed crypto-currency investment portfolio. Managers are allowed to use a range of trade strategies to analyze the market using discretionary technologies or a range of automated Bitcoin trading algorithms to adjust their portfolios if necessary.

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