The Novus Research Review for Institutional Investors

Investors in active managers, especially hedge fund investors, are facing some real challenges in today’s environment. Years of underperformance, scrutiny over high fees amidst cheaper alternatives, along with liquidity and transparency concerns have all contributed to this year being the first of many to (likely) see net outflows from the industry. In light of these challenges, is it wise to drop the asset class altogether? Our clients and many other investors we speak to say that now is not the time to abandon hedge funds, but a better approach to investing is the key to staying in the game.

In this collection of research, we focused on some of the aforementioned challenges and used our large data stores and analytics engine to shed light on the evolving concept of manager evaluation. Data is the key and starting point for building a better process, and is an absolutely required element in a world class investment process.

What's in the review?

  • Which Hedge Funds are Worth the High Fees?
  • How to Measure Your Portfolio's True Performance
  • Improving the Investment Manager Evaluation Process
  • Complementing Risk Reports with Public Positions
  • Does More Diversification Result in Better Performance?
  • How to Be a Data-Driven Investor in a Big Data World
  • Alpha Mean-Revision: Is it the Right Time to Invest?
  • How to Use Risk Reports to Assess Manager Skill
  • The Problem with Hedge Fund and Investor Alignment
  • The Hedge Fund Transparency Spectrum