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January 11, 2013 at 04:31 AM
New developments over the last week include a report from Rothstein Kass indicating that women managing hedge funds provide higher returns and the announcement by IMCA of the winning academic paper in its 2012 competition.
Also, CapX Partners announced the closing of CapX IV, its $225 million SBIC debenture fund; and the FPA and Veralytic announced that Veralytic’s research on life insurance suitability will be available to FPA members at a discount.
In addition, Cook & Bynam Capital Management announced that it has lowered the net expense ratio on the Cook & Bynam Fund; Security Benefit Corp. introduced its new next-generation fixed indexed annuity; and J.P. Morgan Asset Management announced that it will increase market-based NAV disclosure for three money market funds.
Here are the latest developments of interest to advisors:
1) Rothstein Kass Report: Women Hedge Fund Managers Provide More Alpha
Rothstein Kass announced Thursday the release of “Women in Alternative Investments: Building Momentum in 2013 and Beyond,” the firm’s second annual report examining the performance, prospects and outlook of women in the alternative investment industry. The report focuses on the trends and opportunities for women in the industry, and proprietary performance analysis of women-owned or managed funds.
Results indicated that women hold the highest percentage of C-level jobs within the operational space, at 35.0%, followed closely by C-level compliance and financial positions, at 34.0% and 32.0%, respectively. The percentage of female CEOs and CIOs currently averages less than 20% within the firms polled. In addition, it found that women-owned or managed hedge funds historically performed ahead of the industry, and were also leading for the year to date through September 2012. The Rothstein Kass Women in Alternatives Hedge Index produced a YTD net return through September of 8.95%, compared with the HFRX Global Hedge Fund Index, which has generated a 2.69% net return through September. Furthermore, over a five-year period, the WAI Hedge Index outperformed both the HFRX Global Hedge Fund Index and the S&P 500.
2) IMCA Announces First Academic Paper Competition Winner
Investment Management Consultants Association (IMCA) announced on Thursday the winner of its 2012 Journal of Investment Consulting Academic Paper Competition. The winning paper, “Monitoring Daily Hedge Fund Performance When Only Monthly Data is Available,” addresses a common problem related to time lag that confronts investors who wish to monitor their hedge funds on a daily basis. The paper’s authors are Russ Wermers, associate professor of finance, Robert H. Smith School of Business, University of Maryland at College Park; Daniel Li, research analyst, Markov Processes International LLC; and Michael Markov, chairman, Markov Processes International LLC. The paper will be published in the next issue of the Journal of Investment Consulting, and winners receive a $5,000 cash award. The competition called for papers that examine recent research relevant to investment consulting and private wealth management, and provide a development of theory and applied research related to risk management. Paper submissions were invited from nontenured faculty and doctoral students. The Journal of Investment Consulting editorial advisory board selected the winning paper based on quality and relevancy of the research to investment management consultants and investment advisors.
3) CapX Partners Closes $225 Million SBIC Debenture Fund
CapX Partners announced Thursday the close of its latest fund with total commitments of $225 million. CapX IV closed at the end of 2012 with $75 million of private capital. With its SBIC debenture license, CapX IV now has access to an additional $150 million in debenture leverage funding from the SBIC.
The SBIC program is a federally funded, public-private program created in 1958 to enhance access to investment capital for small business. Total financings to businesses through the SBIC debenture program grew to a 54-year record high of $2.95 billion in fiscal year 2012.
