Masters in Business Team Favorite At the Money: Are Hedge Funds Are Right For You?
12 snips
Apr 9, 2025 
Ted Seides, Founder and CIO of Capital Allocators, draws on his experience at Yale’s investments office to unravel the complexities of hedge funds. He examines the explosive growth of this asset class, now over $5 trillion, and the evolving perceptions of its performance. Seides stresses the importance of realistic expectations versus media sensationalism, discusses the significance of risk management, and explores the changed landscape of fees since the financial crisis. Ultimately, he helps listeners evaluate if hedge funds fit their investment strategies.
AI Snips
Chapters
Books
Transcript
Episode notes
Hedge Funds: Then and Now
- Hedge funds originally aimed to provide equity-like returns with lower risk through hedging.
- Today, many "hedge funds" don't hedge, adopting diverse strategies and risk profiles.
Realistic Return Expectations
- Temper expectations for hedge fund returns; media often highlights outliers.
- Aim for modest, high single-digit returns rather than the sensationalized outliers.
Sources of Alpha
- Two sources of alpha in hedge funds are emerging managers and quant funds.
- Emerging managers exploit market inefficiencies, while quants leverage computational models.
