Hedge fund investors have had difficulty since the onset of the 2008 financial crisis, with a notable deceleration of fund returns and higher than expected equity correlations. With this in mind, a new white paper from institutional consultant Wellington Management provides a framework for building a diversified hedge fund portfolio. The portfolio management framework being proposed by Wellington’s Allocation Strategies team members Adam Berger and Jeffery Sinder challenges traditional notions that ended up so wrong in 2008. In particular, the white paper, “Hedge fund investing after seven lean years,” advocates diversifying across different strategy groups. This means considering the correlation of…
Wellington Offers Hedge Funds' Portfolio Building Guidelines
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.