Supposedly, the reason that sophisticated investors like pension funds and endowments pay 2% management fees and 20% upside fees (and sometimes more) to hedge funds and private equity funds (and higher-than-index-fund fees for long equity managers) is that they are buying “alpha,” which is the manager’s ability to beat the relevant market. (To be more […]
Read more...Harvard is famous for attracting the best and the brightest, particularly in its own fund management operations (its endowment is currently over $22 billion). Mohamed El-Erian, the president and CEO of Harvard Management Company and a Harvard Business School faculty member, made these observations today in a Financial Times article, “Complex finance and the brave […]
Read more...I confess to being late in getting around to the announcement by MSCI Barra, which was reported on January 12 in Global Pensions, of their intention to add 20,000 indices in the coming months, which would bring the total to over 100,000: Global index provider MSCI Barra will be launching some 20,000 new indices over […]
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