«Shorter
duration hedge fund assets have grown at a rapid pace even as market liquidity has deteriorated, particularly in the high yield and distressed debt markets.
Not exact matches
Moving on to non-traditional bond
funds, this type of alternative
asset class invests in debt holdings but seeks to
hedge duration and / or credit risk.
Strategic Dividend Value is
hedged at about half the value of its stock holdings, and Strategic Total Return continues to hold a
duration of just over 3.5 years (meaning that a 100 basis point move in interest rates would be expected to impact
Fund value by about 3.5 % on the basis of bond price fluctuations), with less than 10 % of
assets in precious metals shares, and about 5 % of
assets in utility shares.
Hedge funds bought long
duration assets, stocks and longer bonds, when their capital bases could be withdrawn at much shorter intervals.
Their main performance metric is 7 - factor
hedge fund alpha, which corrects for seven risks proxied by: (1) S&P 500 Index excess return; (2) difference between Russell 2000 Index and S&P 500 Index returns; (3) 10 - year U.S. Treasury note (T - note) yield, adjusted for
duration, minus 3 - month U.S. Treasury bill yield; (4) change in spread between Moody's BAA bond and T - note, adjusted for
duration; and, (5 - 7) excess returns on straddle options portfolios for currencies, commodities and bonds constructed to replicate trend - following strategies in these
asset classes.
Banks Income & Growth FundPurpose Diversified Real
Asset FundPurpose
Duration Hedged Real Estate FundPurpose Multi-Strategy Market Neutral FundSilver Bullion TrustInvestment Grade Managed
Duration Income FundLimited
Duration Investment Grade Preferred Securities
Fund