Research

The Waterloo 2014 Outlook

2014 Outlook: Back to Normal In 2013, the U.S. equity market experienced its best year in well over a decade. The Dow Jones Industrial Average was up 26.5%, the largest annual gain since 1997. Anything with a hint of equity beta did well in 2013, as the tailwinds from the market continued throughout the entire…

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Hedge Funds Explained

Introduction Hedge funds have grown significantly in popularity over the past decade. Total hedge fund industry capital has reached a record level of $2.41 trillion as of Q2 2013. (1) Originally, hedge funds offered little transparency and were limited to sophisticated institutions and ultra-high net worth individuals. Today, hedge funds have become widely accepted among…

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Hedge Fund Strategies: Global Macro

Introduction The global macro hedge fund strategy is one of the more opportunistic and unconstrained hedge fund strategies whereby managers canvass the global economic landscape and seek to profit from macroeconomic imbalances and geopolitical events. Global macro managers pursue a top down investing approach and trade a broad range of strategies in which the investment…

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Long/Short Equity

Introduction The long/short equity strategy is one of the more nimble hedge fund strategies whereby managers seek opportunities across global equity markets with the objective of outperforming traditional markets over a given cycle. The concept behind the long/short equity strategy is simple: investment research uncovers expected winners and losers and the hedge fund enhances its…

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Hedge Fund Strategies: Managed Futures

Introduction Managed futures are a subset of the alternative investments asset class in which professional advisors, known as Commodity Trading Advisors (CTAs), actively trade a diversified set of derivatives instruments in order to exploit directional price trends in various markets. Through the use of proprietary trading systems, CTAs trade across varying time periods and predominately…

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