This is a summary of links featured on Quantocracy on Saturday, 10/31/2015. To see our most recent links, visit the Quant Mashup. Read on readers!
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Hedge Fund Closet Indexing: 2015 Update [Alpha Beta Works]A fund must take active risk to generate active returns in excess of fees. However, some managers charge active fees but manage their funds passively. Managers also tend to become less active as they accumulate assets. This problem of hedge fund closet indexing is widespread. Over a third of capital invested in U.S. hedge funds long equity portfolios is too passive to warrant the common 1.5/15%