Journal Detail

Journal 10 – Alternative Investments

April 2004

Hedge funds have become the buzz word in today’s world of high finance. It is not, however, only their complex investment styles that are grabbing the attention of the world’s investment managers, but also because they are facing serious threats from star departures. This issue is dedicated to alternative investments.

It is quite remarkable how hedge funds have become the buzz word in today’s world of high finance. Whether you love them or hate them, you cannot deny the attention they are getting from the trade and popular press, and of course the investment community. It is not, however, only the complex investment styles of hedge funds that is grabbing the attention of the world’s major investment managers. Similar to the trading desks of the major investment banking institutions, they are also facing serious threats from star departures. Lured by the extremely attractive compensation packages, at least of those people who really make the news, and of course not of those who lose their shirts in the process, fund managers and arbitrage desks experts are flocking to join or create their own hedge funds. This brain drain is a serious issue for both of these types of institutions, and they need to find a solution before it really does become too late for the traditional players in this industry.

That is why we have dedicated this whole issue to alternative investments. Please note that we are in no way suggesting that hedge funds represent all of the alternative investment universe; by no means, that is in fact why the last section of this issue has also got a number of articles on private equity. But, the fact is that today hedge funds have become synonymous with alternative investments. So much so that most other alternatives are overlooked. We would like to assure you that had the number and quality of the articles we received on the topic of hedge funds not been so great, we would have been more than happy to include papers on the other types of alternative investments. However, the passion for and against these vehicles was so strong that we were compelled to give them a lot more coverage than we had initially anticipated. We hope that other alternative investment vehicles will forgive us for this oversight.