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1 – 10 of over 97000
Article
Publication date: 1 January 2005

Jedd Wider and Kevin Scanlan

Seeks to introduce several of the important issues that must be resolved in connection with the structuring and formation of a customized hedge fund program

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Abstract

Purpose

Seeks to introduce several of the important issues that must be resolved in connection with the structuring and formation of a customized hedge fund program

Design/methodology/approach

Explains why some institutional investors have sought alternative investment structures that provide for the establishment of dedicated, captive hedge fund programs and provides an introduction to several of the important issues that must be resolved in connection with such a program, including the choice of investment vehicle, Investment Company Act considerations, ERISA considerations, tax considerations, Investment Advisers Act issues, terms of the captive fund's governing document, investment guidelines, and performance‐monitoring processes.

Findings

At a time when hedge fund assets are growing exponentially, some institutional investors have turned to dedicated, captive hedge fund programs to ensure their access to talented hedge fund managers and secure a diversified investment approach.

Originality/value

Two attorneys who work with hedge funds provide important guidance on structuring and satisfying the regulatory requirements for dedicated, captive hedge fund programs.

Details

Journal of Investment Compliance, vol. 6 no. 1
Type: Research Article
ISSN: 1528-5812

Keywords

Article
Publication date: 1 April 2014

Wejendra Reddy, David Higgins and Ron Wakefield

In Australia, the A$2.2 trillion managed funds industry including the large pension funds (known locally as superannuation funds) are the dominant institutional property…

1169

Abstract

Purpose

In Australia, the A$2.2 trillion managed funds industry including the large pension funds (known locally as superannuation funds) are the dominant institutional property investors. While statistical information on the level of Australian managed fund investments in property assets is widely available, comprehensive practical evidence on property asset allocation decision-making process is underdeveloped. The purpose of this research is to identify Australian fund manager's property asset allocation strategies and decision-making frameworks at strategic level.

Design/methodology/approach

The research was undertaken in May-August 2011 using an in-depth semi-structured questionnaire administered by mail. The survey was targeted at 130 leading managed funds and asset consultants within Australia.

Findings

The evaluation of the 79 survey respondents indicated that Australian fund manager's property allocation decision-making process is an interactive, sequential and continuous process involving multiple decision-makers (internal and external) complete with feedback loops. It involves a combination of quantitative analysis (mainly mean-variance analysis) and qualitative overlay (mainly judgement, or “gut-feeling”, and experience). In addition, the research provided evidence that the property allocation decision-making process varies depending on the size and type of managed fund.

Practical implications

This research makes important contributions to both practical and academic fields. Information on strategic property allocation models and variables is not widely available, and there is little guiding theory related to the subject. Therefore, the conceptual frameworks developed from the research will help enhance academic theory and understanding in the area of property allocation decision making. Furthermore, the research provides small fund managers and industry practitioners with a platform from which to improve their own property allocation processes.

Originality/value

In contrast to previous property decision-making research in Australia which has mainly focused on strategies at the property fund investment level, this research investigates the institutional property allocation decision-making process from a strategic position involving all major groups in the Australian managed funds industry.

Details

Journal of Property Investment & Finance, vol. 32 no. 3
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 8 May 2018

Haruna Babatunde Jaiyeoba, Abideen Adeyemi Adewale, Razali Haron and Che Muhamad Hafiz Che Ismail

This study aims to investigate the Malaysian retail investors and fund managersinvestment decision behaviours. The study offers an important opportunity for understanding the…

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Abstract

Purpose

This study aims to investigate the Malaysian retail investors and fund managersinvestment decision behaviours. The study offers an important opportunity for understanding the investors’ experiences, how they understand the Malaysian economy and their priorities for company selection. Other main aspects of this study are how investors mitigate the influence of emotions and psychological biases and challenges faced during investment decisions.

Design/methodology/approach

The researchers have mainly adopted an interpretivist approach for the present study. Qualitative data elicited through semi-structured interviews conducted with four retail investors and four fund managers were subjected to qualitative thematic analysis.

Findings

The results reveal that the investment decision processes of fund managers are more comprehensive than those of retail investors. Although both fund managers and retail investors acknowledge the influence of psychological biases on their investment decisions, the former use different and comprehensive approaches to mitigate such influences during investment decisions compared with the latter. Other important findings are how investors understand the Malaysian economy, their priorities for company selection and challenges faced during investment decisions.

Research limitations/implications

The researchers have interviewed eight carefully selected interviewees across retail investors and fund managers divide. Adopting other grouping criteria, focus group discussion with more respondents or adopting a mixed-methods approach may increase our understanding of the investment decision behaviours of Malaysian retail investors and fund managers.

Practical implications

This study could be used as a guide by both retail investors and fund managers when making investment decisions.

Originality/value

This research has included both retail investors and fund managers; it has also increased literature on investment decision and behavioural finance, particularly in the context of Malaysian investors and managers.

Details

Qualitative Research in Financial Markets, vol. 10 no. 2
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 8 February 2023

Rafał Wolski, Monika Bolek, Jerzy Gajdka, Janusz Brzeszczyński and Ali M. Kutan

This study aims to answer the question whether investment funds managers exhibit behavioural biases in their investment decisions. Furthermore, it investigates if fund managers

Abstract

Purpose

This study aims to answer the question whether investment funds managers exhibit behavioural biases in their investment decisions. Furthermore, it investigates if fund managers, as a group of institutional investors, make decisions in response to central bank’s communication as well as other information in relation to various behavioural inclinations.

Design/methodology/approach

A comprehensive study was conducted based on a questionnaire, which is composed of three main parts exploring: (1) general information about the funds under the management of the surveyed group of fund managers, (2) factors that influence the investment process with an emphasis on the National Bank of Poland communication and (3) behavioural inclinations of the surveyed group. Cronbach’s alpha statistic was applied for measuring the reliability of the survey questionnaire and then chi-squared test was used to investigate the relationships between the answers provided in the survey.

Findings

The central bank’s communication matters for investors, but its impact on their decisions appears to be only moderate. Interest rates were found to be the most important announcements for investment fund managers. The stock market was the most popular market segment where the investments were made. The ultra-short time horizon played no, or only small, role in the surveyed fund managers’ decisions as most of them invested in a longer horizon covering 1 to 5 years. Moreover, most respondents declared that they considered in their decisions the information about market expectations published in the media. Finally, majority of the fund managers manifested limited rationality and were subject to behavioural biases, but the decisions and behavioural inclinations were independent and, in most cases, they did not influence each other.

Practical implications

The results reported in this study can be used in practice to better understand and to improve the fund managers’ decision-making processes.

Originality/value

Apart from the commonly tested behavioural biases in the group of institutional investors in the existing literature, such as loss aversion, disposition effect or overconfidence, this paper also focuses on the less intensively analysed behavioural inclinations, i.e. framing, illusion of the control, representativeness, sunk cost effect and fast thinking. The originality of this study further lies in the way the research was conducted through interviews with fund managers, who were found to be subject to behavioural biases, although those behavioural inclinations did not influence their investment decisions. This finding indicates that professionalism and collectivism in the group of institutional investors protect them from irrationality.

Details

Qualitative Research in Financial Markets, vol. 15 no. 5
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 1 January 2005

Carolyn E. Taylor

On October 26, 2004, the Securities and Exchange Commission (the “Commission” or the “SEC”) adopted a new rule and related amendments requiring, among other things, that hedge…

Abstract

On October 26, 2004, the Securities and Exchange Commission (the “Commission” or the “SEC”) adopted a new rule and related amendments requiring, among other things, that hedge fund managers register with the SEC under the Investment Advisers Act of 1940, as amended (the “Advisers Act”) by February 1, 2006. In this article, we refer to the totality of the recent rulemaking as the “new rules.” The new rules and a lengthy interpretive release (the “Adopting Release”) were made available to the public on December 2, 2004.The new rules only slightly modify the text of the proposed rules published by the SEC on July 20, 2004. We will refer to the July 20, 2004 rules as the “proposed rules.” The proposed rules, which were opposed by two of the five SEC commissioners at the time they were announced, provoked a loud outcry and strong opposition. According to the Adopting Release, the SEC received 161 comment letters from investors, hedge fund managers, mutual fund managers, law firms, and others. Of these, only 36 supported the proposed rules, 83 argued against them, and the remainder presented a neutral view. The objections included “concerns about the costs of compliance under the new rule[s], questions about [SEC] effectiveness in preventing hedge fund fraud, and the potential intrusiveness of [SEC] oversight of hedge fund managers.”

Details

Journal of Investment Compliance, vol. 5 no. 4
Type: Research Article
ISSN: 1528-5812

Keywords

Article
Publication date: 5 April 2022

Ya-Hui Ling

This study examines the influence of context on Taiwanese senior managers' corporate social responsibility (CSR) decisions. The study seeks to identify the current profiles of…

Abstract

Purpose

This study examines the influence of context on Taiwanese senior managers' corporate social responsibility (CSR) decisions. The study seeks to identify the current profiles of managerial CSR perspectives and organizational CSR investments in Taiwan. In particular, whether a non-Friedman perspective is more prevalent than a Friedman perspective and whether community-related CSR is more prevalent than other CSR practices in Taiwan remain unclear. The study also seeks to identify the relationship between managers' CSR perspective profiles and organizational CSR investment profiles in Taiwan.

Design/methodology/approach

The sample was selected from the Taiwanese top companies list. Altogether, 150 valid responses from senior managers of 150 companies were returned.

Findings

The reported evidence shows that senior managers' Friedman/non-Friedman CSR perspective has a great influence in directing a firm's CSR decision in Taiwan. Managers holding the Friedman perspective are slightly more than those holding the non-Friedman CSR perspective, but both perspectives are popular. There is a tendency for firms to make either more or less investments in all CSR dimensions. A Friedman perspective tends to be associated with low CSR investments, and a non-Friedman perspective tends to be associated with high CSR investments.

Originality/value

A major contribution of this study is to offer a different perspective from the Western view regarding CSR implementation in a Chinese-dominant culture society. The study extends the upper echelon theory that managerial CSR perspectives can be a driver of a firm's CSR decision-making. The study also offers further evidence for the institutional theory that CSR is contextually dependent.

Details

Cross Cultural & Strategic Management, vol. 29 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Book part
Publication date: 16 January 2023

John Ward

This chapter discusses the current landscape for digital asset investing and the many operational risks facing cryptocurrency investors. It also discusses the ongoing progress in…

Abstract

This chapter discusses the current landscape for digital asset investing and the many operational risks facing cryptocurrency investors. It also discusses the ongoing progress in the institutionalization of digital asset investment and the risks inherent when investing in cryptocurrencies and blockchain opportunities. Investors considering investing in a public or private fund that invests in digital assets must be aware of the operational risks that may directly impact their investments, including risks from portfolio concentration, illiquidity, hacking, digital asset custody, and digital asset valuations. Operational due diligence reviews of funds and fund managers are critical in assessing operational risks for digital asset investment.

Details

The Emerald Handbook on Cryptoassets: Investment Opportunities and Challenges
Type: Book
ISBN: 978-1-80455-321-3

Keywords

Article
Publication date: 14 September 2023

Shubhangi Verma, Purnima Rao and Satish Kumar

This study aims to establish the factors affecting the financial investment decision-making of an investor, with specific reference to investors’ emotions and how various events…

Abstract

Purpose

This study aims to establish the factors affecting the financial investment decision-making of an investor, with specific reference to investors’ emotions and how various events such as festivals, the pandemic and sports matches affect their investors’ investment decision-making. The authors further intend to understand the role of these investor emotions in creating stock market anomalies.

Design/methodology/approach

Twenty-nine semistructured exploratory interviews with fund managers from the top 10 asset management companies in India, who deal with individual investors regularly, were taken. The interviews were conducted to identify and describe the underlying ideas and sentiments that influence an individual’s investment behavior.

Findings

Although risk and return are the primary motivators of investment decisions, fund managers’ daily interactions with individual investors are affected by unpredictability and technical ambiguity, and investing is an inherently emotionally arousing process, according to the findings of the in-depth interviews.

Originality/value

To the best of the authors’ knowledge, this study is one of the first studies in Indian market to report the views of financial professionals about the emotional aspect of investors in making an investment decision. With most of the research conducted using quantitative methods, the current study brings in the perspective of financial professionals using primary data.

Details

Qualitative Research in Financial Markets, vol. 16 no. 2
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 10 May 2019

Carl-Christian Trönnberg and Sven Hemlin

The purpose of this study was to gain a better understanding of pension fund managers investment thinking when confronted with challenging investment decisions. The study focuses…

Abstract

Purpose

The purpose of this study was to gain a better understanding of pension fund managers investment thinking when confronted with challenging investment decisions. The study focuses on the theoretical question of how dual thinking processes in experts’ investment decision-making emerge. This question has attracted interest in economic psychology but has not yet been answered. Here, it is explored in the context of pension funds.

Design/methodology/approach

The sample included 22 pension fund managers. The authors explored their decision-making by applying the critical incident interview technique, which entailed collecting investment decisions that fund managers retrieved from recent memory (Flanagan, 1954). Questions concerned the investment situation, the decision-making process and the challenges and uncertainties the fund managers faced.

Findings

Many of the 61 critical incidents examined concerned challenging (mostly stock) investments based on extensive analysis (e.g. reliance on external analysts for advice; analysis of massive amounts of hard company and stock market information; scrutiny of company reports and personal meetings with CEOs). However, fund managers to a high degree based their decisions on soft information judgments such as experience and qualitative judgements of teams. The authors found heuristics, intuitive thinking, biases (sunk cost effects) and social influences in investment decision-making.

Research limitations/implications

The sample is small and not randomly selected.

Practical implications

The authors suggest anti-bias training and better acquaintance with human forecasting limitations for pension fund managers.

Originality/value

Pension fund managersinvestment thinking has not previously been investigated. The authors show the types of investment situations in which analytical and intuitive thinking and biases occur.

Details

Qualitative Research in Financial Markets, vol. 14 no. 2
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 14 June 2011

Thomas M. Schiera

The aim of this paper is to provide hedge fund and other private fund managers with a brief recap of regulatory changes in 2010 and a reminder of certain “best practices” they…

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Abstract

Purpose

The aim of this paper is to provide hedge fund and other private fund managers with a brief recap of regulatory changes in 2010 and a reminder of certain “best practices” they should consider as they prepare for 2011.

Design/methodology/approach

The paper provides 2010 regulatory highlights, including relevant provisions of the Dodd‐Frank Wall Street Reform and Consumer Protection Act, the Pay‐to‐Play Rule, and amendments to Form ADV. It outlines issues for consideration in 2011, including preparation for SEC registration (if applicable), review of compliance policies and procedures, updating Form ADV, Form D and Blue Sky Filings, “custody rule” (Rule 206(4)‐2 under the Advisers Act) compliance, other regulatory filings that may be required (including Form 13F, Schedule 13D/13G, and Forms 3, 4, and 5), CFTC regulatory requirements for investment managers who trade or advise others on trading commodity futures contracts, certain tax considerations (including foreign bank, brokerage and other financial account (FBAR) reporting requirements), the Foreign Tax Compliance Act of 2009 (FACTA)), ERISA and Department of Labor considerations, fee deferral arrangements, and offering document updates.

Findings

This summary is not intended to provide a complete list of an investment manager's obligations relating to its compliance with applicable rules and regulations or to serve as legal advice. It does not address any non‐US or state law requirements and has not been tailored to the specific needs of a particular investment manager's business.

Originality/value

This paper provides useful summary practical guidance from experienced financial institutions lawyers.

Details

Journal of Investment Compliance, vol. 12 no. 2
Type: Research Article
ISSN: 1528-5812

Keywords

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