Disclosure certainty 4/5 debate potential 1/5

Novus receives position-level transparency from 1,500 hedge fund managers

Basil Qunibi · Basil Qunibi - Moneyball for Allocators (Capital Allocators, EP.42) · Mar 5, 2018 · at 23:11

Basil Qunibi, CEO of investment analytics firm Novus Partners, describes the scale of Novus's administrator-sourced hedge fund dataset.

0:00 / 0:05exact quote · 5.7s
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“We have about 1500 hedge fund managers that now give us their position Level transparency directly from administrators”

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More from Basil Qunibi

Assertion Not checkable as stated
Exposure management detracts ~200 basis points annually from hedge fund returns
“Exposure management, on average, that tracks approximately 200 basis points a year from a manager's performance.”
Basil Qunibi Mar 5, 2018 ▶ 23:28 Basil Qunibi - Moneyball for Allocators (Capital Allocators, EP.42)
Insight
Sample size predicts manager performance persistence better than time periods
“And so when I think about persistence, I think about it in terms of N, not in terms of T. So I think about number of observations as being a more important predictor of what will happen in the future than whether or not there's consistency in T.”
Basil Qunibi Mar 5, 2018 ▶ 34:04 Basil Qunibi - Moneyball for Allocators (Capital Allocators, EP.42)
Insight
Severe liquidity deterioration when scaling AUM is fatal for fund managers
“And the first two, while they're about deterioration, the last one, liquidity deterioration, is about being in business. And it's the only fatal one of the three choices. And so, for example, I've yet to see a manager that has experienced a significant liquidi…”
Basil Qunibi Mar 5, 2018 ▶ 43:42 Basil Qunibi - Moneyball for Allocators (Capital Allocators, EP.42)
Insight
Allowing hedge funds double the volatility could more than double returns
“If we could just let our managers run with twice as much of all, I think we'd probably get more than twice as much return.”
Basil Qunibi Mar 5, 2018 ▶ 50:49 Basil Qunibi - Moneyball for Allocators (Capital Allocators, EP.42)
Assertion Not checkable as stated
Skilled position sizing can add 900 basis points annually to returns
“And some Managers generate something like 900 basis points a year of excess return to their equally weighted portfolio.”
Basil Qunibi Mar 5, 2018 ▶ 28:34 Basil Qunibi - Moneyball for Allocators (Capital Allocators, EP.42)
Assertion Supported
Hedge fund rolling three-year performance periods have a -0.15 correlation
“To give you a statistic, rolling three-year performance periods for hedge funds, correlation between different rolling three-year periods is about -.15.”
Basil Qunibi Mar 5, 2018 ▶ 31:18 Basil Qunibi - Moneyball for Allocators (Capital Allocators, EP.42)
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