Fink: Neutralizing underlying hedge fund beta is operationally impractical for allocators
Anne-Marie Fink · Anne-Marie Fink - Cutting Edge Pension Investing at SWIB (EP.389) · Jun 3, 2024 · at 34:58
Anne-Marie Fink explains why SWIB avoids hedging out short-term residual directional beta in hedge fund portfolios.
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“What we don't do is try to take out the betas underneath. Partly we haven't done it because operationally it's difficult, and then partly because if a manager tells us at the end of the month or even the end of the week that they're along something, by the time we put an offsetting position on, they might be shorted, so it's too hard to try and offset it.”
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