The Short Rebate: What Is It and Why Should I Care?

Recently a client asked about the short rebate and whether it was to blame for disappointing hedge fund performance.  We thought we would write about it here in case there were others with the same question. What is the short rebate? When a hedge fund shorts a security it must first borrow it.  In order … Continued

Why Are Hedge Funds Getting Clipped?

It has been a tough couple of years for the hedge fund industry.  The HFR Global Hedge Fund Index showed returns of -0.6% in 2014, -3.6% in 2015, and +0.8% through 8/31 of this year significantly underperforming the S&P 500 which returned +13.7%, +1.4%, and +7.8% during the same periods.  This was not a case … Continued