While once considered “mysterious,” characterized by investor misconceptions and thoroughly debated after the global financial crisis, hedge funds at their core remain a fairly simple structure with a flexible investment mandate. This white paper debunks myths about hedge funds and explains how they generate profits.
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Hedge Funds in the Current Environment: Mercer believes that now is a good time to consider (or reconsider) hedge fund investing. This article explores the case for hedge funds with a focus on the current environment. Mercer also offers some thoughts on choosing the best hedge funds and how to build robust portfolios.
Mercer’s Research Perspectives covers a wide variety of investment topics. This edition includes a discussion on liquid alternative investments, actively managed global small-cap equities, features our new study on climate change, introduces the Chinese bond market and closes with an interview with Stefan Hepp who joined Mercer through the ac...
In this paper, Cara Lafond explores family office characteristics and makes recommendations for asset allocation strategies that ensure growth of assets and preservation of capital and purchasing power, two goals that have been identified as important to most family offices. She emphasizes the importance of downtown risk mitigation and argues that ...
The decision to sell or continue ownership of a family business is complex. Business owning families who recognize early the importance of both the financial and non-financial considerations of a potential sale are more likely to make good transition decisions.
Clients often hire domestic staff for help managing a large family and household. But for the affluent homeowner, there are significant risks associated with retaining employees such as babysitters, elder-caregivers, and housekeepers, to name just a few. When hiring domestic workers, it’s important to consider and address the risks involved, ...
One area of concern arises from large or multi-engine jet aircraft owners and operators — or their counsel — who focus solely on the potential civil liability risks. These parties often seek to minimize potential civil liability by creating a sole-asset company to own and operate the aircraft, which is in turn owned by the individual or...
Market volatility can serve as a reminder of what investors can and can’t control. What is information, and what is noise? What is predictive of the future, and what is just the past? Long-term investors should focus on what they can control and stay the course – provided they are on the “best” course.The best course is the ...
With cyber theft often in the headlines, it might seem as though it’s not a question of whether your personal information will be compromised, but when. For example, you have likely seen CNN’s estimates that over 100 million Americans have had their personal information stolen and exposed over a one year period. This may leave you wonde...
One of the most common wealth transfer and estate planning techniques is to use an irrevocable life insurance trust (ILIT) to own life insurance policies. This structure enables individuals and families to direct the transfer of assets in a tax-efficient manner from one generation to another for the benefit of the trust’s beneficiaries.As wit...
Family businesses face unique and often unanticipated challenges transitioning from one generation to the next. The struggle to maintain and protect both family interests and business interests is intricate and complex, with some businesses falling prey to changing environments and deteriorating opportunity amid generational succession.These challe...
Modern medicine has enabled far longer lifespans than ever before. While this is an overall positive development, it also means that many of us will spend years as a caregiver of parents and aging loved ones or as a recipient of that care. Whether your family is facing this situation in the short or long term, and whether you are in the role of car...
Impact investing has become a popular topic of discussion, not only with the mainstream media but also with mainstream investors. Yet while impact investing has entered the mainstream mindset, many investors with the enthusiasm and means to engage meaningfully in impact investing lack the informational resources to do so. For most investors today, ...
Inter-generational role transitions are often bumpy when it comes to the family business. Power and authority are not always easy to lay down when the baton is passed to the next generation, despite best laid plans. In the case of Julie Jacks and her cousins, the transition didn’t go as smoothly as they had hoped. Important discussions were h...
Conventional advice may be harmful if you’ve accumulated significant wealth. Avoiding critical mistakes in asset allocation and family communication, as well as working with a trusted advisor in a collaborative environment are key best practices for ultra-high net worth individuals to pursue. This article provides some of the most common erro...