Man Group's McCloskley Says Not Every Hedge Fund Deserves 2 and 20

The video discusses asset allocation, market conditions, and the role of hedge funds in portfolios. It highlights the importance of manager selection, especially during market flux, and explores the use of data, AI, and machine learning in investment strategies. The discussion also covers hedge fund fees, their justification, and how hedge funds are positioned in relation to market correlation and risk management.

What is a key factor to consider when selecting hedge fund managers during market flux?

• The size of the hedge fund

• The manager's educational background

• The manager's past performance

• The location of the hedge fund

In October, what was a notable observation about hedge fund strategies?

• There was a true dispersion in performance

• All strategies performed equally well

• Hedge funds avoided using technology

• Only long-short strategies were successful

How is AI and machine learning being utilized in the credit markets?

• To reduce the number of hedge funds

• To eliminate market volatility

• To increase the number of trades

• To discover liquidity

What has become a profit center in the market according to the discussion?

• Equity trading

• Risk warehousing

• Market making

• Hedge fund management

What is the '2 and 20' fee structure in hedge funds?

• 2% fee for all services

• 20% fee for all services

• 20% management fee and 2% performance fee

• 2% management fee and 20% performance fee

What do investors expect in return for paying the '2 and 20' fees?

• High correlation with the market

• Guaranteed profits

• Minimal risk

• Consistent, uncorrelated returns

How did the hedge fund community's correlation with the market change in October?

• It became less correlated

• It was not affected

• It remained the same

• It became more correlated